Age Pension Assets & Income Test Calculator Australia 2026

How the Age Pension Means Test Works

The Australian Age Pension is subject to two separate means tests administered by Centrelink: the assets test and the income test. Centrelink applies whichever test produces the lower pension rate. As of 1 January 2026, the full single Age Pension is $1,149.00 per fortnight (including pension and energy supplements), and the full couple rate is $866.10 per fortnight each. Recipients must be aged 67 or over and satisfy residency requirements.

Under the assets test, single homeowners can have up to $314,000 in assets and still receive a full pension; non-homeowners have a higher threshold of $566,000. For couples (combined), the thresholds are $470,000 (homeowner) and $722,000 (non-homeowner). Above the full pension threshold, the pension reduces by $3 per fortnight for every $1,000 of assets. Assets include bank balances, super balances, shares, investment property equity, vehicles, and household contents — but not the family home or exempt assets.

Income Test Rates and Deeming Rules

The income test uses a deeming framework for financial assets. In 2026, the deeming rates are 0.25% per year on financial assets up to $62,600 (single) or $103,800 (couple), and 2.25% on amounts above those thresholds. Deemed income is added to any other income (wages, rent, business income) before applying the income test. The pension reduces by $0.50 per fortnight for every dollar of income above the free areas: $204 per fortnight for singles and $360 per fortnight combined for couples. Income from the Work Bonus scheme — up to $11,800 per year — is excluded for pensioners who work.

Assets Exempt from the Test

Several asset classes are fully exempt from the assets test: the principal family home (regardless of value), pre-paid funeral bonds up to $15,000, certain lifestyle assets below the threshold, and Australian superannuation balances below pension age. Gifting beyond $10,000 per year or $30,000 over five years is treated as a deprived asset under the deprivation rules. This calculator uses the standard 2026 thresholds and does not model all exemptions — always verify with a Centrelink financial information services officer.

Who Qualifies for the Age Pension in 2026

To receive the Age Pension you must be at least 67 years old, be an Australian resident for at least 10 years (including 5 continuous years), and satisfy both the assets test and income test simultaneously. Temporary absences from Australia for up to 26 weeks generally do not affect payments. The pension is paid every two weeks into your nominated bank account. If you are assessed as having $0 payable under either test, you may still be eligible for a Low Income Health Care Card or Commonwealth Seniors Health Card.

20 March 2026 Indexation — What Changed

Centrelink indexes the Age Pension twice a year (20 March and 20 September) against CPI and the Pensioner and Beneficiary Living Cost Index (PBLCI), whichever rises more. From 20 March 2026, the maximum single basic rate rose to $1,051.30 per fortnight and the partnered (each) rate to $792.50, with full Pension Supplement and Energy Supplement added on top. The single homeowner assets test threshold moved to $314,000 (up from $304,750) and the disqualifying cut-off climbed to about $695,500. Income free areas, deeming thresholds, and the Work Bonus cap also adjusted — confirmed via Services Australia. Use the superannuation balance projector to model how draw-downs interact with the indexed thresholds, or pair with the AU income tax calculator for a full retirement income picture.

Work Bonus, Pension Bonus and Concession Cards

If you continue working past 67 the Work Bonus excludes the first $300 per fortnight of employment income from the income test, and unused amounts roll over into an "income bank" capped at $11,800 — so seasonal workers can earn larger bursts without affecting their pension. Self-employed income from active business effort also qualifies from 1 December 2022 onward. Even part-pensioners on $1 per fortnight get a Pensioner Concession Card, unlocking cheaper PBS scripts, transport discounts, and bulk-billed GP visits in many areas. Model contribution strategies with the salary sacrifice calculator, optimise contribution type via the concessional vs non-concessional calculator, check your preservation age, and verify minimum drawdowns with the account-based pension calculator. Last updated 2026-05-23 with Services Australia 20 March 2026 indexation.