How the Age Pension is Calculated
When you apply for the Age Pension, Centrelink uses two tests:
Income Test
Assets Test
The test that gives you the lower pension amount is used.
Some assets are not counted, including your family home, superannuation if you are under Age Pension age, certain funeral bonds, some aged care accommodation payments, and gifts within the allowable limits.
Financial assets such as superannuation, bank accounts, shares and managed funds are generally counted at their current value. Centrelink also applies deeming rates to these assets when calculating income. You can use our separate Deeming Calculator to estimate this.
Your car, furniture, household contents and boats are generally valued at their current market value, not their replacement cost.
The Assets Test has different limits for homeowners and non-homeowners.
Income Test
From 1 July 2026, a single pensioner can have income of up to $226 per fortnight and still receive the full Age Pension of $1,200.90 per fortnight, including supplements.
They can also earn up to $460 per fortnight from employment without it affecting their pension, through the Work Bonus.
Once income exceeds the applicable limit, the pension generally reduces by 50 cents for every $1 of additional income.
For a couple, the combined income limit is $396 per fortnight for the full pension of $1,810.40 per fortnight, including supplements. Each person can also earn up to $460 per fortnight from employment under the Work Bonus.
Work Bonus
The Work Bonus allows pensioners to earn income from employment without immediately reducing their pension.
New pensioners receive a $4,000 Work Bonus income bank. This can be used together with the normal $300 per fortnight Work Bonus amount.
For example, someone with a $4,000 income bank who earns $460 per fortnight may be able to have all of this income excluded from the income test for a period of time.
Assets Test
From 1 July 2026, the full pension is available where assessable assets are below:
Single homeowner: $333,000
Couple homeowner: $499,000
Single non-homeowner: $600,000
Couple non-homeowner: $766,000
Once your assets exceed the lower threshold, your pension reduces by $3 per fortnight for every $1,000 above the threshold.
The maximum assessable assets for receiving a part pension are approximately:
Single homeowner: $733,500
Single non-homeowner: $1,000,500
Couple homeowner: $1,102,500
Couple non-homeowner: $1,369,500
Note: Calculations include all applicable supplements. For couples, the amount shown is the combined pension, assuming both people have reached Age Pension age.