What is the income test for the Age Pension?
The Centrelink income test is used to work out how much money you can earn each fortnight and still be eligible for the Age Pension.
If your total income is less than this amount, you could get a part or full Age Pension, as long as you also meet other eligibility requirements.
How the Age Pension income test works
Centrelink asks you to list all the income you earn and any financial assets you have. They use a process called deeming to work out how much income you earn from these financial assets (which is called deeming rates). Learn more about deeming rates in the FAQs below or for more details, visit the Centrelink (Services Australia) website.
What’s included
Your job (if you're still working)
Superannuation you can access (deemed income or actual income depends on product type)
Share market dividends (deemed income)
Financial investments (deemed income)
Savings accounts and term deposits (deemed income)
Rent you get from an investment property
Income from outside Australia (e.g. non-Australian pensions).
What's not included
Most other Centrelink payments, including rent assistance
Compensation for loss or damage to things you own
Child support payments you get
Any free board and lodging you get
Regular payments from a close relative
Emergency relief payments
First Home Saver Account withdrawals or interest
Repayment for expenses
Some work allowances (if you spend the whole amount on what it’s meant for, e.g. work travel)
NDIS payments.
Income test limits
Whether or not you get the Age Pension, and how much you get in payments (a full pension or part pension), depends on how much other income you have. These tables show how much you can earn under the income test.
Select your living situation:
Single person
| Income | Your Age Pension |
|---|---|
| Up to $212/fortnight ($5,512/year) | Full Age Pension |
| Over $212 | Partial Age Pension: payment reduces by 50 cents for each dollar over $212 |
| $2,500.80/fortnight or more | No Age Pension |
Current as at 20 September 2024. The Age Pension income limits are adjusted 3 times a year based on movements in the Consumer Price Index (CPI). The limits for the full Age Pension change in July, and the part Age Pension limits change in March and September.
Did you know?
Centrelink uses both the income and assets test, and they base their decision on whichever test gives you a lower Age Pension payment.
Case study example: Sue
Sue is 70 years old, single, and wants to make sure her basic living costs are covered.
Let’s compare how Centrelink would assess $100,000 of Sue’s money if she puts it into either a Retirement Income account or a Lifetime Pension.1
The income test and your super
How Centrelink assess your super or your superannuation pension depends on how you set it up. For example, here’s how Centrelink views the 3 retirement product types we offer:
| Age Pension income test | Age Pension assets test | |
|---|---|---|
| Accumulation account* | Deemed income based on balance | Current balance |
| Retirement Income account | Deemed income based on balance | Current balance |
| Lifetime Pension | 60% of actual income | 60% of purchase price until age 84, and 30% from then on2 |
*The money in your Accumulation account is only assessed if you or your spouse have reached pension age.
FAQs about the income test
That’s all for now
The assets test is only one part of the Centrelink eligibility test to see if you can get the Age Pension. Make sure you check the other factors as well.
Starting age
You can get the Age Pension in Australia from age 67 if you meet the assets and income tests and residence rules.
If you're not yet old enough, you may be able to start using your super for your retirement.
Assets test
Find out how the Centrelink assets test counts your super.
Ready to make a plan?
If you’re confident you understand your eligibility, here’s what you can do next.
Choose when to retire
If you already know what age you can get the Age Pension, check the age you can access your super and think about when you might be able to start enjoying life after work.
Get advice
To keep planning your retirement, book an appointment for financial advice about your account (the cost is included with your account).
You can also find out the average super balance for your age, how much you'll need to retire, and how to grow your super.
Apply for other government benefits for seniors
Some of the other benefits (apart from the Age Pension) you may be able to access include:
- Seniors Card, which will give you access to a wide range of both government and non-government products and services such as discounted public transport (if eligible)
- Commonwealth Seniors Health Card, which could give you access to cheaper prescriptions and other government-funded medical services, if you meet the health card's income test, which lets you earn more income than the Age Pension (the health card doesn't have an assets test)
- Other types of pensions such as the Pensioner Concession Card, Disability Support Pension, Carer Payments/Allowances, and the Pension Loans Scheme.
Create your retirement income
When you retire with our award-winning products, you can mix and match to create the best combination with your super. And the Age Pension, too, if you can get it.
Transition to Retirement Income account
You are: Aged 60 to 64, but not yet retired.
You get: Regular payments from your super while still working.
Retirement Income account
You are: Age 65 or over, or between 60 and 64 and permanently retired.
You get: Regular payments from your super when you retire.
Lifetime Pension
You are: Aged from 60 to 80 years old and permanently retired.
You get: Tax-free fortnightly payments for the rest of your life, and you can combine with an income account.