Australian Age Pension Guide 2026: Eligibility, Rates, Income & Assets Test Calculator
Australians aged 67 or older who meet the residency, income and assets tests may qualify for the Age Pension.
From July 2026, the maximum payment is $1,200.90 per fortnight for singles and $905.20 per fortnight for each member of a couple. The final payment depends on both the income and assets tests.
📋 Quick Summary — Age Pension (July 2026)
| Eligibility age | 67 years old |
| Maximum rate (single) | $1,200.90 per fortnight (~$31,223/year) |
| Maximum rate (couple, each) | $905.20 per fortnight (~$23,535/year each) |
| Assets test — full pension (single homeowner) | Under $333,000 |
| Assets test — cut-off (single homeowner) | $733,500 |
| Income test — free area (single) | $226 per fortnight |
| Income test — cut-off (single) | $2,627.80 per fortnight |
| Next indexation | 20 September 2026 |
When my parents were approaching retirement age, they assumed the Age Pension would simply kick in automatically once they turned 67. It doesn't — you need to apply, and the means testing rules are more nuanced than most people expect. My father had modest super savings and no investment property, so he qualified for a part pension without realising it. My mother, who'd worked part-time for most of her career, qualified for the full rate.
Whether you're planning ahead or approaching retirement now, understanding how the Age Pension works — the eligibility rules, the means tests, and how to maximise your entitlement — is worth the time. Here's how it actually works in 2026.
What Is the Age Pension?
The Age Pension is a regular fortnightly payment from the Australian Government to help eligible older Australians meet their living costs in retirement. It's administered by Services Australia (Centrelink) and is means-tested — meaning the amount you receive depends on your income and assets, not just your age.
Most Australians who qualify receive either a full pension (the maximum rate) or a part pension (a reduced rate based on means testing). Some people are ineligible entirely if their income or assets exceed the cut-off thresholds.
Eligibility Requirements
To be eligible for the Australian Age Pension you must have reached Age Pension age (which depends on your date of birth but is now 67), satisfy Australian residency rules, and pass both an income test and an assets test.
Age requirement
The Age Pension age is currently 67 for anyone born on or after 1 January 1957. This has been gradually increasing since 2017 and is now at its final legislated level.
Residency requirement
You must be an Australian resident and physically in Australia when you claim. You also generally need to have been an Australian resident for at least 10 years in total, with at least 5 of those years being continuous. There are some exceptions for people from countries with social security agreements with Australia.
Current Payment Rates — July 2026
Payment rates remain unchanged until September (Max Single: $1,200.90/fn, Max Couple: $905.20/fn each). The next indexation occurs on 20 September 2026.
| Situation | Per fortnight | Per year (approx.) |
|---|---|---|
| Single | $1,200.90 | ~$31,223 |
| Couple (each) | $905.20 | ~$23,535 each |
| Couple (combined) | $1,810.40 | ~$47,070 combined |
| Couple (illness separated, each) | $1,200.90 | Single rate applies |
These rates include the Pension Supplement ($83.40/fn for singles) and Energy Supplement ($14.10/fn for singles). The maximum rate is indexed twice yearly — in March and September — based on movements in the Consumer Price Index (CPI), the Pensioner and Beneficiary Living Cost Index, or Male Total Average Weekly Earnings (MTAWE), whichever is highest.
The Two Means Tests — How Centrelink Calculates Your Payment
Centrelink runs both an income test and an assets test, then pays you based on whichever produces the lower pension amount. You can't choose which test applies — both are run and the lower result determines your payment.
The Income Test
Singles can earn up to $226.00 per fortnight before their pension is reduced (by 50 cents for every dollar over the limit). The absolute cut-off is $2,627.80. Couples (Combined) can earn up to $396.00 per fortnight before the pension is reduced (by 25 cents per person for every dollar over the limit). The absolute cut-off is $4,016.80.
| Situation | Free area (no reduction) | Pension cut-off |
|---|---|---|
| Single | $226/fn | $2,627.80/fn |
| Couple (combined) | $396/fn | $4,016.80/fn |
Deeming — How Financial Assets Are Counted
For financial assets (bank accounts, shares, super in accumulation phase, managed funds), Centrelink doesn't count actual income earned — it uses deeming rates, which assume your financial assets earn a set rate regardless of what they actually earn:
| Financial assets (single) | Deeming rate |
|---|---|
| First $62,600 | 0.25% per year |
| Above $62,600 | 2.25% per year |
For couples, the lower deeming rate applies to the first $103,800 of combined financial assets. This means even if your savings account earns 5%, Centrelink only counts 2.25% — which can be significantly more favourable in a high-interest environment.
The Assets Test
To qualify for a full Age Pension as a single person your assets must also be valued below $333,000 if you own your own home, or $600,000 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 $733,500 if you own your own home, or $1,000,500 if you don't own your own home.
| Situation | Full pension (assets below) | Part pension (assets below) |
|---|---|---|
| Single — homeowner | $333,000 | $733,500 |
| Single — non-homeowner | $600,000 | $1,000,500 |
| Couple — homeowners (combined) | $499,000 | $1,102,500 |
| Couple — non-homeowners (combined) | $766,000 | $1,369,500 |
Age Pension Estimator — July 2026
Not sure how much you could receive? Use the estimator below with the July 2026 thresholds to compare the income test and assets test results.
👴 Age Pension Estimator — July 2026
Estimate your fortnightly Age Pension based on income and assets. Uses July 2026 thresholds.
Income test result
$1,200.90/fn
Assets test result
$1,200.90/fn
Annual pension (approx.)
$31,223
Deemed income on financial assets
$2,035/year
counted in income test
Estimate only. Uses July 2026 thresholds. Does not account for Work Bonus, deeming on super income streams, overseas income, or complex asset structures. Always verify with Services Australia or a financial adviser.
How to Apply
You can apply for the Age Pension up to 13 weeks before you reach Age Pension age — this is called lodging an "early claim." The payment won't start until you actually turn 67, but lodging early means Centrelink has time to process your claim and you won't miss any payments.
- Make sure you have an active myGov account.
- Link Centrelink to your myGov account.
- Prepare proof of age and Australian residency.
- Have your bank account details ready.
- Collect complete information about your income, superannuation and assessable assets.
- Go to myGov → Centrelink → Make a claim → Age Pension.
- Submit the claim and respond promptly if Centrelink requests more information.
Common Questions
Related Articles
Sources: Services Australia — Age Pension, Services Australia — Assets Test, Services Australia — Income Test
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