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Age Pension Payment Rates and Eligibility

Age Pension Rates and Asset and Income Eligibility Tests - Australian Residents

The Australian Government's Age Pension is designed to provide income support for eligible older Australians and is indexed twice each year, in March and September. Your eligibility is assessed on the basis of your age, residency status and an assessment of your income and assets.

Age Pension Rates from March 20, 2022 to September 19, 2022

Taxable income
Partnered (Each)
Maximum Rate per fortnight
Maximum Pension Supplement
Energy Supplement
Total Fortnightly Rate
Total Annualised Rate

Qualifying for an Aged Pension

To qualify for the Age Pensions, you must:

  • Be an Australian resident and reside in Australia on the day that you lodge your claim (you also need to meet the 10-year qualifying Australian residence requirements), and
  • Be of eligible age - with the eligibility age gradually increasing to 67 for both men and women, as per the table below:
If your birthdate is: You will be eligible at age:
1/7/1952 to 31/12/53 65 years and 6 months
1/1/1954 to 30/6/1955 66 years
1/7/55 to 31/12/56 66 years and 6 months
From 1/1/1957 67 years

Income and Asset Tests

Your age pension entitlement is calculated by reference to how much other income you receive (the "Income Test") and how much your assets are worth (the "Assets Test"). You can have a certain amount of income and assets and still receive the maximum rate Age Pension; but if your income or assets exceed certain thresholds then your Age Pension reduces on a sliding scale. Note that the Test that results in the lowest payment rate will apply.

Age Pension Income Test

Most types of income ("assessable income") are taken into account when determining your Age Pension entitlement, including:

  • Financial investments (including money in super funds if you have reached age pension age);
  • Employment income (if you are still working); including amounts salary sacrificed into super
  • Income from sole trader or partnership businesses
  • Distributions or dividends from private trusts and private companies
  • Real estate income, including income from rental properties, boarders or lodgers
  • Income from outside Australia, including non-Australian pensions

Some financial investments (eg. term deposits, shares, managed funds) are "deemed" to earn a certain rate of income, regardless of what they are actually earning. This is referred to as "deeming" and the rate has been very topical recently, given historically low interest rates).

Current Annual deeming thresholds and rates, effective 1 July, 2022 are as follows:

Single Couple Rate
First $56,400 First $93,600 0.25%
Over $56,400 Over $93,600 2.25%

During the Federal election campaign in May 2022 both Liberal and Labor parties committed to maintaining the above deeming levels for 2 years to offset the impact of higher interest rates on pensioners - presumably this means the rates will now remain static until January, 2024.

Income Test Thresholds (Residents) effective 1 July, 2022 - Fortnightly Income figures

  Full Pension Part Pension No Pension
Single Up to $180 Between $180 and $2,165.20 More than $2,165.20
Couple Combined Up to $320 Between $320 and $3,3132.60 More than $3,3132.60
Illness separated (couple combined) Up to $320 Between $320 and $4,286.40 More than $4,286.40

Individual pensioners from July 1, 2019 have also been able to earn up to $300 a fortnight from "personal exertion" without it counting towards the Age Pension Income test - this is called the Work Bonus.

Age Pension Assets Test

The value of the various assets you own are taken into account when determining your Age Pension entitlement. Generally, the value of the assets is based on what you would receive for them if you sold them at market value.

Assessed assets include (but are not limited to):

  • Real estate assets (excluding your principal home – unless it is used to conduct a business or it is on more than 2 hectares of land)
  • Life interests (eg. where you transfer an asset to another person but retain an interest in the asset)
  • Retirement village entry contributions – if you pay less than the threshold (currently, $224,500), you are considered to be a non-homeowner and your entry contribution is included in the assets test. The threshold is called the "extra allowable amount" (EAA) and is the difference between the asset limit for home owners and non-home owners
  • Financial investments
  • Superannuation investments (super owned by you or your partner is included in your asset test if the owner is over age pension age)
  • Income streams
  • Business assets
  • Funeral investments (although there are a range of different funeral investments that may be either partially or fully exempt from the assets test)

Asset Test Thresholds effective July 1, 2022

    Full Pension: Assets less than Part Pension: Assets between No Pension if Assets exceed
Single Homeowner $280,000 $280,000 and $609,250 $609,250
  Non-Homeowner $504,500 $487,000 and $833,750 $833,750
Couple (combined) Homeowner $419,000 $419,000 and $915,500 $915,500
  Non-Homeowner $643,500 $621,500 and $1,140,000 $1,140,000
Illness separated (couple combined) Homeowner $419,000 $419,000 and $1,077,500 $1,077,500
  Non-Homeowner $643,500 $621,500 and $1,302,000 $1,302,000

Determining whether you are entitled to a pension and to what amount can be complicated, and the above summary and scenarios are a useful guide but may not be all inclusive. We also have an Age Pension Calculator available to assist in determining your eligibility and entitlement to a pension.

Both the commentary above and our calculator should be read in conjunction with the information on The Australian Government's Department of Human Services website.

Note also there are several strategies you could consider which may help you optimise your income and asset base to ensure you are entitled to the maximum Age Pension possible.

If you would like to arrange professional advice in relation to the above matters, please complete the Inquiry form below providing details and you will be contacted accordingly. You will receive a fee quotation in advance of any advice or services being provided.

Please note prior to making any Inquiry: Financial regulations regarding the provision of specific advice mean that it is impossible for us to provide assistance unless it is provided as part of professional advice for which fees will apply. If your circumstances are not complex and don't require paid professional advice you should direct any queries in relation to the Age pension directly to Centrelink.