Australian Age Pension Eligibility: Age, Income And Assets Tests Explained
- Future Accounting
- 7 days ago
- 4 min read
Updated: 6 days ago
Written by: Melissa Cunliffe
Planning ahead starts with understanding Australian Age Pension Eligibility rules
Understanding Australian Age Pension eligibility can help you plan for retirement with confidence. While the Age Pension can provide valuable support, it is designed as a safety net for Australians who do not have enough personal income or assets to fully fund their retirement.
Quick summary of Australian Age Pension eligibility
Australian Age Pension eligibility is based on:
Age Pension age: 67 years
Assets test: how much you own (different limits for homeowners and non-homeowners)
Income test: how much you earn (payments reduce once thresholds are exceeded)
Age Pension age requirement
One of the key requirements for Australian Age Pension eligibility is reaching Age Pension age. The current Age Pension age is 67 years.
Assets test thresholds and what Centrelink assesses
Centrelink uses an assets test to assess what you own (your assets) and determine whether you qualify for the Age Pension and, if you do qualify, how much you may receive.
Assets commonly assessed include:
Money in bank accounts
Shares, managed funds and other investments
Investment properties (not your principal home)
Vehicles, boats and caravans
Household contents and personal effects
Your principal home is generally not counted under the assets test, which is why the thresholds differ for homeowners and non-homeowners.
Current assets test thresholds (at time of writing):
Category | Full pension threshold | Part pension cut-off |
Single (homeowner) | $321,500 | $714,500 |
Single (non-homeowner) | $579,500 | $972,500 |
Couple (combined, homeowners) | $481,500 | $1,074,000 |
Couple (combined, non-homeowners) | $739,500 | $1,332,000 |
If your assets are over the full pension threshold, you may still receive a part Age Pension until you reach the cut-off limit.
Income test thresholds and how payments reduce
Centrelink also applies an income test as part of Australian Age Pension eligibility. This test assesses what you earn from sources such as employment, investments and some superannuation income streams.
If your assessable income is above the threshold, your Age Pension payment reduces progressively. Once income exceeds the cut-off point, the Age Pension reduces to zero.
Current income test thresholds (at time of writing):
Category | Full pension threshold (per fortnight) | Part pension cut-off (per fortnight) |
Single | $218 | $2,575.40 |
Couple (combined) | $380 | $3,934.00 |
How much is the full Age Pension paid per fortnight
If you meet Australian Age Pension eligibility requirements and qualify for the full rate, it is paid fortnightly. The current maximum full-rate amounts (including supplements) are:
Single: $1,178.70 per fortnight
Couple (combined): $1,777 per fortnight
Age Pension vs self-funded retirement: why planning early matters
It’s important to remember that the Age Pension is primarily intended for Australians who are not self-funded in retirement. If you are self-funded, you do not necessarily need to wait until age 67 to access your retirement savings.
In many cases, you may be able to access superannuation earlier by meeting a condition of release, such as reaching your preservation age and retiring.
For many Australians, the better long-term option is to start early and build financial independence so you can have more freedom and flexibility later in life. With the right planning, investing, and wealth-building strategies, you can work toward a retirement that suits your lifestyle rather than relying on government support.
For business owners, growing a strong and valuable business can be one of the most powerful ways to fund retirement. Depending on your goals, this can mean building stronger cash flow, improving profitability, investing wisely, and planning an eventual succession or business sale.
How Future Accounting can help you retire with confidence
At Future Accounting, we endeavour to assist small business clients achieve success, whatever that might look like for them. Our aim is to support you through every stage of the business cycle, so that when it is time to step back, you can retire in comfort and with confidence.
If you would like help with building your financial position, strengthening your business performance, or creating a longer-term plan for retirement, book an appointment with the Future Accounting team today. We would love to help you create a clearer pathway forward.
General information only. Figures and thresholds may change over time and depend on individual circumstances. Always seek tailored advice before making financial decisions.
Disclaimer
This article does not constitute financial advice and is for general information only. It does not take into account any individual’s personal objectives, situation or needs, and is not intended as professional advice. Any similarity to an individual’s personal circumstances and the examples provided in this article is purely coincidental. Any person acting upon such information without receiving specific advice, does so entirely at their own risk.
Authorisation under an Australian Financial Services Licence (AFSL) is not required in the provision of this article and the author plus Future Accounting Group Pty Ltd is not acting in its capacity as an Australian Financial Services Licence holder
Liability limited by a scheme approved under professional standards legislation.
