Pension age increase just start of July changes

First of July changes are routine but put this time round it's different with pension age going up and runaway inflation boosting assets limits. Lots of things to do with the pension will change on 1 July 2023.

Pension age

First up, the pension age will be 67 on 1 July.

If you turn 66-and-a-half on 30 June, you’ll be able to claim the pension from that day. But if you turn 66-and-a-half on 1 July, you will have to wait until 31 December.

It will be interesting to see how long it will take for the push to make the pension age 70 to take off now that 67 has been established. Already the Daily Telegraph has covered a new report by Macquarie University’s Business School, which says Australia’s pension system will require a pension age of 70 to be affordable.

Pension assets limits

1 July is also the date on which assets limits related to the pension are indexed. That isn’t usually a big deal, but this time round it is worth noting that rampant inflation is having an effect on assets limits.

The lower assets test

Probus members visit flood towns

Last month some of our members and friends of Probus enjoyed an overnight bus trip out to some of the areas that have been flooded.

We had morning tea at Eugowra and were overwhelmed at the destruction that the floods incurred on the township. We then travelled to Forbes for lunch and a visit to Woolerina and the Motor Museum, both great places to visit.

It was then off down the Lachlan Way to see the Sculptures and the Utes in the paddock that are now on the outskirts of Condobolin, both are absolutely amazing. Morning tea was at Gum Bend Lake another wonderful tourist destination, and lastly a stop at the Parkes Telescope.

This month our meeting is on Tuesday 11 July, 10am at the Coach House, and our guest speaker is Cheryn Johnson from HealthOne.

New members and guests are always welcome to come and join us for some fun, friendship and fellowship.

Vegie Grower's Diary

It's wet and cold and the most sensible thing to do is to stay indoors. This makes July the perfect time to put pen to paper and take stock of what seeds you need for the upcoming spring.

with Stephanie Hall

If you’re new to growing veg there’s a few things to think about before you buy seeds, like: what kind of seeds you want to plant and where you would like to source them from.

Seeds can generally be divided into four categories: Genetically Modified (Commonly referred to as GMO); Hybrid (F1); Open Pollinated; and Heirlooms.

limit for couples, which was $419,000, will increase to $451,500, up almost 8 per cent.

It means a $50 a week pension increase for pensioner couples with between $451,500 or $954,000 in assets. This is not because the pension is going up, but because they will now qualify for a full pension or a higher part pension.

For anyone with assets up to $419,000 there will be no pension increase, because they were already on a full pension.

The higher assets limit will also increase substantially, from $954,000 to $986,500. Self-funded retirees with assets above $954,000 up to $986,500 will now be able to claim a part pension.

It’s a similar story for single pensioners. The lower assets limit will increase from $280,000 to $301,750. The higher assets limit has increased from $634,750 to $656,500.

The maximum rise in pension payments for singles as a result of this will be $32.50 per week.

Deeming rates and income free areas

The pension deeming rates themselves are on hold until 1 July 2024, but the deeming thresholds will increase on 1 July 2023. The singles’ threshold will go up from $56,400 to $60,400, while the couples’ threshold will go up from $93,600 to $100,200.

Because the pension income-free areas are also going up (from $190 per fortnight to $204 for singles; from $336 per fortnight to $360 for couples), the vast majority of pensioners will continue to not be affected by deeming rates. This is because deemed income from financial assets will mostly not exceed the income-free area.

However, with interest rates going the way they have been, it’s very likely that after 1 July 2024 the deeming rates will increase. By how much nobody knows.

There are many ethical and moral issues associated with the creation of GMO seeds. GMO’s are not available to the home gardener so I won't be discussing them today.

Hybrid seeds come from a cross between two different varieties within the same plant family. Seed companies create hybrid seeds by cross-breeding the plants, sometimes in a forced way.

It does not involve genetic modification but, on this scale, it is not occurring naturally either. Hybrid seeds grow in a predictable way, often with desirable traits. However, they do not breed true.

This means that if you attempt to save seeds from a hybrid plant they could have any mixture of genes from the original 'parent' plants and may result in an undesirable harvest.

Seed and seedling labels should always indicate if they are hybrid and will often have the symbol ‘F1’ after the variety name. Open pollinated seeds are the traditional and natural seeds produced by plants. If grown in isolation from other varieties, within the same family, these plants will breed true seed.

An Heirloom is simply an open pollinated seed that has been around for 50 years or more. Heirlooms have been shared and passed down through the generations.

Seed saving is an important aspect of my gardening so I mostly grow open pollinated and heirloom varieties but I have grown many F1 varieties as well.

Unfortunately, it can be really hard to find information on where some major seed companies source their seeds. Many seeds we buy in packets are shipped from other countries.

Imported seeds must come through quarantine and have a phytosanitary certificate from the exporting country to reduce the risk of importing disease. For this reason it is important that gardeners do not attempt to buy seed directly from an overseas supplier.

Fortunately there are many small seed companies that grow their own open pollinated and heirloom seeds in Australia. Often the company will be owned by the grower themselves. To help maintain a large amount of varieties these companies often pay other gardeners to grow seed in their backyards too. Local seed is fresher, less travelled and often grown by someone who is available for you to contact directly for gardening advice.

You can learn all sorts of things by researching seeds and the people who grow them enhancing your growing experience.

Once you have done all your research it's time to focus on what varieties you and your family would like to grow and that is where the fun begins!