Everything you need to know about the Age Pension
Updated on 23 December 2024 | 2 minute read
Retiring should feel exciting, not stressful. And the Australian Age Pension gives you some peace of mind so you can enjoy your life after work. But there can be a lot of Age Pension rules confusion. Here's what you need to know.
What is the Age Pension in Australia?
It’s a payment that the Australian government gives to older eligible Australians once every fortnight. If it's your only source of income, generally you won't pay tax on the Age Pension. The Age Pension is there to make sure everyone has a basic standard of living.
Am I eligible for the Age Pension?
To qualify, you need to meet a few criteria:
Age
You must have reached the Age Pension age. So, what is the Age Pension age in Australia? It's currently 67 years or older.
Residency
You need to be an Australian resident and have lived in Australia for at least 10 years – with 5 of those years being continuous.
Financial situation
Your income and assets must fall below the government’s limits.
How does what I earn and own affect my Age Pension eligibility?
The government uses 2 tests to determine your Age Pension eligibility: the income test and the assets test. These determine if you receive a full, part, or no Age Pension.
Assets test
For the assets test, they’ll look at the value of your:
- bank accounts
- shares
- investment properties
- superannuation
- vehicles and household items (you can provide the value of these assets, often at fire sale value to reduce the amount of assessable assets).
Income test
For the income test, they’ll look at the money you get from:
- super and investments
- your job (if you have one)
- rental properties.
To predict what you’ll earn from income sources in the year ahead, they use what’s called deeming rates. And this affects how much money you could get from the Age Pension.
How much is the Age Pension?
The Age Pension amount varies on a sliding scale, depending on several factors:
- your assets and income
- whether you're single or part of a couple
- if you're eligible for a full or part pension.
For the most up-to-date Age Pension rates, check out the Services Australia website.
If I’m not eligible for the Age Pension, what else can I get?
You might still qualify for the Commonwealth Seniors Health Card. It gives you cheaper healthcare. Your state or territory may also provide additional benefits like electricity and gas bills, property and water rates, and public transport fares. While the government works out whether you qualify for the card based on your income, they don’t include any of your other assets. You’ll find more information about this on Services Australia's website.
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