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Want to see what you’re entitled to? Try the **[Age Pension Calculator](/calculators/age-pension)** and estimate your Age Pension payments.

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## What is the Age Pension?

The **Age Pension** is a government payment that helps older Australians cover living costs in retirement.  
It’s a safety net — but many retirees with modest savings or investments still qualify for a **part or full pension**.

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## Table of contents
1. [Eligibility](#eligibility)
2. [How much you can receive](#how-much-you-can-receive)
3. [Income & assets tests](#income--assets-tests)
4. [Deeming rules](#deeming-rules)
5. [Examples](#examples)
6. [Ways to increase your pension](#ways-to-increase-your-pension)
7. [FAQs](#faqs)
8. [Disclaimer](#disclaimer)

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## Eligibility

To qualify, you must meet **three key tests**:

- **Age** – currently **67** (no further increases legislated)  
- **Residency** – must generally have lived in Australia for **10 years**, including **5 consecutive years**  
- **Means testing** – based on your **income and assets**

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## How much you can receive

### **Maximum fortnightly payments (as at 20 September 2025)**

| Type | Single | Couple (each) |
|---|---:|---:|
| Max rate | $1,116.30 | $841.40 |
| Annual equivalent | $29,023 | $21,876 |

> Includes the Pension Supplement and Energy Supplement.

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## Income & Assets Tests

Centrelink runs **both tests** and pays whichever gives you the **lower amount**.

### **Assets test (20 Sept 2025)**

Your **home is exempt**, but most other assets are counted — such as super, bank accounts, shares, and investment properties.

| Situation | Full Pension Up To | Cut-Off |
|---|---:|---:|
| Single homeowner | $301,750 | $686,250 |
| Couple homeowners | $451,500 | $1,031,000 |

> Pension reduces by **$3 per $1,000** of assets above the threshold.

### **Income test (20 Sept 2025)**

Assessable income includes wages, rent, and deemed investment income.

| Situation | Full Pension Up To | Cut-Off |
|---|---:|---:|
| Single | $204/fortnight | $2,444/fortnight |
| Couple (combined) | $360/fortnight | $3,736/fortnight |

> Pension reduces by **50c for every $1** over the threshold.

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## Deeming rules

Centrelink doesn’t use your actual investment returns — it uses **deeming rates** to estimate income.

| Amount | Deeming rate |
|---|---:|
| Up to $60,400 (single) / $100,200 (couple) | **0.25%** |
| Above those amounts | **2.25%** |

This simplifies the process and avoids constant reporting, but may under- or over-estimate income when markets move.

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## Example: Single homeowner

**Assets:**

- Account-based pension: $300,000  
- Cash: $20,000  
- Car & contents: $15,000  
- **Total assessable assets: $335,000**

Threshold: $301,750  
Amount over: $33,250  
Reduction: $33,250 ÷ 1,000 × $3 = **$99.75/fortnight**

Full rate $1,116.30 − $99.75 = **$1,016.55/fortnight**

> Result: Part pension based on the assets test.

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## Ways to increase your pension

> These are general strategies — always seek personalised advice.

### 1. Re-structure assets
- Pay down your mortgage  
- Renovate or upgrade your home (exempt asset)  
- Replace old household items  
- Gift within the **$10,000 per year / $30,000 per five years** limit

### 2. Use superannuation rules
- If your spouse is **under pension age**, move assets into their accumulation super (temporarily exempt)  
- Make **downsizer** or **spouse contributions** to adjust balances

### 3. Choose income streams wisely
- Some **lifetime annuities** receive concessional Centrelink treatment  
- Review your **account-based pension** structure for optimisation

### 4. Plan withdrawals carefully
- Keep only essential cash reserves  
- Track spending vs gifting to avoid breaching thresholds

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## Why planning matters

A few small tweaks can mean:

- **Thousands more per year**  
- **Earlier eligibility**  
- **Higher retirement cash flow**

The key is planning **before** you reach pension age.

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Try the **[Age Pension Calculator](/calculators/age-pension)** to estimate your payments and explore strategies to increase them.

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## FAQs

**Can I work and still get the pension?**  
Yes. You can earn up to **$7,800 extra per year** under the *Work Bonus* before payments reduce.

**Does super count?**  
Yes — once you reach pension age.  
If your spouse is younger, **their super is ignored**.

**Do I apply on my birthday?**  
You can apply **13 weeks before** turning 67.

**Is my home included?**  
No — your **main residence is exempt**.

**Can gifting cause issues?**  
Yes — excess gifts are treated as **deprived assets** for up to five years.

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## Disclaimer

Figures are accurate as at **20 September 2025**.  
This guide is **general information only** and does not constitute financial or tax advice.  
Consult a qualified financial adviser before making any decisions.

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A plain-English guide to how the Australian Age Pension works — who’s eligible, how payments are calculated, and smart, legal ways to maximise what you receive.

#retirement planning

Age Pension Explained: Rules, Rates & How to Increase Your Entitlements