Technical update: Medicare levy thresholds, AWOTE, MPIR, and Minimum pension payments (Tasman v2)

17 June 2021 (Tasman v2)

Release overview

Don't forget to refresh your case results

The changes below will apply to all cases that are solved on or after 17 June 2021 (irrespective of the case creation date).  If your scenario was solved before the release date of 17 June 2021, you can update your results by clicking 'Start solve' again.  It is recommended that you re-solve all scenarios in active cases so your results are using the same technical data and are consistent. For more information, see How to check when your results were created.

Technical update

The following changes are now available in Pathfinder:

Medicare Levy Thresholds

The Medicare levy low-income thresholds are increased for individuals, families, and seniors and pensioners from 1 July 2020 (start of 2020/21), in line with the 2021/22 Budget.

Average weekly ordinary time earnings (AWOTE)

Forecasts for AWOTE have decreased. In 2024, AWOTE is 2.5%, then from 2025 onwards will be 2.75%. Previously, AWOTE was forecasted to be 3% onwards from 2024.

Maximum permissible interest rate (MPIR) for Aged Care

The maximum permissible interest rate (MPIR) for Aged Care has been decreased from 4.1% to 4.01% to be in line with the latest 1/04/2021 to 30/06/2021 figure published by The Australian Government’s Department of Health.

Minimum pension payments for account-based pensions

The halving of the minimum pension payment for account-based pensions will be extended to 2021/22, then return to normal in 2022/23, in line with the Prime Minister’s 29 May 2021 announcement that will come into effect on 1 July 2021.