Age Pension

Who Is Eligible for the Age Pension?

Age Requirements

To receive the Age Pension, you must be at or over the qualifying age. As of 1 July 2025, the qualifying age is 67 years for everyone. This has increased gradually over time – so it’s important to double-check your birth date against the government’s age rules if you’re close to that line.

Residency Rules

To qualify, you must:

• Be an Australian resident
• Have lived in Australia for at least 10 years, including at least 5 years in a row

There are exceptions for people from countries with social security agreements, and special rules may apply to refugees and humanitarian entrants.

Income and Assets Tests

This is where many people get stuck – the Centrelink means tests. These determine how much Age Pension you’ll receive, and in some cases, whether you’re eligible at all. The good news? We’ll explain both clearly below.

The Income Test

The income test looks at how much money you (and your partner, if you have one) earn from work, superannuation pensions, investments, businesses, and more.

Centrelink applies what’s called a “deeming rate” to financial assets like bank accounts and shares – they estimate what you’re earning from those assets, even if you’re earning less in reality. This helps standardise the system.

Current Income Test Thresholds (as of July 2025)

• Single: You can earn up to $204 per fortnight before your pension is reduced.
• Couple (combined): You can earn up to $360 per fortnight.

For every dollar earned above those thresholds, your pension payment reduces by 50 cents per dollar.

Work Bonus

If you’re still doing some part-time or casual work, there’s a little extra breathing room. The Work Bonus lets you earn an extra $300 per fortnight (per person) from work without it affecting your pension.

The Assets Test

The assets test looks at the value of the things you own – not your income from them, but the actual total value. This includes:

• Bank accounts
• Investments and shares
• Superannuation (if over Age Pension age)
• Real estate (excluding your principal home)
• Vehicles, boats, caravans
• Personal belongings

Your home does not count in the assets test – that’s important! But if you own more than one property, the others do count.

Current Asset Limits (as of July 2025)

For homeowners:

• Single: $301,750 (full pension cuts off at approx. $667,500)
• Couple (combined): $451,500 (full pension cuts off at approx. $1,003,000)

For non-homeowners: Add $242,000 to those figures.

If your assets exceed the threshold, your payment reduces by $3 per fortnight for every $1,000 over the limit. Once you're over the cut-off point, you won't receive a pension.

Current Age Pension Payment Rates (July 2025)

Now, let’s talk dollars. What’s the maximum Age Pension you can receive in Australia?

Maximum Fortnightly Rates (including supplements)

Single person:

• Base Rate: $1,096.70
• Pension Supplement: $80.10
• Energy Supplement: $14.10
• Total: $1,190.90 per fortnight

Couple (each):

• Base Rate: $826.70
• Pension Supplement: $60.40
• Energy Supplement: $10.60
• Total: $897.70 per fortnight, or $1,795.40 combined

These figures are adjusted in March and September each year to keep up with inflation and wages.

Applying for the Age Pension

You can apply up to 13 weeks before you reach pension age. That’s a good idea, because applications can take time. Here’s how to get started:

• Set up a myGov account and link it to Centrelink.
• Gather your documents – ID, bank balances, superannuation statements, income details, etc.
• Submit your claim online, by phone, or in person at a Services Australia office.

If you’re overwhelmed by the paperwork, you're not alone. Many Australians seek help from a family member, financial planner, or aged care advocate to get through the process smoothly.

What If You Don’t Qualify?

If you don’t meet the eligibility or means test thresholds, don’t worry – there may still be help available. Consider:

• Commonwealth Seniors Health Card – available to self-funded retirees who aren’t eligible for the pension but still want access to cheaper medications and concessions.
• Low Income Health Card – if your income is modest, this card provides similar benefits.

Helpful Tips for Managing Your Pension

• Keep Centrelink updated about changes in your income or assets – especially if you sell property, receive an inheritance, or withdraw super.
• Review your financial position yearly with a financial planner who understands retirement rules.
• Use Centrelink's income and asset calculators online to check what you're entitled to before applying.
• Ask questions! Centrelink staff can be helpful, and organisations like National Seniors Australia or COTA can provide advice.

How the Age Pension Interacts with Superannuation

Superannuation is assessed as part of the Age Pension means test, but how it’s treated depends on your age and whether your super is in the accumulation or pension phase.

If you're under pension age: Super isn’t counted in the test.

If you're over pension age: Super counts as an asset, and if you're drawing a regular income stream from it (like an account-based pension), Centrelink will assess the income you receive – either the real figure or a deemed amount.

This means the way you structure your super before applying for the pension can significantly affect your payment. Seek professional advice before you retire.

What’s the Difference Between Full and Part Pension?

Full Pension: You receive the maximum rate because your income and assets are below the lower thresholds.

Part Pension: Your payments are reduced because you’re over the income or asset threshold, but not enough to cut you off completely.

Even a part pension is valuable – because it usually brings you access to pensioner concessions, reduced utility bills, and health benefits.

What’s Coming Next?

At Silver Lifestyle, we’ll be digging deeper into each of the big topics in future pages:

• Step-by-step Age Pension application walkthrough
• How to structure your super for maximum pension benefits
• Understanding deeming rates and investment impact
• Tips for older Australians still working part-time
• Case studies of real Australians managing their pension and retirement income

If there's a topic you'd love us to cover, don't hesitate to reach out. We're here to help simplify the complex world of retirement planning.

In Summary

The Age Pension can make a big difference to your retirement lifestyle – but understanding the eligibility rules, income and asset tests, and application process is key to making the most of it.

Start planning early, keep good financial records, seek advice where needed, and don’t be afraid to ask questions. Retirement is your time – and with the right information and support, it can be the most rewarding chapter of your life.

Stay tuned to Silver Lifestyle for more helpful articles, guides, and checklists tailored just for you.

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