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Age Pension income test

Find out how Centrelink counts your super and other income

Age Pension income test

Find out how Centrelink counts your super and other income

Age Pension eligibility

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What is the income test for the Age Pension?

The Centrelink income test is the limit on how much money you can receive each fortnight and still be eligible to get some Age Pension.

If your total income is less than the limit, you could get the Age Pension, as long as you also meet their other eligibility requirements.

You can also try our QSuper Lifetime Pension Income Estimator to see how a product such as our Lifetime Pension might bring you under the income limit and potentially get you more from the Age Pension.

(Don't just rely on this estimator when choosing a financial product – you should consider getting advice from a licensed financial adviser and read the PDS before making any financial decisions.)

How the Centrelink income test works

Centrelink asks you to list all the income you earn – and sometimes they assume you’re earning income from something, even if you’re not, which is called deemed income or deeming rates.

What's included

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    Your job (if you're still working)

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    Superannuation you can access (deemed income or actual income depends on product type)

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    Share market dividends (deemed income)

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    Financial investments (deemed income, see list)

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    Savings accounts and term deposits (deemed income)

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    Rent you get from an investment property

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    Income from outside Australia (e.g. non-Australian pensions).

What's not included

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    Any other Centrelink payments, including rent assistance

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    Compensation for loss or damage to things you own

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    Child support payments you get

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    Any free board and lodging you get

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    Regular payments from a close relative

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    Emergency relief payments

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    First Home Saver Account withdrawals or interest

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    Repayment for expenses

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    Some work allowances (if you spend the whole amount on what it’s meant for, e.g. work travel)

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    NDIS payments.

For more detail, please visit the Centrelink (Services Australia) website.

Income test limits

Whether or not you get the Age Pension, and how much you receive 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.

Centrelink uses both the income and assets test, and they base their decision on whichever test gives you a lower Age Pension payment.

Select your living situation:

Single person

Income Your Age Pension
Up to $190/fortnight ($4,940/year) Full Age Pension
Over $190 Partial Age Pension: payment reduces by 50 cents for each dollar over $190
$2,318.00/fortnight or more No Age Pension

Current as at 20 March 2023. Centrelink changes these limits each year in line with inflation (CPI).

Couple living together

Combined income per fortnight Your Age Pension
Up to $336 Full Age Pension
Over $336 Partial Age Pension: payment reduces by 50 cents for each dollar over $336
$3,544.00/fortnight or more No Age Pension

Current as at 20 March 2023. Centrelink changes these limits each year in line with inflation (CPI).

Couple living apart because of ill health

Combined income per fortnight Your Age Pension
Up to $336 Full Age Pension
Over $336 Partial Age Pension: payment reduces by 50 cents for each dollar over $336
$4,592.00/fortnight or more No Age Pension

Current as at 20 March 2023. Centrelink changes these limits each year in line with inflation (CPI).

Case study example: Sue

Sue is 70 years old, single, and wants to ensure that 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 three retirement product types we offer:

Swipe to view table

  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

FAQs about the income test

How much you can get from the Age Pension depends partly on what you do with your super. If you leave it in your super account, Centrelink counts the balance towards the assets test and deemed income for the income test. If you withdraw it, Centrelink counts a lower balance for the assets test but it depends what you do with the money.

The Age Pension income test doesn't always count the actual income you receive – sometimes they use a complicated calculation called deeming. Deeming means Centrelink is assuming your financial investments, such as super, give you a certain investment return as income.

Deeming rates 2022-23:

The government's current deeming rates as at 12 September 2022 are:

Deeming rate Lower rate 0.25% Upper rate 2.25%
Single First $56,400 of investments Anything over $56,400
Couple where one person receives a pension already First $93,600 of investments Anything over $93,600
Couple where neither person receives the pension yet First $46,800 of each of your own and shared investments Anything over $46,800

Yes, you can still work and get the Age Pension. Your income from working does count towards the Age Pension income test, though. So how much you can get in pension payments (a full pension or part pension) depends on how much you earn from your job. Find out more.

The Work Bonus is a rule that means the first $300 of income you earn from working for the fortnight is not counted towards the income test.

If you earn less than $300 from work in a fortnight, the "unused" part of your Work Bonus goes to a Work Bonus income bank. So you can "store" up to $7,800 for later fortnights when you might earn more than $300 – and the income bank doesn't expire.

Using the Work Bonus and the Work Bonus income bank means that you can keep getting the Age Pension at your normal rate (a full pension or part pension) while still working.

Accurate as of 20 March 2023.

That’s all for now

The income test is only part of the Centrelink eligibility test to see if you can get the Age Pension, so make sure you check the other requirements as well.

Return to Age Pension & Super

Make sure you didn’t miss Starting age and Assets test

Ready to make a plan?

If you’re confident you understand your eligibility, here’s what you can do next.

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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.

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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.

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Apply for other government benefits for seniors

Some of the other benefits (apart from the Age Pension) available to help retirees include:

Create your retirement income

If you retire with our award-winning retirement products, you can mix and match to create the best combination with your super – and the Age Pension if you can get it.

Transition to retirement income account

You are: Under 65, at the age you can get your super but not yet retired.

You get: Regular payments from your super while still working.

Retirement income account

You are: Aged 65 or over, or you've reached the age you can get your super and permanently retired.

You get: Tax-free payments from your super as long as you have a balance.

QSuper Lifetime Pension

You are: Aged from 60 up to your 80th birthday and permanently retired.

You get: Tax-free fortnightly payments for the rest of your life.

Footnotes

1 Sue is not a real member, but a hypothetical case study provided for illustrative purposes only. Additionally, figures may be rounded for ease of understanding. Members should seek advice from a qualified licensed professional, regarding their own circumstances. This is not a recommendation for any products, and you should always read the relevant PDS and seek advice from a qualified, licensed professional about your own circumstances.

2 Under the 2022 means test rules, 60% of your purchase price is assessed until you reach the life expectancy for a 65-year-old male (currently 84 years old according to the ABS), or a minimum of 5 years, and 30% thereafter.