How the Age Pension is Calculated

Use our Age Pension Calculator to estimate how much Age Pension you may be entitled to receive based on your income, assets, relationship status and homeownership status.

Centrelink assesses Age Pension eligibility using two means tests: the Income Test and the Assets Test. The test that results in the lower pension payment determines your entitlement.

Our calculator can help you understand your potential payment and how your financial circumstances may affect your eligibility.

Important: This calculator provides an estimate only. Centrelink determines your actual entitlement after assessing your individual circumstances.

How Is the Age Pension Calculated?

Centrelink uses two separate tests to assess your Age Pension entitlement.

1. The Income Test

The Income Test considers income you receive from sources such as employment, superannuation income streams and investments. Income from financial assets, including bank accounts, shares and managed funds, may also be assessed using Centrelink's deeming rules.

If your assessable income exceeds the applicable free area, your pension generally reduces by 50 cents for every additional dollar of income above the threshold.

2. The Assets Test

The Assets Test considers the value of assets you own, including savings, investments, superannuation once you reach Age Pension age, vehicles, household contents and investment properties.

Your principal home is generally exempt, subject to Centrelink's rules.

Different asset thresholds apply depending on whether you are single or partnered and whether you own your home.

Centrelink uses whichever test produces the lower Age Pension payment. You may qualify for a full pension, a part pension or no Age Pension, depending on your circumstances.

Age Pension Income Test

The following figures are supplied as the rates effective from 20 September 2026. Confirm the applicable Centrelink rates before publishing.

Single pensioners

A single pensioner may receive the full Age Pension if their assessable income is within the applicable income-free area of $226 per fortnight.

The supplied maximum full pension rate is $1,237.70 per fortnight, including supplements.

If assessable income exceeds the free area, the pension generally reduces by 50 cents for each additional dollar of income.

Couples

For couples, Centrelink generally assesses combined income and applies the relevant couple income thresholds and payment rates.

The supplied figures refer to a combined income-free area of $396 per fortnight and a maximum pension rate of $933 per fortnight for each eligible member of a couple, including supplements.

Please verify the couple income-free area and maximum payment rate before publication, as the figures supplied need to be reconciled with the applicable Centrelink rates.

Understanding the Work Bonus

The Work Bonus helps eligible Age Pension recipients who continue working by excluding some employment or self-employment income from the Income Test.

Eligible pensioners can accumulate unused Work Bonus amounts in an income bank, which can help reduce the impact of employment income on their Age Pension.

Since 1 January 2024, eligible new pensioners have received an initial $4,000 Work Bonus income-bank credit. This is in addition to the ongoing Work Bonus rules.

For example, an eligible pensioner with a $4,000 income bank may be able to earn employment income without immediately reducing their Age Pension, depending on their accumulated balance and applicable Work Bonus rules.

The Work Bonus does not apply to investment income, such as interest, dividends or rental income.

The amount of employment income excluded depends on the rules, the pensioner's income-bank balance and their circumstances. The $460-per-fortnight example should therefore be treated as illustrative rather than a guaranteed ongoing exemption.

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: $745,750

• Single non-homeowner: $1,012,750

• Couple homeowner: $1,121,000

• Couple non-homeowner: $1,388,000

Note: Calculations include all applicable supplements. For couples, the amount shown is the combined pension, assuming both people have reached Age Pension age.