Who Can Claim the Age Pension
A person may be eligible for the Age Pension if they meet all three of the following tests.
01They have reached Age Pension age. Men and women can apply once they reach age 67.
02They satisfy the residency requirements. A person must usually have been an Australian resident for at least 10 years, with at least five of those years in one continuous period. Agreements with some countries may help a person qualify with less than 10 years — this can be checked with Centrelink.
03Their income and assets are below the cut-off thresholds. Both means tests are applied, and the one producing the lower payment is the one that counts.
Current Age Pension Rates
Below are the maximum Age Pension rates per fortnight from 20 September 2026. If eligible, you are entitled to the maximum amount when you are under both the assets test and income test thresholds. Income and assets above those thresholds begin to reduce your entitlement.
Scroll table →
| Per fortnight | Single | Couple each | Couple combined | Couple apartdue to ill health |
|---|---|---|---|---|
| Maximum basic rate | $1,135.40 | $855.90 | $1,711.80 | $1,135.40 |
| Pension Supplement | $88.20 | $66.50 | $133.00 | $88.20 |
| Energy Supplement | $14.10 | $10.60 | $21.20 | $14.10 |
| Total | $1,237.70 | $933.00 | $1,866.00 | $1,237.70 |
Figures for a couple apart due to ill health are the amount payable to each member of the couple.
Income and Assets Tests
If you are eligible to apply, the amount of pension payable is calculated under two separate means tests — the income test and the assets test. The two calculations are run in parallel, and the test that results in the lower rate of payment is the one that applies.
Age Pension Assets Test
Assessable assets are the assets Centrelink counts when working out your Centrelink or Veterans’ Affairs entitlement. Centrelink assesses most assets you own, but some are not counted — most notably your principal residence. Assets are assessed at net market value, and superannuation in accumulation phase is exempt while you are under Age Pension age.
| Status | Homeowner | Non-homeowner |
|---|---|---|
| Single | $333,000 | $600,000 |
| A couple, combined | $499,000 | $766,000 |
| A couple, separated due to illness, combined | $499,000 | $766,000 |
| A couple, one partner eligible, combined | $499,000 | $766,000 |
Your pension is reduced by $3.00 per fortnight (single or couple combined) for each $1,000 of assets above the threshold.
| Status | Homeowner | Non-homeowner |
|---|---|---|
| Single | $745,750 | $1,012,750 |
| A couple, combined | $1,121,000 | $1,388,000 |
| A couple, separated due to illness, combined | $1,324,500 | $1,591,500 |
| A couple, one partner eligible, combined | $1,121,000 | $1,388,000 |
No pension is payable once assets reach these upper cut-off thresholds. Part pension cut-offs may be higher where Rent Assistance applies.
When the thresholds change. The lower (full pension) thresholds are indexed on 1 July each year. The cut-off (part pension) thresholds also increase in March and September in line with pension increases.
Read more on the Assets Test here.
Age Pension Income Test
Assessable income is the income Centrelink counts when working out your entitlement, including deemed income from financial assets. All income sources are included, and for a couple the income of both partners is combined. Assessable income may not be the same as your actual income or your taxable income — specific rules apply to some investments, the most common being deeming.
| Status | Income free areaper fortnight | Income limitper fortnight |
|---|---|---|
| Single | $226.00 | $2,701.40 |
| A couple, combined | $396.00 | $4,128.00 |
| A couple, separated due to illness, combined | $396.00 | $5,346.80 |
The Work Bonus or Rent Assistance may change some cut-off points.
How the reduction works. If your income, including deemed income, is below the income free area, the full Age Pension is payable under the income test. Above it, the pension is reduced by $0.50 per fortnight (single or couple combined) for each $1.00 of income over the threshold — which for a couple is 25 cents each. No pension is payable once income reaches the income limit.
Read more on the Income Test here.
Deeming
Deeming is how Centrelink works out the income from your financial assets. Rather than tracking what each investment actually earns, it assumes those assets earn a standard rate of return. That deemed amount is then added to your other assessable income under the income test.
Scroll table →
| Status | Assets at the lower rate | Lower rate | Amount above the threshold | Upper rate |
|---|---|---|---|---|
| Single | First $66,800 | 1.75% p.a. | Over $66,800 | 3.75% p.a. |
| Couple, at least one receives a pension | First $110,600 combined | 1.75% p.a. | Over $110,600 combined | 3.75% p.a. |
What counts as a financial asset. Common examples include savings accounts, term deposits, managed investments, family loans, listed shares, some income streams and some gifts.
Earning more than the deemed rate. If your actual investment return is above the deeming rate, the extra return is not counted as income for this purpose.
Selling the family home. Sale proceeds from a principal home may be deemed. Proceeds intended for a new principal home are deemed at the lower rate while they remain covered by the asset exemption rules.
Centrelink and Gifting
Gifting money to family members reduces your assessable assets, and the income assessed on them, which may increase your Centrelink or DVA payments. There are limits, however, on how much you can give away before the excess continues to be assessed as though you still held it.
| Rule | Current treatment |
|---|---|
| Annual gifting free area | $10,000 in one financial year |
| Five-year limit | $30,000 over five financial years, and this cannot include more than $10,000 in a single financial year |
| If the limits are exceeded | The excess is counted in the assets test and is deemed under the income test |
| Assessment period | The excess is assessed for five years from the date of the gift |
| Singles and couples | The gifting free areas are the same for a single person as for a couple |
What counts as a gift. A gift can include transferring an asset, selling an asset for less than market value, forgiving a debt, or otherwise receiving less than adequate consideration. An amount gifted above the limits is treated by Centrelink as a deprived asset.
Pensioner Concession Card
A Pensioner Concession Card is available if you receive the Age Pension, and entitles you to reduced-cost medicines under the Pharmaceutical Benefits Scheme.
You may also be entitled to concessions from the Australian Government, which can include bulk billing for doctor’s appointments (at your doctor’s discretion), higher refunds for medical expenses through the Medicare Safety Net, and assistance with hearing services.
State and territory governments and local councils offer further concessions, which can include reductions on property and water rates, reductions on energy bills, reduced fares on public transport, reductions on motor vehicle registration, and free rail journeys.
If you are not eligible for the Age Pension and Pensioner Concession Card, you may be eligible for the Commonwealth Seniors Health Card.
Other Entitlements
A Pension Supplement is added to the pension payable to help with living expenses. A person renting a home may also be eligible for Rent Assistance to help with the cost of renting. The Work Bonus allows pensioners to earn a limited amount of employment income before it affects the income test.
Keeping Centrelink Updated
If you are receiving the Age Pension, Centrelink must be advised of all changes to your personal and financial circumstances. This includes switching investments, gifting money, and changes to your living or relationship circumstances. Failing to notify a change can lead to an overpayment that has to be repaid.
Applying for and receiving the Age Pension is one part of a wider retirement plan. Small changes — how assets are held, when a gift is made, the structure of an income stream — can move an entitlement meaningfully in either direction, and the interaction between the two tests is rarely obvious from the tables alone.
At Progressive Financial Solutions we offer tailored, holistic retirement planning to help our clients fund the retirement lifestyle they want. You can read more about our retirement planning services here.
Disclaimer
This page has been prepared by Progressive Financial Solutions Pty Ltd (ACN 113 321 814), Corporate Authorised Representative No. 334022 of Alliance Wealth Pty Ltd (ABN 93 161 647 007, AFSL 449221). The information provided is general advice only and has been prepared without taking into account your objectives, financial situation or needs. Rates, thresholds and rules shown are those effective 20 September 2026 and are indexed from time to time; you should confirm current figures with Services Australia before acting. Before acting on any information on this page, you should consider its appropriateness having regard to your own objectives, financial situation and needs, and seek personal financial advice from an appropriately qualified adviser. Whilst all care has been taken in the preparation of this material, no warranty is given in respect of the information provided, and neither Progressive Financial Solutions Pty Ltd nor Alliance Wealth Pty Ltd, nor their related entities, employees or agents, accept any liability for any loss or damage arising from its use.