⚠️ IMPORTANT DISCLAIMER: This guide provides general educational information only and does not constitute financial advice. Age Pension eligibility and entitlement depend on individual circumstances. Always consult a licensed financial adviser or contact Services Australia directly for advice specific to your situation. We are not licensed to provide financial product advice under the Corporations Act 2001.
The Age Pension is a government payment for older Australians who meet age and means test requirements. As of 2025-26, the maximum fortnightly rate is $1,116.30 for singles and $1,682.80 for couples combined.
This educational guide explains general eligibility requirements, payment rates, and how means testing works. For specific advice on your entitlement, consult Services Australia or a licensed financial adviser.
📋 Table of Contents
Age Pension Eligibility Requirements
To qualify for the Age Pension in Australia, you must meet three main criteria:
1. Age Requirements
Your eligibility age depends on your date of birth:
| Date of Birth | Age Pension Age |
|---|---|
| Before 1 July 1952 | 65 years |
| 1 July 1952 - 31 Dec 1953 | 65.5 years |
| 1 Jan 1954 - 30 June 1955 | 66 years |
| 1 July 1955 - 31 Dec 1956 | 66.5 years |
| From 1 Jan 1957 | 67 years |
2. Residency Requirements
- 10 years residence: Must have been an Australian resident for at least 10 years
- 5 years continuous: At least 5 of those years must be continuous
- Currently in Australia: Must be in Australia when applying
💡 Exemptions: Some exemptions exist for refugees, former Australian residents returning, and in cases of severe financial hardship. Contact Services Australia for details.
3. Means Testing
You must pass both an assets test and an income test. Your pension is calculated under both tests, and you receive the lower of the two amounts.
Age Pension Payment Rates 2025-26
Maximum Fortnightly Rates (2025-26)
- Single: $1,116.30 per fortnight ($29,024 per year)
- Couple (each): $841.40 per fortnight
- Couple (combined): $1,682.80 per fortnight ($43,753 per year)
Additional Supplements
| Supplement | Single Rate | Couple Rate (each) |
|---|---|---|
| Pension Supplement | $81.60/fortnight | $61.50/fortnight |
| Energy Supplement | $14.10/fortnight | $10.60/fortnight |
| Rent Assistance (max) | $188.20/fortnight | $177.20/fortnight |
📅 Indexation: Age Pension rates are reviewed twice a year (March and September) and adjusted for inflation based on the Consumer Price Index (CPI) and Male Total Average Weekly Earnings (MTAWE).
Assets Test Explained
The assets test examines the total value of your assets (minus exempt assets like your family home). Your pension reduces by $3 per fortnight for every $1,000 of assets above the free area.
Assets Test Thresholds 2025-26
| Situation | Lower Threshold (Full Pension) | Upper Threshold (No Pension) |
|---|---|---|
| Single, Homeowner | Up to $314,000 | $693,000 |
| Single, Non-homeowner | Up to $566,000 | $945,000 |
| Couple, Homeowner | Up to $470,000 | $1,047,500 |
| Couple, Non-homeowner | Up to $722,000 | $1,299,500 |
What Counts as Assets?
Assessable Assets:
- Superannuation (if over Age Pension age)
- Bank accounts, term deposits, savings
- Shares, managed funds, investment properties
- Cars, boats, caravans (except one primary vehicle)
- Business assets and structures
- Valuable collections, jewellery over $10,000
Exempt Assets:
- Your primary residence (family home)
- Up to 2 hectares of land your home is on
- One motor vehicle (usually the most valuable)
- Personal effects and household contents (generally)
⚠️ Gifting Rules: Giving away assets to qualify for the pension won't work immediately. Centrelink applies a 5-year gifting rule where disposed assets are still counted towards your means test for 5 years.
Income Test Explained
The income test assesses your income from all sources. Your pension reduces by 50 cents for every dollar earned above the free area (Work Bonus can reduce this for employment income).
Income Test Thresholds 2025-26
| Situation | Income Free Area | Cut-off Point (No Pension) |
|---|---|---|
| Single | $212/fortnight | $2,436/fortnight |
| Couple (combined) | $372/fortnight | $3,737/fortnight |
What Counts as Income?
Assessable Income:
- Employment income (wages, salary)
- Account-based pension drawdowns from super
- Deemed income from financial assets (see deeming below)
- Rental income from investment properties
- Foreign income and pensions
- Business income
Exempt Income:
- Tax-free component of super pension (partially)
- Some DVA payments
- Certain compensation payments
💼 Work Bonus: If you're working, you can earn up to $11,800 per year (Work Bonus) that won't count towards your income test. This encourages older Australians to stay in the workforce.
Deeming Rates
Rather than using actual income from financial investments, Centrelink applies "deemed" income rates. This simplifies assessment and prevents manipulation.
Deeming Rates 2025-26
| Asset Type | Threshold | Deeming Rate |
|---|---|---|
| Singles | First $62,600 | 0.25% p.a. |
| Singles | Above $62,600 | 2.25% p.a. |
| Couples (combined) | First $103,800 | 0.25% p.a. |
| Couples (combined) | Above $103,800 | 2.25% p.a. |
Which Assets Are Deemed?
- Bank accounts, term deposits, cash
- Shares, managed funds, ETFs
- Superannuation in pension phase (account-based pensions)
- Loans to others (treated as financial assets)
Example: A single homeowner with $400,000 in super pension receives:
- First $62,600 deemed at 0.25% = $156.50/year
- Remaining $337,400 deemed at 2.25% = $7,591.50/year
- Total deemed income: $7,748/year ($298.77/fortnight)
Common Approaches Some People Consider
⚠️ NOT FINANCIAL ADVICE: The following information describes general strategies some Australians have used. This is educational information only. Every person's circumstances are different. You must seek advice from a licensed financial adviser before implementing any financial strategy. We do not recommend any specific action.
1. Home Ownership Considerations
The family home is exempt from the assets test under current legislation. Homeowners have different asset thresholds ($314,000 vs $566,000 for singles). Some people consider the implications of home ownership on Age Pension entitlement as part of their overall retirement planning.
2. Gifting Rules (For Information Only)
Centrelink applies a 5-year rule to gifted assets. The general gifting limit is $10,000 per year or $30,000 over 5 years before amounts are assessed. This is factual information about Centrelink rules, not a recommendation to gift assets.
3. Asset Allocation Options
Some people explore how different uses of super affect Age Pension entitlement, such as:
- Paying off mortgages (reduces debt, changes asset position)
- Home renovations (family home is exempt)
- Prepaid funeral arrangements (may have exemptions)
Important: Any such decisions have complex tax and legal implications and require professional financial advice.
4. Timing Considerations
Super is generally not assessed under the assets test until Age Pension age is reached. How and when you access super can affect future Age Pension entitlement. This is complex and requires personalized advice from a licensed professional.
5. Couples and Asset Distribution
For couples with different ages, asset distribution may affect means testing outcomes. This is an area where professional financial advice is essential due to complexity.
⚠️ SEEK PROFESSIONAL ADVICE: All financial decisions should be made with guidance from a licensed financial adviser who understands your complete financial situation, goals, and risk tolerance. Contact Services Australia for Age Pension specific questions.
Calculate Your Age Pension
Understanding Age Pension rules is complex. Our calculator automatically applies all 2025-26 rates, thresholds, deeming rules, and means tests to give you an accurate estimate of your entitlement.
🧮 Free Age Pension Calculator
Calculate your Age Pension entitlement in under 2 minutes. Our calculator uses official 2025-26 rates and handles all means testing automatically.
Calculate Your Pension →Frequently Asked Questions
Can I receive Age Pension if I still work?
Yes! The Work Bonus allows you to earn up to $11,800/year without it affecting your pension. Income above this reduces your pension by 50 cents per dollar earned.
Does my super count towards the assets test?
Super counts towards the assets test once you reach Age Pension age. Before that, it's exempt.
How often can I update my assets and income?
You must notify Services Australia within 14 days of any changes. Your pension will be reassessed accordingly.
Can I receive Age Pension while living overseas?
Generally, yes, but there are limitations on how long you can be overseas and still receive payment. After 26 weeks, your pension may be reduced or suspended depending on your residence history.
What if my partner is younger than pension age?
Your pension is assessed as a couple if your partner is over Age Pension age minus 1 year. Otherwise, you're assessed as a single person with partner income counted.
Summary
The Age Pension provides crucial income support for older Australians, but eligibility and entitlement depend on complex means testing rules:
- ✅ Maximum rates: $1,116.30/fortnight (single), $1,682.80/fortnight (couple combined)
- ✅ Must pass both assets test and income test (lower amount paid)
- ✅ Family home is exempt from assets test
- ✅ Deeming rates apply to financial investments
- ✅ Work Bonus allows $11,800/year earnings
- ✅ Strategic planning can maximize your entitlement
Our calculator provides general estimates based on current rates and rules. For specific advice on your Age Pension entitlement, contact Services Australia on 132 300 or consult a licensed financial adviser.