What Is the Age Pension?
The Age Pension is a regular fortnightly payment administered by Services Australia through Centrelink that provides financial support to eligible older Australians during retirement. It is one of Australia's most significant social security payments, supporting millions of retirees who do not have sufficient private income or superannuation savings to fund their own retirement independently.
The Age Pension is means-tested, which means both your income and your assets are assessed when determining whether you are eligible and how much you receive. It is not a universal payment — eligibility depends on your personal and financial circumstances as well as your age and residency history. Payments are made fortnightly directly to your nominated bank account.
The Age Pension does not replace financial planning or superannuation — it is designed to provide a baseline standard of living in retirement. Many Australians receive a part Age Pension alongside income from superannuation, investments, or part-time employment. Understanding how the pension interacts with other income and assets is essential for effective retirement planning.
Financial Support in Retirement
Regular fortnightly income for eligible Australians who have reached pension age and pass the means tests
Delivered by Centrelink
Administered by Services Australia — claims are submitted and managed through myGov and Centrelink online services
Means-Tested
Both income and assets are assessed — the test producing the lower payment rate is applied to your pension
Fortnightly Payments
Paid every two weeks to your nominated Australian bank account, automatically adjusted when circumstances change
Linked to Retirement Income
Works alongside superannuation, investments, and part-time work — understanding the interaction is key to planning
Indexed to CPI
Payment rates are adjusted in March and September each year to keep pace with changes in the cost of living
Who Can Get the Age Pension?
To be eligible for the Age Pension, you must satisfy four key requirements: you must have reached Age Pension age, you must meet the Australian residency rules, your income must fall within the allowable limits, and your assets must fall within the allowable thresholds. All four requirements must be met — passing three out of four is not sufficient for a payment to be made.
The income test and the assets test are each applied independently. Centrelink calculates what your payment would be under each test and pays you the lower of the two amounts. If either test results in a payment of nil, you do not receive any Age Pension regardless of the result of the other test.
Use our free Age Pension Calculator to get an indicative estimate of your potential eligibility and payment rate before submitting a formal claim through Centrelink.
Age Pension Eligibility Requirements
The six eligibility criteria for the Age Pension are explained below. All criteria must be satisfied for a payment to be granted. Read each carefully to understand where your circumstances sit.
Age Requirement
You must have reached the qualifying Age Pension age. The current Age Pension age is 67 years for anyone born on or after 1 January 1957. This applies equally to men and women. The pension age was progressively increased from 65 to 67 between 2017 and 2023.
- Current pension age: 67 (born on or after 1 Jan 1957)
- You can submit a claim up to 13 weeks before you turn 67
- Your payment starts on the date you become eligible — not the date you apply
Residency Requirement
You must be an Australian resident — meaning you live in Australia and hold an Australian citizen status, permanent resident visa, or certain protected visa categories. You must also have lived in Australia for at least 10 years in total, with at least one period of 5 years of continuous residence.
- 10 years total Australian residence required
- At least 5 of those years must be continuous
- Refugee and humanitarian visa holders may have different residency rules
- Time spent outside Australia can affect your residency calculation
Income Test
Your gross income from all sources is assessed fortnightly. Below the income-free area, your pension is not affected. Above it, your payment reduces at a set taper rate per dollar of income above the threshold, until it reaches the income cut-off point where no pension is payable.
- All income sources are assessed — employment, investment, super, rental
- A Work Bonus concession applies to employment income specifically
- A couple's combined income is assessed together
- Rates and thresholds are updated — always check current figures with Services Australia
Assets Test
The value of most things you own is assessed. Your principal home is generally exempt from the assets test, but almost everything else is counted — including your superannuation once you reach pension age, financial investments, and other property. Thresholds differ between homeowners and non-homeowners.
- Principal home is generally exempt from assessment
- Different thresholds apply to homeowners vs non-homeowners
- Super in accumulation phase before pension age is not counted
- Payment reduces at a set rate for every dollar of assets over the threshold
Relationship Status
Whether you are single or part of a couple affects both the payment rate and the means test thresholds that apply to you. Centrelink defines a couple broadly — it includes married couples, de facto couples, and some other relationship types. Your partner's income and assets are assessed alongside yours.
- Singles and couples have different payment rates
- A couple's combined income and assets are assessed jointly
- Illness-separated couples may have different arrangements
- If only one partner is pension age, special rules may apply
Special Circumstances
Certain life situations are treated differently by Centrelink when assessing Age Pension eligibility. Understanding these special circumstances can be important for people in more complex situations.
- Overseas pension recipients may have their foreign pension assessed as income
- Certain gifting rules apply — assets given away within 5 years may still be counted
- Some trust and company structures are assessed under special deeming rules
- Granny flat arrangements can affect both income and assets assessments
Use our Age Pension Calculator to estimate how the income and assets tests may apply to your personal circumstances. The calculator is free and provides an indicative estimate — always confirm actual eligibility with Services Australia.
Age Pension Income Test Explained
The income test assesses your gross income from all sources on a fortnightly basis. Understanding what counts as income, what the thresholds mean, and how the taper rate works is essential for planning your retirement income arrangements. For a detailed breakdown, see our full Age Pension Income Test Guide.
How the Income Test Works
Gross assessable income vs the income-free area threshold
The income test works in three bands. In the first band, your income is below the income-free area — your pension is not affected at all. In the second band, your income is above the free area but below the cut-off point — your pension reduces at a set taper rate for every dollar of income above the threshold. In the third band, your income has exceeded the cut-off point and no pension is payable for that fortnight.
For singles, the taper rate is applied to individual income. For couples, the combined income of both partners is assessed together — each partner's payment is then individually calculated based on the combined assessment. The income-free area and cut-off amounts are different for singles versus couples and are updated by the government periodically.
What Counts as Assessable Income?
- Employment income: Gross wages and salary from any employment — the Work Bonus concession allows some employment income to be earned without affecting your pension. The Work Bonus bank accumulates unused amounts up to a cap.
- Self-employment income: Business income and profits from sole trader or partnership activities are assessed as income.
- Investment income: Interest earned on savings accounts and term deposits, dividends from shares, and distributions from managed funds are all counted as assessable income.
- Rental income: Net rental income from investment properties — gross rental income minus allowable expenses — is assessable. This does not apply to your primary home.
- Superannuation income streams: Pension payments drawn from a super fund or annuity are assessed as income. Lump sum withdrawals from super in accumulation phase are generally not income, but they may affect your assets balance.
- Overseas pensions: If you receive a pension from another country, it is typically assessed as income under the income test, and bilateral social security agreements between Australia and certain countries may affect how overseas pensions interact with your Age Pension.
- Deemed income from financial investments: Rather than using actual interest and dividend income, Centrelink applies deeming rules to most financial assets — assuming a set rate of income is being earned regardless of what is actually earned. Deeming rates are set by the government and change over time.
What Is NOT Assessable as Income?
- Capital gains from the sale of assets (though the assets test balance will change)
- Lump sum superannuation withdrawals (assessed under the assets test instead)
- The portion of a super income stream that represents a return of your own contributions (the tax-free component under certain arrangements)
- Inheritances received (though assets held after receipt may be counted as assets)
Age Pension Assets Test Explained
The assets test assesses the total value of most things you own. Unlike the income test, which looks at cash flow, the assets test is about the stock of wealth you hold. See our full Age Pension Assets Test Guide for a comprehensive breakdown of all asset categories.
How the Assets Test Works
Total assessable assets vs the assets-free area threshold
Centrelink calculates the total value of your assessable assets — everything you own that is not explicitly exempt. If your total assets fall below the assets-free area for your situation, your pension is unaffected. Above that threshold, your pension reduces at a set rate per dollar of excess assets until the assets cut-off point is reached, at which point no pension is payable.
Importantly, the thresholds differ depending on whether you are a homeowner or non-homeowner and whether you are single or a couple. Non-homeowners have higher thresholds because they do not have the benefit of the primary home exemption. All four combinations of these two variables produce different threshold amounts.
What Assets Are Assessed?
- Financial investments: Savings accounts, term deposits, shares, managed funds, bonds, debentures — all counted at current market value.
- Superannuation: Super in accumulation phase is counted from the date you reach Age Pension age. Super income streams and account-based pensions are also counted as assets. Super held by a partner under pension age may be treated differently.
- Investment properties: The net market value of any real estate you own other than your primary residence — including holiday homes and investment properties — is counted as an asset.
- Business assets: The value of any business you own or have an interest in is assessed, though specific rules apply depending on the business structure.
- Vehicles, boats, and caravans: Vehicles used for personal transport are counted at their current market value.
- Household contents and personal effects: A deemed value is assigned to household contents — assessed at replacement value for insurance purposes but typically at a modest amount for pension purposes.
- Income streams (non-super): Certain life annuities and income stream products may be partly or fully assessed as assets depending on their structure.
What Assets Are Exempt?
- Principal home: The home you live in is generally exempt from the assets test regardless of its value. The two-hectare limit applies in some rural situations.
- Certain pre-paid funeral expenses: Pre-paid funeral plans and funeral bonds up to a specified limit are exempt.
- Accommodation bonds paid to aged care facilities: Certain accommodation deposits may be exempt depending on the structure.
- Some compensation payments: Compensation amounts received in certain circumstances may be exempt for a defined period.
Gifting rules: If you give assets away — to family members or others — those assets may still be counted under the assets test for up to five years. Gifting above the allowable annual limit is treated as a deprived asset. Plan carefully before making large gifts to family to avoid unintended impacts on your pension.
How to Apply for the Age Pension
Age Pension claims are submitted online through your myGov account linked to Centrelink. Services Australia recommends submitting your claim up to 13 weeks before you reach Age Pension age — this allows your payment to begin on the date you become eligible rather than the date your claim is processed.
Create or Access Your myGov Account
If you do not already have a myGov account, create one at my.gov.au. Your myGov account is free to create and is the central portal for all Australian government online services. If you already have one, simply log in. See our myGov account setup guide for step-by-step instructions if you need help with this process.
Link Centrelink to myGov
Once logged in to myGov, navigate to Services and link Centrelink if it is not already linked. You will need to either enter an existing Centrelink Customer Reference Number (CRN) or create a new Centrelink record. Identity verification is required — this can be completed online using a combination of identity documents or in person at a Services Australia service centre. See our Centrelink guide for detailed linking instructions.
Prepare Your Documents and Information
Before starting your claim, gather all required documents and financial information. The Age Pension claim is one of the most detailed of all Centrelink claims — you will need to provide comprehensive information about your income, assets, superannuation, property, and residency history. Preparing everything before you begin the online form will save time and reduce the risk of submitting an incomplete claim. See the documents checklist below for a full list.
Submit Your Age Pension Claim Online
In myGov, go to your Centrelink account, select Payments and Claims, then Make a Claim, and choose Age Pension. The online claim form will guide you through each section — personal details, residency history, income and assets, and banking information. Upload all required supporting documents directly through the online portal. Once submitted, you will receive a receipt number confirming lodgement.
Track Your Claim Progress
After submitting your claim, log in to myGov regularly to check for updates in your Centrelink inbox. Services Australia will contact you if they need additional information or documents — respond promptly to avoid delays. Processing typically takes 4 to 6 weeks after all required information has been received. See our Age Pension Processing Time Guide for more detail on what affects timelines.
Documents Required for Age Pension
The Age Pension requires more supporting information than most other Centrelink payments because of the comprehensive income and assets assessment involved. Preparing all documents before you begin your claim helps avoid delays and reduces the risk of your application being held pending further information.
🪪 Identity Documents
- ✓Australian passport or Australian birth certificate
- ✓Australian citizenship certificate (if applicable)
- ✓Driver's licence or state-issued photo ID
- ✓Medicare card
- ✓Tax File Number (TFN)
🇦🇺 Residency Evidence
- ✓Evidence of 10 years Australian residence
- ✓Passport showing arrival/departure history if relevant
- ✓Visa grant documentation for permanent residents
- ✓Evidence of overseas residence periods if applicable
💵 Income Information
- ✓Bank account statements (last 3 months)
- ✓Payslips or employer income statements if working
- ✓Rental income records and expenses
- ✓Business financial statements if self-employed
- ✓Overseas pension award letters if receiving foreign pension
🏦 Asset Information
- ✓Superannuation fund balances (all funds)
- ✓Share portfolio and managed fund valuations
- ✓Property valuations for investment properties
- ✓Vehicle registration details and estimated values
- ✓Life insurance policy surrender values
🏠 Property Details
- ✓Title or rates notice for your principal home
- ✓Current market valuation for investment properties
- ✓Mortgage statements showing outstanding balances
- ✓Rental agreements for any rental properties you own
🏧 Banking Details
- ✓BSB and account number of your payment account
- ✓Bank statements for all accounts you hold
- ✓Term deposit certificates showing maturity dates and amounts
- ✓Details of any overseas bank accounts
Age Pension Payment Rates
Age Pension payment rates vary based on your personal circumstances, relationship status, and the results of the income and assets tests. Rates are indexed to the Consumer Price Index (CPI) and the Pensioner and Beneficiary Living Cost Index (PBLCI) and are reviewed and adjusted in March and September each year.
📋 About Age Pension Payment Rates
PublicAccess.au does not publish specific dollar figures for Age Pension payment rates because these amounts change twice a year when they are indexed. Quoting a figure that has since been updated — even by a small amount — can mislead readers planning their retirement finances. For the most current and accurate payment rates, always check directly with Services Australia.
What we can tell you is how payment rates are structured so you understand what to look for when you check the official figures.
Single Rate
A single person receives a higher individual rate than each member of a couple, because they bear all living costs alone
Couple Rate (each)
Each member of a couple receives their own fortnightly payment, at a lower rate per person than the single rate
Pension Supplement
An additional supplement is paid on top of the base pension rate to help with common living costs such as utilities and pharmaceuticals
Energy Supplement
A separate supplement assists Age Pension recipients with energy costs — the amount varies by relationship status and living arrangements
Rent Assistance
Age Pension recipients who rent privately may also be eligible for Rent Assistance on top of their base pension payment
Part Pension
If you exceed the income-free area or assets-free area thresholds but remain below the cut-off, you receive a reduced part pension
Age Pension and Superannuation
Superannuation and the Age Pension are closely intertwined. How you manage your super — the timing of withdrawals, the structure of income streams, and the balance held at Age Pension age — can significantly affect how much Age Pension you receive. Understanding this interaction is one of the most important aspects of Australian retirement planning. See our full guide at /age-pension-superannuation/.
Super Before Pension Age
Superannuation held in accumulation phase is generally not assessed under the assets test until you reach Age Pension age. Some planning opportunities exist around this timing.
Super After Pension Age
Once you reach Age Pension age, your super balance — including accumulation and pension phase accounts — is counted as an assessable asset under the assets test.
Income Streams from Super
Regular pension payments drawn from super (account-based pensions, annuities) are assessed as income under the income test. The super balance is also assessed as an asset.
Deeming on Super Accounts
Financial assets including account-based pensions are generally subject to deeming — Centrelink applies a deemed income rate rather than the actual earnings or drawdown amount.
Younger Partner's Super
If your partner is below Age Pension age, their super balance in accumulation phase may not be assessed under the assets test — a significant planning consideration for age-gap couples.
Retirement Income Strategy
The interplay between super drawdown rates, asset balances, and pension eligibility is complex. A licensed financial adviser can help you optimise your strategy legally.
The relationship between superannuation and the Age Pension is one of the most complex areas of Australian retirement planning. PublicAccess.au provides educational information only — for personalised advice on structuring your superannuation and pension arrangements, consult a licensed financial adviser (AFS Licensee) who specialises in retirement planning.
Common Age Pension Problems
These are the most frequently encountered issues with Age Pension claims and ongoing payments — with practical guidance on understanding and addressing each situation.
Age Pension Processing Times
Age Pension claims are among the more complex Centrelink assessments because of the detailed income and assets verification involved. Processing times are indicative — your individual experience will depend on the completeness of your claim and the complexity of your financial situation. For a detailed breakdown, see our Age Pension Processing Time Guide.
Check your myGov Centrelink inbox regularly during the assessment period. All requests for further information, decision notices, and payment letters are sent to your myGov inbox — not your personal email. Responding promptly to any requests for additional information is the single most effective way to avoid processing delays.
Age Pension Tools
Use these free tools to estimate your Age Pension eligibility and payment rate, check your broader retirement benefit options, and assess retirement readiness — before submitting a formal claim.
Age Pension Calculator
Estimate your Age Pension payment rate based on your income, assets, and relationship status
Benefits Calculator
See which Centrelink payments you may be eligible for alongside the Age Pension
Retirement Eligibility Checker
Check your eligibility across Age Pension and other retirement support options
All PublicAccess.au calculators provide estimates only — they do not constitute financial advice and are not official Centrelink assessments. For a formal assessment of your Age Pension entitlement, submit a claim through myGov.
Related Age Pension Guides
Explore our full library of Age Pension and retirement support guides for more detail on specific topics.
Frequently Asked Questions
Answers to the twelve most common Age Pension questions — based on Services Australia official guidance, updated 2025.
Related Services & Guides
Explore other areas of PublicAccess.au that are relevant to retirees and Age Pension recipients.
Official Resources
PublicAccess.au is an independent information guide. For official Age Pension eligibility rules, current payment rates, and to submit your claim, always use Services Australia's official channels below.
✅ Official Australian Government Resources
Age Pension rates and means test thresholds are indexed and updated in March and September each year. Always verify current figures at servicesaustralia.gov.au before making retirement planning decisions based on this or any other information guide. For personalised financial advice, consult a licensed financial adviser.
Why Use PublicAccess.au?
Age Pension information is important, consequential, and sometimes difficult to find in a clear and accessible format. PublicAccess.au exists to bridge the gap between official government guidance and the plain-English explanations that Australians actually need when planning their retirement.
Independent Information
Not affiliated with Services Australia, Centrelink, or any government body. We have no commercial interest in your retirement decisions and do not provide advice.
Plain-English Guides
We translate complex Centrelink rules — income testing, assets testing, deeming, taper rates — into clear language that ordinary Australians can understand and act on.
Updated Content
Age Pension rates and thresholds change twice a year. Our editorial team reviews and updates guides when Services Australia announces new rates and policy changes.
Helpful Calculators
Free estimator tools let you model potential Age Pension eligibility and payment rates before committing to a formal Centrelink claim or financial planning conversation.
Step-by-Step Guides
From preparing documents to submitting a claim and understanding your assessment, every process is broken into clear numbered steps that anyone can follow.
Official Source References
Every guide links directly to the relevant Services Australia page so you can verify information and take official action through the correct government channel.
Planning for the Age Pension — Start Early, Stay Informed
The Age Pension is one of Australia's most important retirement support payments, helping millions of older Australians maintain a basic standard of living in retirement. Understanding how the pension works — the age requirement, the residency rules, the income test, the assets test, and how superannuation interacts with your entitlement — is essential for making informed retirement decisions well before you reach pension age.
Use the guides and tools on PublicAccess.au to understand your eligibility and estimate your potential payment rate. Then submit your claim through myGov — ideally up to 13 weeks before you turn 67 — with complete documentation to ensure your payment starts on time. For personalised retirement planning, including strategies to maximise your pension entitlement within the rules, consult a licensed financial adviser with expertise in superannuation and Centrelink assessments.