Last updated: May 2026 — figures reflect Services Australia settings effective from 20 March 2026. If you’re researching Age Pension eligibility Australia in 2026, you’ve probably noticed the rules keep changing. Maybe you’ve been told you’ll never qualify because you own a home, or you just want a clear answer about where you sit.
A quick note before we start: rates and thresholds are reviewed by the Department of Social Services in March, July and September each year. The figures in this guide reflect the most recent settings as of May 2026. For the very latest numbers, always cross-check Services Australia — we’ve linked to the relevant pages throughout.
What is the Age Pension, in plain English?
The Age Pension is a fortnightly payment from the Australian Government for older Australians who meet certain age, residency and means-test rules. It’s funded from general tax revenue (not from your superannuation), and it sits on top of any super, savings or other income you have.
It’s worth saying clearly: the Age Pension is not a “last resort” payment. A large proportion of Australians of pension age receive at least a part pension, and even modest amounts come with valuable extras — the Pensioner Concession Card, Commonwealth Rent Assistance for renters, and pharmaceutical discounts. Eligibility is worth understanding well before you turn 67, because the choices you make in the years beforehand can have a real impact on what you ultimately receive.
The three big eligibility tests
To qualify for the Age Pension, you need to clear three hurdles:
- Age — you have to be old enough.
- Residency — you have to have lived in Australia long enough.
- Means tests — your assets and income have to be below certain limits.
The means tests are where most of the complexity lives, and where most of the planning opportunity sits. We’ll come back to those, but let’s start with the easier two.
Age eligibility
The qualifying age for the Age Pension is 67 for both men and women. The age increased gradually over the past decade and has been settled at 67 since 1 July 2023. So if you were born on or after 1 January 1957, your qualifying age is 67.
There’s no maximum age — you can apply at any point from 67 onwards. You can also claim up to 13 weeks before your 67th birthday so the payment can start without delay once you’re eligible.
Residency requirements
To receive the Age Pension, you generally need to:
- Be an Australian resident on the day you claim, and
- Have 10 years of total Australian residence, with at least 5 of those years being continuous.
There are some exceptions — for example, time spent in countries Australia has a social security agreement with may count towards the residency test. People who were widowed in Australia or who arrived as refugees may also have different rules. If your situation is non-standard, Services Australia is the right place to confirm.
The assets test, simplified
The assets test looks at the market value of nearly everything you own. The big exclusion is your principal home — the place you actually live in is not counted as an asset.
What does count includes:
- Bank accounts and term deposits
- Shares and managed funds
- Superannuation balances (once you’ve reached Age Pension age)
- Investment properties
- Vehicles and boats
- Household contents (at second-hand “garage sale” value, not replacement cost)
- Business assets, where applicable
There are two thresholds that matter:
- A lower threshold — below this, you can receive the full Age Pension under the assets test.
- An upper threshold (cut-off point) — above this, you’re not eligible for any pension under the assets test.
Between the two, you receive a part pension that tapers down by $3 per fortnight for every $1,000 you’re over the lower threshold (combined, in the case of couples).
Assets test thresholds (current at May 2026)
The figures below reflect the settings effective from 20 March 2026. Lower (full pension) thresholds change each 1 July; upper (cut-off) thresholds change each 20 March and 20 September.
| Situation | Full pension assets under |
No pension assets over |
|---|---|---|
| Single, homeowner | $321,500 | $722,000 |
| Single, non-homeowner | $579,500 | $980,000 |
| Couple combined, homeowner | $481,500 | $1,085,000 |
| Couple combined, non-homeowner | $739,500 | $1,343,000 |
Always confirm current figures on Services Australia — Assets test for Age Pension.
Notice that non-homeowners get a meaningful uplift in their thresholds. That’s because Centrelink recognises that renters need to use part of their assets to put a roof over their heads.
The income test, simplified
The income test asks: how much money is flowing in to you each fortnight, from all sources?
What counts as income includes:
- Employment income (with some help from the Work Bonus for those who keep working)
- Rental income from investment properties
- Income from a business or self-employment
- Deemed income from financial investments (more on this in a moment)
- Foreign pensions
There’s an income free area — earn under this amount per fortnight and your pension isn’t reduced at all. Earn above it, and your pension reduces by 50 cents for every dollar of income over the threshold (for singles; for couples, the combined reduction is 50 cents per dollar over the combined free area).
Income test free areas (current at May 2026)
| Situation | Fortnightly income free area |
|---|---|
| Single | $218 |
| Couple combined | $380 |
These figures are indexed each 1 July. Confirm the latest on Services Australia — Income test for Age Pension.
What is “deeming”?
Rather than ask you to calculate the actual return on every share, term deposit or super account, Centrelink uses a simplified method called deeming. It assumes your financial assets earn a set rate of return — regardless of what they actually earn.
From 20 March 2026, deeming rates increased for the first time in several years. The pandemic-era freeze ended, and rates now sit at:
| Financial assets | Single | Couple combined |
|---|---|---|
| Lower rate – 1.25% applies | First $64,200 | First $106,200 |
| Upper rate – 3.25% applies | Anything above $64,200 | Anything above $106,200 |
This is a meaningful change worth being aware of — the upper rate previously sat at 2.75%, so deemed income from larger balances has stepped up. For the latest deeming rates and thresholds, see Services Australia — Deeming.
How the two tests interact
This is the part most people find confusing. Here’s the simple version: Centrelink runs both tests, then pays you whichever gives the lower pension.
So if the assets test would reduce your pension by $400 a fortnight but the income test would only reduce it by $100, the assets test “cuts in” and you receive the lower amount. For most people with significant super and investments, the assets test tends to be the binding one — though with the 2026 deeming rate increase, the income test now bites harder than it used to.
The reason this matters is that strategies that lower your assessable assets or your deemed income (for example, choosing certain retirement income products, or timing big purchases) can change which test binds — and therefore your pension entitlement.
Worked Example 1: Homeowner couple with $600,000 in assets
Stated assumptions: Margaret and David are both 67, married, and own their home outright. They have $400,000 in superannuation pension accounts, $150,000 in a term deposit, and $50,000 in personal effects and a car. No employment income. They live in their own home.
Total assessable assets: $600,000 (the home doesn’t count).
Assets test:
- Couple homeowner full-pension threshold: $481,500
- They’re $118,500 over the threshold
- Reduction = $118,500 ÷ $1,000 × $3 = $355.50 per fortnight reduction (combined)
Income test:
- Total financial assets being deemed: $550,000
- First $106,200 deemed at 1.25% = $1,327.50 per year ≈ $51.06 per fortnight
- Remaining $443,800 deemed at 3.25% = $14,423.50 per year ≈ $554.75 per fortnight
- Total deemed income: ≈ $606 per fortnight
- Income free area for a couple: $380 per fortnight
- Excess: $226 per fortnight → reduction = 50% × $226 = $113 per fortnight (combined)
Which test binds? The assets test ($355.50) reduces their pension by more than the income test ($113), so the assets test applies.
Result: Using the March 2026 maximum couple rate of $1,810.40 per fortnight combined (including base, pension supplement and energy supplement), some couples in this situation receive roughly $1,454.90 per fortnight combined. They’d also be eligible for the Pensioner Concession Card and associated benefits.
The takeaway: even at $600,000 in assets, a homeowner couple in this kind of position can still receive a meaningful part pension.
Worked Example 2: Single renter with lower assets
Stated assumptions: Susan is 68, single, and rents a unit. She has $80,000 in super, $20,000 in a savings account, and modest personal effects worth $10,000. She has no employment or other income.
Total assessable assets: $110,000.
Assets test:
- Single non-homeowner full-pension threshold: $579,500
- She’s well under the threshold — no reduction under the assets test.
Income test:
- Total financial assets being deemed: $100,000
- First $64,200 deemed at 1.25% = $802.50 per year ≈ $30.87 per fortnight
- Remaining $35,800 deemed at 3.25% = $1,163.50 per year ≈ $44.75 per fortnight
- Total deemed income: ≈ $76 per fortnight
- Income free area for a single: $218 per fortnight
- She’s under the free area — no reduction under the income test either.
Result: Some single renters in this situation receive the full maximum Age Pension for a single (currently $1,200.90 per fortnight, including supplements), plus Commonwealth Rent Assistance, plus the Pensioner Concession Card. For current single maximum rates, check Services Australia — How much Age Pension you can get.
The takeaway: lower asset levels don’t disqualify you; in fact, they often unlock the full pension plus rent assistance.
Common myths, gently busted
“My home will count against me.” Partially true — but probably not in the way you think. Your principal home is exempt from the assets test. However, if you sell your home, the cash you receive is fully assessable from settlement (with a temporary exemption window if you’re using the proceeds to buy or build another home). Worth planning around before you list the property.
“I earned my super, so it shouldn’t be counted.” Once you reach Age Pension age, your superannuation is generally counted under both the assets test and the income test (via deeming, or actual income from a pension product). It doesn’t matter that you contributed it — Centrelink treats it as a financial asset.
“If I have any super left, I won’t qualify.” Not true. Plenty of Australians with six-figure super balances still receive a part pension. The thresholds are higher than many people assume.
“I should spend down my assets to qualify.” Some people in this situation choose to restructure assets in ways that can improve their pension outcome — but spending money simply to chase a payment usually leaves you worse off overall. A tailored conversation with a qualified adviser tends to pay for itself many times over here.
“It’s not worth applying — I won’t get much.” Even a small part pension carries the Pensioner Concession Card, which delivers meaningful savings on prescriptions, utilities and vehicle registration. The headline payment isn’t the whole story.
Your quick eligibility checklist
Run through these to get a rough sense of where you sit. If you can tick the first three and at least one of the last two, you’re likely worth a closer look.
☐ I’m 67 or older (or close to it)
☐ I’ve lived in Australia for at least 10 years, with at least 5 years continuous
☐ I’m an Australian resident now
☐ My (or our) assessable assets are below the upper threshold for my situation — see the table above
☐ My (or our) fortnightly assessable income is below the upper limit for my situation
If you’re a few years off 67, this is also exactly the right time to look at how your assets are structured. Decisions made in your late 50s and early 60s — about superannuation contributions, downsizing, gifting, and the timing of large purchases — can have a meaningful effect on what you ultimately receive.
How a financial adviser can help
The Age Pension rules are structured in a way that rewards thoughtful planning. Two households with the same total wealth can end up with very different pension outcomes depending on how their assets are held — inside super versus outside, in accumulation versus pension phase, in income streams versus lump sums.
A qualified financial adviser can model your situation under the current rules, project how it might evolve as you draw down in retirement, and identify whether a different structure could improve your overall position — taking tax, estate planning and lifestyle goals into account, not just the pension itself. The goal isn’t always to maximise the pension; the goal is to maximise your retirement, and the pension is one piece of that bigger picture.
Frequently asked questions
At what age can you get the Age Pension in Australia?
The qualifying age is 67 for both men and women. If you were born on or after 1 January 1957, you can claim from your 67th birthday. You can lodge a claim up to 13 weeks before that date so payments can start without delay.
How much can you have in the bank and still get the Age Pension?
It depends on your situation and whether you own your home. As of 20 March 2026, a single homeowner can have up to $722,000 in assessable assets and still receive a part pension; a couple combined who own their home can have up to $1,085,000. Non-homeowners get a higher allowance. Confirm current figures with Services Australia.
What is the income limit for the Age Pension?
The income free area is currently $218 per fortnight for a single and $380 per fortnight for a couple combined. Earnings above those limits reduce the pension by 50 cents per dollar. The Work Bonus can shelter some employment income on top of the free area.
Does my home count as an asset for the Age Pension?
No — your principal place of residence is exempt from the assets test, no matter what it’s worth. The land it sits on (up to two hectares for most situations) is also exempt. Investment properties, holiday homes and proceeds from selling your home are all assessable.
How much super can I have and still get the Age Pension?
Once you reach Age Pension age, your superannuation is counted under the assets test and the income test (via deeming). Plenty of Australians with six-figure super balances still receive a part pension — the thresholds are higher than many people assume. The exact answer depends on whether you own a home, your relationship status and your other assets.
How long do I need to have lived in Australia to qualify?
You generally need 10 years of total Australian residence, with at least 5 of those years being continuous. Time spent in countries that have a social security agreement with Australia may count. Different rules apply for refugees and some other circumstances.
Ready to map out your retirement?
If you’d like a clear, personalised view of how the Age Pension fits into your retirement plan — and what you can do now to shape that outcome — we’d love to help. Book a Retirement Readiness Session with the Inspired Money team at inspiremoney.com.au/contact. It’s a friendly first conversation, not a sales pitch, and you’ll leave with a much clearer sense of your options.
Helping you achieve your goals is what we do.
This information is general in nature and does not take into account your personal financial situation, objectives, or needs. You should consider whether this information is appropriate for your circumstances before acting on it. For advice tailored to your situation, please contact a qualified financial adviser.
Sources: Services Australia Age Pension rates and thresholds (current as at 20 March 2026); Department of Social Services; ATO; asfa.asn.au
