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Christmas wait to see if pensions will be cut

Many pensioners won't know until the weeks before Christmas if they'll have cuts made to their pensions.

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Source: AAP



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Nearly 700,000 pensioners will find out close to Christmas if they'll face cuts to their pensions because of their investments.

A new assets test will come into effect on January 1, but News Corp Australia reports that letters confirming individual cases won't be sent until the weeks before Christmas.

The pension will be cut by $3 a fortnight for every $1000 of assets beyond the new thresholds.

Human Services Minister Alan Tudge says those likely to be affected will be sent a first letter in the coming weeks, as will those just outside the threshold.

"It will outline the new assets thresholds. In December, another letter will be sent to those impacted with specific details on how their payment will change," he told News.

Pensioners can use an online tool to estimate the impact.

The asset-free area will be $375,000 for homeowner couples; $450,000 for single non-homeowners, and $575,000 for non-homeowner couples.

Around 166,000 pensioners will receive a modest increase, but the majority of the four million pensioners will not be affected.


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