The Age Pension provides income support for eligible Australians and is indexed twice each year, on 20 March and 20 September, to apply changes in pensioners’ costs of living and community wage increases.
Eligibility is assessed on the basis of your age, residency status and an assessment of your income and assets.
Enquire Now| Pension Income | Single | Couple | Couple (Each) |
| Base Rate | $1100.30 | $1658.80 | $829.40 |
| Pension Supplement | $86.50 | $130.40 | $65.20 |
| Energy Supplement | $14.10 | $21.20 | $10.60 |
| Total Fortnight | $1200.90 | $1810.40 | $905.20 |
| Total Annual | $31,223 | $47,070 | $23,535 |
To qualify for a full Age Pension as a single person, the assets must also be valued below $321,500 if you own your own home, or $579,500 if you don’t own your own home.
You can still be eligible for a part Age Pension if your assets are worth less than $722,000 if you own your own home, or $980,000 if you don’t own your own home.
For a couple to qualify for the full Age Pension, the combined assets must be below $481,500 if you own your own home, or $739,500 if you don’t own your own home.
You can still be eligible for a part Age Pension if your assets are worth less than $1,085,000 if you own your own home, or $1,343,000 if you don’t own your own home.
To qualify for a full Age Pension as a single person your income must be below $218 per fortnight (approximately $5,668 per year), but you can still be eligible for a part Age Pension if you earn less than $2,619.80 per fortnight (approximately $68,115 per year).
For a couple, to qualify for the full Age Pension your combined income must be below $380 per fortnight (approximately $9,880 per year), but you can still be eligible for a part Age Pension if you earn less than $4,000.80 per fortnight (approximately $104,021 per year).
Note: The above thresholds apply 20 March 2026 to 19 September 2026.
Also important to note that you can earn up to $300 per person per fortnight from working and this amount is not included in the Age Pension income test. This is known as the "work bonus".
The Commonwealth made a few changes to this program to make it more attractive for people who have reached Age Pension age to participate in the workforce.
In September 2022, a "temporary" one-off credit of $4,000 was added to the work bonus balance of all existing eligible pensioners. The initial plan was to remove this one-off credit on 1 January 2024. However, in September 2023 the government announced this temporary increase would be made permanent.
This means eligible pensioners can now earn up to $11,800 a year before losing any of their pension. (eg $300 ft x 26 = $7,800 pa plus $4000 equals $11,800 pa)
The Australian Age Pension provides financial assistance to older Australians who have reached Age Pension age and meet the relevant residency, income and assets test requirements. For many retirees, the Age Pension forms an essential part of their retirement income and helps cover everyday living expenses such as food, utilities, housing costs, transport and healthcare.
Although superannuation has become increasingly important for retirement planning, the Age Pension still plays a significant role in supporting millions of Australians. Some people receive the full Age Pension, while others may qualify for a part pension depending upon their financial circumstances.
The pension system can appear confusing because payment rates, income limits and asset thresholds change regularly. Pension supplements and deeming rules can also affect how much you receive. Understanding how the system works can help retirees and families make more informed financial decisions.
Age Pension payment rates are generally reviewed twice each year, usually in March and September. These increases are designed to help pensioners keep pace with inflation and rising living costs.
The Government uses a combination of economic measures when determining pension increases, including:
This indexation process is important because it helps protect pensioners from the impact of increasing prices for essential items such as groceries, electricity, rent, insurance and medical expenses.
Whenever new pension rates are announced, the updated figures generally apply automatically without pensioners needing to submit a new application.
To qualify for the Australian Age Pension, a person generally needs to:
The qualifying age for the pension is currently 67 years for people born on or after 1 January 1957.
In most situations, applicants must also have been an Australian resident for at least 10 years, with at least five of those years being continuous.
Even if a person owns assets or receives other income, they may still qualify for a partial pension payment. Many retirees are surprised to discover that they remain eligible for concessions and reduced pension payments even with substantial savings or superannuation balances.
The Age Pension is made up of several different components. The total fortnightly payment may include:
The Pension Supplement assists with the cost of household expenses such as utilities, phone bills and pharmaceutical costs. The Energy Supplement was introduced to help offset rising energy prices.
These additional supplements are automatically included in the payment for eligible pensioners and can make a noticeable difference to fortnightly income.
The income test measures how much income you receive from various sources. This may include:
If your income exceeds the allowable threshold, your pension payment may reduce gradually. However, earning some additional income does not automatically cancel the pension altogether.
Many pensioners continue working part-time while receiving a pension. The Work Bonus scheme can also help older Australians earn employment income without immediately affecting their pension entitlement.
The assets test assesses the value of assets owned by a pension applicant. Assets can include:
Importantly, the family home is generally exempt from the Age Pension assets test while it remains the principal place of residence.
The amount of pension payable reduces progressively once assessable assets exceed the applicable threshold. Different limits apply depending upon whether a person is single, partnered, a homeowner or non-homeowner.
Many retirees incorrectly assume they are not eligible for any pension support because they own assets. In reality, partial pensions are common and may still provide valuable concession benefits.
The Age Pension becomes particularly important when a person enters residential aged care. Many aged care fees are directly linked to pension rates and Centrelink assessments.
For example, the Basic Daily Care Fee charged by aged care homes is calculated as a percentage of the single Age Pension rate. As pension rates increase, the Basic Daily Care Fee generally increases as well.
A pensioner entering aged care may also need to undergo means testing to determine:
Families often discover that pension rules interact closely with aged care financial assessments. This is one reason why obtaining professional advice can be extremely valuable during the aged care placement process.
Possibly, but not always immediately.
When a family home is sold, the proceeds may become assessable under the assets test after certain exemption periods expire. This can affect Age Pension entitlements and aged care fees.
The timing of a property sale and how sale proceeds are managed can have significant financial consequences. Families should always seek advice before selling a home where aged care is involved.
Yes. Many aged care residents continue receiving the Age Pension. However, the amount payable may change depending on:
Centrelink rules for aged care residents can be complex, particularly for couples where one person remains living in the family home.
Yes. Superannuation can affect pension eligibility depending upon a person's age and whether they are drawing income from their super fund.
For people over Age Pension age, superannuation is generally counted under both the income and assets tests. Income stream products such as account-based pensions are also assessed under deeming rules.
Understanding how superannuation interacts with the pension system is an important part of retirement planning.
Receiving even a small part pension may provide access to valuable concession benefits, including:
For many retirees, these additional benefits can save thousands of dollars each year and are often just as valuable as the pension payment itself.
There are legitimate strategies that may help improve pension outcomes while remaining fully compliant with Centrelink rules.
Some commonly discussed strategies include:
However, pension rules are complex and constantly changing. Financial decisions should never be based solely on general information from the internet. Professional financial advice is strongly recommended before implementing any strategy.
For many older Australians, discussing finances can be stressful and emotional. Concerns about running out of money, paying aged care costs or maintaining independence are extremely common.
Adult children are often heavily involved in helping parents understand pension entitlements and complete Centrelink paperwork. Unfortunately, many families only discover how complicated the system can be when a health crisis or aged care placement suddenly occurs.
Taking the time to understand pension rates, entitlements and aged care costs early can help reduce anxiety and improve long-term planning.
Because pension rates and thresholds change regularly, it is important to monitor updates throughout the year. Changes to Government policy, deeming rates, indexation formulas and aged care legislation can all affect retirement finances.
Many retirees review pension rates every March and September when indexation changes are announced. Families involved in aged care planning should also monitor changes to accommodation payment rules and aged care fee structures.
Staying informed can help retirees make better financial decisions and avoid unexpected surprises.
Navigating the interaction between the Age Pension and residential aged care can be challenging. Understanding RADs, DAPs, means tested fees, pension impacts and Centrelink forms often requires specialised knowledge.
At Aged Care Connect, we regularly assist families to better understand aged care financials, Centrelink implications and residential care costs. Our goal is to help families make informed decisions with greater confidence and reduced stress.
If you require assistance understanding aged care fees, pension implications or residential care placement options, please contact our team for personalised guidance and support.