The Australian Age Pension, explained in plain English
Who can get it, what it pays, and how the two means tests work — with the current figures and where to check them.
The Age Pension is Australia's main income support payment for people aged 67 and over. It is not automatic: you must meet the age rule, the residence rule, and pass two means tests — an income test and an assets test. Services Australia runs both tests and pays whichever result is lower.
Maximum rates at a glance
| Your situation | Maximum per fortnight |
|---|---|
| Single | $1,237.70 |
| Couple, each | $933.00 |
| Couple, combined | $1,866.00 |
| Couple separated due to illness, each | $1,237.70 |
The single maximum is made up of a basic rate of $1,135.40, a Pension Supplement of $88.20 and an Energy Supplement of $14.10. The Age Pension is taxable income, but tax is not automatically deducted — you can ask Services Australia to withhold it.
How the two tests work
Income test. You can have a certain amount of income each fortnight before your pension starts to reduce — the income free area. Above it, your pension reduces by 50 cents for each extra dollar (25 cents each for a couple). Assets test. You can hold a certain value of assets before your pension starts to reduce. Above it, your pension reduces by $3 a fortnight for every $1,000 over the limit. Your family home is generally exempt. Whichever test gives the lower pension is the one that applies.
All the guides
- Age Pension explained: age, residence and the basics
- Maximum rates: what the pension pays
- The income test: free areas, tapers and cut-offs
- The assets test: thresholds, the home exemption and the $3 taper
- Deeming: how your savings are assessed
- Work Bonus: earning while on the pension
- Couples: combined assessment, illness separation and one eligible partner
- Rent Assistance, supplements and concession cards
- Claiming: how, when and what to have ready
- First-payment checklist and 7 common mistakes
