How Much Is the Australian Age Pension?

The Australian Age Pension is a government payment providing financial support to eligible older Australians. It offers a baseline income, contributing to the financial security of retirees. This pension helps cover essential living expenses for those who meet specific age, residency, income, and asset requirements.

Who Can Receive the Pension?

To receive the Australian Age Pension, individuals must meet eligibility requirements. A primary condition is reaching the qualifying age, currently 67 years for those born on or after January 1, 1957.

Applicants must be Australian residents and present in Australia on the day their claim is lodged. A typical requirement is having been an Australian resident for at least 10 years in total, with at least five of these years being continuous. Exceptions exist for those who have lived or worked in countries with social security agreements, or for refugees. Eligibility also depends on meeting specific income and assets tests, which determine the pension amount.

Maximum Pension Rates

Maximum Age Pension amounts vary by living situation. As of March 20, 2025, a single person can receive up to $1,149.00 per fortnight. For couples living together, the combined maximum rate is $1,732.20 per fortnight ($866.10 per person). Couples separated due to illness each receive the single rate, totaling $2,298.00 per fortnight.

These rates include the basic pension and supplementary payments like the Pension Supplement and Energy Supplement. Homeownership status does not directly alter these rates, but it influences the assets test, where different thresholds apply for homeowners versus non-homeowners, indirectly affecting the final pension amount.

How Income Affects Your Pension

The Age Pension income test is a key factor in determining an individual’s pension entitlement. This test assesses all sources of gross income against certain thresholds; exceeding them reduces the pension amount. Income considered includes employment earnings, certain superannuation withdrawals once Age Pension age is reached, investment income, and deemed income from financial assets. Even income from overseas sources is included in this assessment.

Specific income free areas allow a certain amount before the pension decreases. From July 1, 2025, a single person can earn up to $218 per fortnight, and a couple up to $380 combined, without affecting their pension. For every dollar above these areas, the pension reduces: 50 cents per dollar for singles, and 25 cents per dollar for each partner in a couple.

For financial investments (e.g., bank accounts, shares, managed funds, superannuation at Age Pension age), deeming rules apply. Centrelink estimates income based on asset value using set deeming rates, rather than actual income. As of July 1, 2025, for a single person, the first $64,200 of financial assets is deemed to earn 0.25%, and amounts above this earn 2.25%. For couples, the first $106,200 of combined financial assets is deemed to earn 0.25%, with amounts exceeding this at 2.25%. This deemed income adds to other sources for total assessable income.

The Work Bonus allows pensioners to earn up to $300 of employment income per fortnight without it being counted, with an accumulated balance up to $11,800.

How Assets Affect Your Pension

The Age Pension assets test evaluates an individual’s total asset value to determine eligibility and pension rate. This test includes real estate (excluding the principal home), vehicles, household contents, and financial investments. The value assessed is generally what the assets would fetch if sold at market value.

Certain assets are typically exempt from this test. The primary residence, including surrounding land up to two hectares, is generally not counted. Other exempt items may include pre-paid funeral expenses, certain accommodation bonds paid to aged care facilities, and specific compensation or NDIS payments. Gifts exceeding certain limits can, however, still be counted as assets for a period of five years.

Asset thresholds differ by homeownership and relationship status. From July 1, 2025, a single homeowner can have assets up to $321,500 for a full pension; a single non-homeowner up to $579,500. For couples, the combined asset limit for a full pension is $481,500 for homeowners and $739,500 for non-homeowners. Exceeding these thresholds reduces the pension by $3 for every $1,000 over. Higher asset cut-off points exist where no pension is payable; for example, a single homeowner may receive a part pension until assets reach $704,500.

Calculating Your Final Pension Amount

Determining the Age Pension amount involves a comprehensive assessment of both income and assets tests. Services Australia applies both tests to an applicant’s financial situation. The test resulting in the lower pension payment dictates the amount received. For example, if the income test suggests $500 per fortnight and the assets test suggests $400, the individual receives $400.

Several other factors can influence the final pension amount. Living overseas can impact payments, with changes after specific durations, such as six or 26 weeks, potentially affecting supplementary payments. A two-year waiting period may apply for those returning to Australia before full pension portability is restored if they travel overseas again.

Notifying Services Australia of any changes in income, assets, living arrangements, or relationship status is important to ensure accurate payment. If a partner is not yet of Age Pension age, their superannuation may be exempt from testing, which can benefit the eligible partner’s pension. The final pension amount is the maximum rate, adjusted downwards by any reductions stemming from the applicable means test and other personal circumstances.