Age pension eligibility in Australia 2026 thresholds, application + part-pension math

The Finance Desk · Editorial team, accountants + mortgage brokers + financial planners + conveyancers · Updated 30 May 2026 · How we rank · Editorial standards

Age pension age is 67 in 2026. Current single and couple pension rates are indexed twice yearly and published by Services Australia. Eligibility is tapered by income and assets tests. Most retirees receive at least partial age pension, and many structure their super and assets specifically to maximise eligibility. Apply via myGov up to 13 weeks before turning 67.

★Key takeaways

  • ✓Age pension age: 67 for everyone born on/after 1 January 1957.
  • ✓Pension rates are indexed twice yearly — current single and couple rates are on servicesaustralia.gov.au.
  • ✓Income test free-area amounts and Work Bonus rates are published by Services Australia.
  • ✓Assets test has separate thresholds for homeowner/non-homeowner and single/couple — principal residence is excluded.
  • ✓Deeming uses a tiered rate structure with thresholds published on the Services Australia deeming page.

The basic eligibility requirements

  1. Age. You must have reached age pension age. For 2026, that is 67.
  2. Residence. You must be an Australian resident on the day you claim. You also typically need 10 years of Australian residency (with at least 5 continuous years) over your lifetime. International agreements (NZ, UK, several European countries) may modify this — see Services Australia international agreements.
  3. Income test. Your income must be below the cut-off threshold for your status. Current free-area and cut-off amounts are published by Services Australia.
  4. Assets test. Your assets (excluding principal residence) must be below the cut-off threshold, which varies by single/couple and homeowner/non-homeowner status — see Services Australia assets test.
  5. Application. You must lodge a claim via Centrelink. Pension is not automatic at age 67.

Centrelink applies BOTH the income test and assets test and pays the LOWER pension rate. Your actual entitlement is the worse of the two test outcomes.

Where to find current pension rates

Age pension rates (single, couple-combined, couple-each, and separated due to illness) are indexed twice yearly in March and September. Each component — base pension, pension supplement and energy supplement — is listed separately. For the current fortnightly and annual amounts, see the Services Australia "how much Age Pension" page.

The income test

Income includes:

  • Deemed income from financial assets (super for over-67s, bank accounts, shares, account-based pensions). Two tiered deeming rates apply — see Services Australia deeming rates. Actual returns above the deemed rate are ignored.
  • Employment income (wages, salary, self-employment). The Work Bonus adds a fortnightly buffer to your free area for employment income — see Services Australia Work Bonus.
  • Rental income (net of allowable deductions)
  • Account-based pension drawings (with grandfathering rules for pre-2015 pensions)
  • Foreign pensions and overseas income
  • Lump sum payments (in some circumstances)

Free-area, taper rate and cut-off thresholds for the income test (and the additional Work Bonus buffer for employment income) are published by Services Australia and indexed periodically. See the income test for Age Pension page for current single and couple figures.

The assets test

Assets include almost everything you own (excluding principal residence):

  • Super balances (for over-67s)
  • Account-based pensions
  • Bank accounts, term deposits, shares, managed funds
  • Investment properties (including rental properties)
  • Cars, boats, caravans (over reasonable use thresholds)
  • Business assets
  • Household contents (assessed at scrap value, not insurance value, so usually trivial)
  • Overseas assets

Full-pension and cut-off thresholds for each combination of single/couple and homeowner/non-homeowner are published on the Services Australia assets test page and indexed periodically. The pension reduces by $3 per fortnight for every $1,000 of assets above the full-pension threshold.

Common strategies to maximise eligibility

Retirement planning often focuses on optimising pension entitlement alongside super:

  • Spouse contributions. Moving super from older spouse (already counted) to younger spouse (under 67, not yet counted) can reduce assessable assets for years.
  • Downsizer contribution. Selling family home and contributing up to $300,000 each into super can shelter funds inside super before 67.
  • Renovate principal residence. Home renovations reduce assessable assets without reducing wealth (renovations stay in exempt principal residence).
  • Prepay funeral expenses. Funeral bonds up to certain limits are excluded from assets test.
  • Gifting limits. $10,000/year up to $30,000 over 5 years gifts excluded; above these limits, gifted amounts are deemed assets for 5 years.
  • Account-based pension grandfathering. Pensions commenced before 1 January 2015 use the older income test rules, which can be more favourable.

Many of these strategies are complex and have tax consequences. Most are best discussed with a financial planner.

How to apply for age pension

  1. Set up myGov account linked to Centrelink (if not already)
  2. Lodge claim up to 13 weeks before turning 67. Apply early to avoid processing delays at retirement
  3. Gather documents: proof of identity (100-point check), birth certificate, bank statements (12 months), super statements, asset values (property, shares), income evidence (employment, rental, foreign pensions)
  4. Submit claim via myGov. In-person at Service Centre also available
  5. Attend interview if requested. Centrelink may need additional clarification
  6. Wait 4-12 weeks for decision. Backdating to claim lodgement date applies if successful
  7. Pension paid fortnightly into your nominated bank account, starting from claim date

What changes after you start receiving pension

Once on age pension, you have ongoing reporting obligations:

  • Notify Centrelink within 14 days of changes (income, assets, residence, relationship status)
  • Annual reviews of super and other assets (Centrelink contacts you)
  • Travel notifications if leaving Australia (extended absence may affect pension)
  • You receive a Pensioner Concession Card with significant savings on medications (PBS concession), utilities, transport
  • Eligible for Commonwealth Seniors Health Card (separately) for additional discounts

Related coverage

Sources

Information in this article is general and current as at 19 May 2026. Verify with an AFSL-licensed financial adviser, Services Australia or the linked authorities before relying on it.

Common questions

Age pension: frequently asked questions

What is the age pension age in 2026?

67 years for everyone born on or after 1 January 1957. The age pension age was progressively lifted from 65 over the 2017-2023 period and has stabilised at 67. There are no plans to raise it further as of 2026.

How much is the age pension in 2026?

Age pension rates are indexed twice yearly in March and September and published by Services Australia. The total payment includes the basic pension, pension supplement and energy supplement. Check servicesaustralia.gov.au/age-pension for the current single and couple rates before relying on a figure.

What is the income test for age pension?

Singles and couples have a fortnightly free-area threshold below which they receive the full pension. Above the threshold, the pension reduces by 50 cents per dollar of income (single basis). Income includes deemed returns on financial assets, employment income (subject to the Work Bonus), rental income, and account-based pension drawings. Current free-area amounts are published by Services Australia.

What is the assets test for age pension?

Single and couple homeowners and non-homeowners each have a full-pension threshold and a higher cut-off threshold. The principal residence is excluded. Current thresholds are published by Services Australia and indexed periodically.

What are deeming rates in 2026?

Deeming applies to financial assets (cash, shares, super, account-based pensions for over-67s). Two tiered deeming rates apply, with a lower rate up to a threshold and a higher rate above it. Actual returns above the deemed rate are ignored for the income test. Current rates and thresholds are on the Services Australia deeming page.

Does my super affect age pension?

Yes. After you reach age pension age (67), super counts as an asset under the assets test and is deemed to earn returns under the income test. Below 67, super is exempt from both tests. This drives many retirement planning strategies (drawing down or restructuring super before age 67).

How do I apply for age pension?

Apply via Centrelink online (myGov account required) or in person at a Services Australia centre. Lodge up to 13 weeks before turning 67. Required documents: identity, bank statements, super balance, asset values, income evidence. Processing typically 4-12 weeks. Backdating to claim date possible.

Can I receive part age pension while still working?

Yes. The income test allows substantial earnings before age pension reduces. The Work Bonus increases the income test threshold by $300/fortnight for employment income (separate from the standard threshold). Many part-pensioners continue working part-time to supplement income.