The Age Pension provides income support for older Australians who meet age, residency, income, and assets criteria. This guide covers the 2026 rates, how the means tests work, and the Work Bonus scheme for pensioners who keep working.
Age Pension Age
| Date of Birth | Pension Age |
|---|---|
| Before 1 July 1952 | 65 years |
| 1 July 1952 – 31 December 1953 | 65 years 6 months |
| 1 January 1954 – 30 June 1955 | 66 years |
| 1 July 1955 – 31 December 1956 | 66 years 6 months |
| From 1 January 1957 | 67 years |
Current Age Pension Rates (2026)
Fortnightly rates are indexed twice yearly (March and September):
| Situation | Maximum Fortnightly Rate | Max Annual (approx) |
|---|---|---|
| Single | $1,200.90 | $31,223 |
| Couple (each person) | $905.20 | $23,535 |
| Couple (combined) | $1,810.40 | $47,070 |
| Couple separated due to illness (each) | $1,200.90 | $31,223 |
Residency Requirements
- You must be an Australian resident on the day you claim
- You must have lived in Australia for at least 10 years in total (with at least 5 consecutive years during this time)
- Some exemptions apply for refugees and those who spent time in certain countries
Income Test
The income test assesses how much you can earn before your Age Pension reduces:
- Single: can earn up to $212 per fortnight before reduction (reduces by 50 cents per dollar over the threshold)
- Couple combined: can earn up to $380 per fortnight before reduction (reduces by 50 cents per dollar)
- Couple separated by illness: each can earn up to $380 per fortnight
Note: The Work Bonus means the first $406 of employment income per fortnight is not assessed under the income test for Age Pensioners of Age Pension age.
Assets Test
| Situation | Homeowner Asset Limit | Non-Homeowner Asset Limit |
|---|---|---|
| Single | $314,000 | $566,000 |
| Couple combined | $469,000 | $721,000 |
| Couple separated by illness | $469,000 | $721,000 |
Your pension reduces by $3 per fortnight for every $1,000 of assets over the limit.
Work Bonus Scheme
The Work Bonus is designed to encourage Age Pensioners to engage in paid work without it reducing their pension:
- The first $406 of employment income per fortnight is not counted in the income test
- Any unused Work Bonus amount accumulates in a Work Bonus balance (up to a maximum of $7,308)
- Accumulated amounts can be used to offset future employment income above the fortnightly threshold
- Work Bonus applies only to employment income, not investment or superannuation income
How to Claim Age Pension
- Create or log in to your myGov account and link Centrelink
- Select "Make a claim" then "Age Pension"
- Complete the online questionnaire providing details about your income, assets, and living situation
- Upload supporting documents (proof of identity, bank statements, superannuation statements, property valuations)
- Submit the claim and track progress in your Centrelink online account
- Processing typically takes 2–6 weeks
Common Age Pension Supplements
- Pension Supplement: included in the base rate (higher for singles)
- Energy Supplement: additional amount to help with energy costs
- Rent Assistance: if you rent privately (no maximum rate for Age Pensioners)
- Pensioner Concession Card: cheaper medicines, bulk billing, and other discounts
- Commonwealth Seniors Health Card: if you don't qualify for Age Pension but meet income limits
Pension Loans Scheme
If you don't qualify for a full Age Pension due to assets (like your home), the Pension Loans Scheme allows you to receive a loan from the Government secured against your property, providing additional income in retirement.
This guide is updated for 2026. Check Services Australia website for latest rates.
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How the Income and Assets Tests Work Together
The Age Pension is means-tested in two ways at once, and the lower result wins. Under the income test, a single pensioner can earn $212 per fortnight before their pension reduces by 50 cents per dollar; couples combined have a $380 free area. Under the assets test, your pension reduces by $3 per fortnight for every $1,000 of assessable assets above the limit. The limits are indexed regularly — as at 2025-26 they were around $314,000 for a single homeowner ($566,000 non-homeowner) and $469,000 for a homeowner couple ($721,000 non-homeowner) — and the March 2026 indexation lifted both the rates and these limits.
A critical mechanism is deeming: your financial investments are assumed to earn a set rate regardless of what they actually earn, so shifting money between bank accounts, shares, and super does not change the income the test counts. From 20 March 2026 the deeming rates rose to 1.25% for the first threshold and 3.25% above it, after a freeze ended. Your family home is generally exempt from the assets test (with a land limit of two hectares), which is why many retirees hold wealth in their home.
Action Plan: Maximise Your Age Pension in 2026
- Claim up to 13 weeks before you turn 67 — the pension can be backdated to your claim date, so don't delay.
- If you still work, use the Work Bonus: the first $406 of employment income per fortnight is not counted in the income test, and unused amounts accumulate in your Work Bonus balance.
- Review your assets before claiming — superannuation in pension phase counts toward the assets test, while your home generally does not.
- If your assets are just over the limit, consider the Pension Loans Scheme, which lets you draw a loan against your home to top up a part pension.
- Re-check your entitlement after each indexation in March and September — thresholds move, and people who were over the limit can become eligible.