Income test for Age Pension | Age Pension income test

Age Pension eligibility

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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.

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.

For more details, 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 $204/fortnight ($5,304/year)	Full Age Pension
Over $204	Partial Age Pension: payment reduces by 50 cents for each dollar over $204
$2,397.40/fortnight or more	No Age Pension

Current as at 20 December 2023. 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.

Couple living together

Combined income per fortnight	Your Age Pension
Up to $360/fortnight ($9,360/year)	Full Age Pension
Over $360	Partial Age Pension: payment reduces by 50 cents for each dollar over $360
$3,666.80/fortnight or more	No Age Pension

Couple living apart because of ill health

Combined income per fortnight	Your Age Pension
Up to $360/fortnight ($9,360/year)	Full Age Pension
Over $360	Partial Age Pension: payment reduces by 50 cents for each dollar over $360
$4,746.80/fortnight or more	No Age Pension

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

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

	Retirement Income account	Lifetime Pension
Age Pension income test	Deemed income =($60,400 x 0.25%) + ($39,600 x 2.25%) = $1,042	60% of actual income = $7,529 x 60% = $4,518 p.a.
Age Pension assets test	Current balance = $100,000	60% of purchase price = $100,000 x 60% = $60,000

So, if Centrelink was going to base their decision on the income test for Sue, then a Retirement income account may give her a better outcome. But if Centrelink bases their decision on the assets test for Sue, the Lifetime Pension may give Sue a better outcome. The best option for Sue depends on her whole situation, including what she owns and earns outside of super.

Find out more about the assets test.

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

*The money in your Accumulation account is only assessed if you or your spouse have reached pension age.

FAQs about the income test

How does it affect my Age Pension if I withdraw/draw down from my super?

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.

What are the deeming rates on super?

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.

Visit Services Australia to find out the current deeming rates.

Can you still work and get the Age Pension?

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.

What's the Work Bonus?

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 $11,800 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 December 2023.

How much can pensioners earn on the Age Pension?

It depends on a number of things, including how much super you have, and whether you pass the Age Pension eligibility rules.

That’s all for now

The income test is only part of the Centrelink's eligibility test to see if you can get the Age Pension. You'll also need to meet an assets test and the Age Pension starting age.

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.

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:

The 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)
The 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 support such as the Pensioner Concession Card, Disability Support Pension, Carer Payments/Allowances, and the Pension Loans Scheme

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: Regular payments from your super when you retire.

QSuper 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.

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.

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