Age Pension Assets & Income Test Calculator Australia 2026
Estimate your fortnightly Age Pension rate based on the Centrelink assets test and income test. Uses 2026 thresholds — the lower result of both tests determines your payment.
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.
Frequently Asked Questions
What is the Age Pension assets test threshold for 2026?
For 2026, single homeowners can hold up to $314,000 in assessable assets and receive the full Age Pension. Single non-homeowners have a threshold of $566,000. Couple homeowners have a combined threshold of $470,000, and couple non-homeowners $722,000. Above these levels, the pension reduces by $3 per fortnight per $1,000 of excess assets.
What deeming rates apply in 2026?
In 2026, the lower deeming rate is 0.25% per year on financial assets up to $62,600 for singles (or $103,800 for couples combined). Amounts above those thresholds are deemed to earn 2.25% per year. Centrelink adds this deemed income to any actual income before applying the income test reduction.
Does the family home count in the assets test?
No — the principal place of residence (family home) is fully exempt from the assets test regardless of its value. This is a key reason why "homeowner" and "non-homeowner" thresholds differ significantly. However, moving out of the home or renting it out can change the exemption status.
How much can I earn before my pension is reduced?
The income free area is $204 per fortnight for singles and $360 per fortnight combined for couples (2026 rates). Above these amounts, the pension reduces by $0.50 for every $1.00 of additional income. Pensioners who work can also use the Work Bonus — up to $11,800 per year of employment income is excluded from the income test.
Can I receive a part Age Pension?
Yes. If your assets or income are above the full pension threshold but below the cut-off point, you will receive a part Age Pension. The cut-off for singles (homeowner) is approximately $696,250 in assets. For income, the cut-off is around $2,500 per fortnight for singles. Receiving even $1 of Age Pension entitles you to a Pensioner Concession Card.
How does gifting affect the Age Pension assessment?
Centrelink allows gifting of up to $10,000 per financial year and $30,000 over five years without penalty. Gifts above these limits are treated as "deprived assets" and continue to be counted in the assets test for five years as if you still owned them. This rule prevents people from giving away assets to qualify for higher pension payments.
When did the Age Pension increase in 2026?
Centrelink indexed the Age Pension on 20 March 2026, lifting the maximum single basic rate to $1,051.30 per fortnight and the partnered (each) rate to $792.50, plus the Pension Supplement and Energy Supplement. The single homeowner assets test threshold rose to $314,000 and the income free area for singles stayed at $204 per fortnight. The next indexation is 20 September 2026 (CPI / PBLCI whichever is higher).
How does the Work Bonus help working pensioners in 2026?
The Work Bonus excludes the first $300 per fortnight of employment income from the Age Pension income test, with unused amounts rolling into an income bank capped at $11,800. From December 2022 the bonus also covers active self-employed income, so a retired tradie running a small ABN can earn more than the basic income free area before pension reductions apply. The bonus does NOT exempt investment income, rental income, or super pension draw-downs.