The Age Pension is a taxable income support payment from Services Australia. How much you get depends on your age and residence, and on the lower of two tests: the income test and the assets test. Superannuation is treated differently before and after you reach Age Pension age, which is why a large super balance can leave a pension unchanged for years and then start to reduce it.

This explainer uses the official rates and thresholds that applied from 20 September 2026. The Department of Social Services adjusts payment rates every 20 March and 20 September, and it reviews assets test limits in March, July and September. Always check the current Services Australia figures before you rely on a number. It sits with the Never Lose Interest super calculator guide, which covers how much super you may need and when you can access it, and with buying versus renting, because the principal home is generally exempt from the assets test.

This is general information only. It is not personal advice, and it is not a calculation of your Age Pension. Services Australia assesses your claim on your own circumstances.

Who can get the Age Pension?

You generally need to be 67 or older. You also need to meet residence rules. In outline, you must be an Australian resident and in Australia on the day you claim, and you usually need 10 years of Australian residence, including at least five continuous years. Some exemptions apply, including in certain refugee and international social security agreement cases. The official detail is on the Services Australia residence pages.

Reaching Age Pension age is not the same as reaching your super preservation age. For anyone born from 1 July 1964, preservation age is 60, as explained in the super calculator guide. You can often access super earlier than the Age Pension, and the two systems assess your savings in different ways.

Age Pension age for your partner also matters. Once your partner reaches Age Pension age, Services Australia counts their super in the tests even if they are not receiving a payment.

How much is the Age Pension from 20 September 2026?

These are the maximum fortnightly rates Services Australia published, last updated 20 September 2026, before tax:

Per fortnight Single Couple each Couple combined Couple apart due to ill health
Maximum basic rate $1,135.40 $855.90 $1,711.80 $1,135.40
Maximum Pension Supplement $88.20 $66.50 $133.00 $88.20
Energy Supplement $14.10 $10.60 $21.20 $14.10
Total $1,237.70 $933.00 $1,866.00 $1,237.70

A small group of people who were on a part pension on 19 September 2009 may still be on transitional rates, which are lower. The Age Pension is taxable. Services Australia does not automatically withhold tax, but you can ask it to do so.

You get the lower of the income-tested rate and the assets-tested rate. If either test reduces the payment to nil, you get nil for that fortnight, unless a higher cut-off applies because of Rent Assistance or the Work Bonus.

How does the income test work?

For most pensioners, from 20 September 2026:

Situation Income free area (per fortnight) Reduction above the free area
Single $226 50 cents for each dollar over $226
Couple, combined $396 25 cents for each person's pension for each combined dollar over $396

If a single person's assessable income is $326 a fortnight, the pension reduces by 50 cents times $100, or $50 a fortnight.

The fortnightly income cut-off, above which the payment is nil, is $2,701.40 for a single person and $4,128.00 combined for a couple living together, or $5,346.80 combined if a couple lives apart due to ill health. Those cut-offs can be higher if you get Rent Assistance or the Work Bonus, and lower if you do not live in Australia.

Income includes employment income, which you must report, and deemed income from financial assets. Actual rent from an investment property is assessed as income. The family home is not a financial asset for deeming, although selling it can bring the sale proceeds into deeming, as explained below.

How does the assets test work?

From 20 September 2026, you can still get a full pension if your assessable assets are at or below the following limits. The couple limits are combined, not per person.

Situation Homeowner Non-homeowner
Single $333,000 $600,000
Couple, combined $499,000 $766,000

A part pension cuts out when assets are over:

Situation Homeowner Non-homeowner
Single $745,750 $1,012,750
Couple, combined $1,121,000 $1,388,000
Couple, separated due to illness, combined $1,324,500 $1,591,500

The Department of Social Services Social Security Guide states that, from 1 January 2017, every $1,000 of assets over the full-pension free area reduces the assets-tested pension by $3 a fortnight (for a single person, or for a couple combined). That taper lines up with the official cut-off figures. For example, the gap between the single homeowner full-pension limit of $333,000 and the cut-off of $745,750 is $412,750, and $3 times 412.75 is $1,238.25, which is in line with the maximum pension of $1,237.70 after rounding.

The home you live in as your principal home is generally not counted in the assets test, which is why the homeowner limits are lower than the non-homeowner limits. Other property, vehicles, household contents, money owed to you and assets outside Australia can count. A mortgage on an investment property usually reduces the value of that asset. If you get Rent Assistance, the assets cut-off is higher.

Your rate is the lower of the two tests. A person can have income in the free area and still have the pension reduced, or cut off, by the assets test, or the other way around.

When does super count, and how is it deemed?

While you are under Age Pension age, Services Australia does not count your super, or your partner's super, in the income and assets tests if the fund is not paying a superannuation pension. If the fund is paying a pension, that income stream is assessable, and the method depends on the type of income stream.

When you reach Age Pension age, super is counted in both tests:

  • in the assets test, at the balance on your latest statement
  • in the income test, under the deeming rules

The same rules apply to your partner's super when they reach Age Pension age, even if they are not getting a payment.

Deeming assumes financial assets earn a set rate, whether they actually earn more or less. If you earn more than the deemed rate, the extra does not count as income. If you earn less, you are still assessed as if you earned the deemed rate.

From 20 September 2026, Services Australia applies:

  • 1.75% to the first $66,800 of a single person's financial assets, and 3.75% to the rest
  • 1.75% to the first $110,600 of a couple's combined financial assets, if at least one of you gets a pension, and 3.75% to the rest
  • if you are a member of a couple and neither of you gets a pension, 1.75% on the first $55,300 of each person's own and share of joint financial assets, and 3.75% on the rest

Financial assets include savings and term deposits, managed investments, listed shares, some income streams (including many account-based super pensions) and some gifts. They do not include the home you live in, or, generally, the value of an investment property, although the rent from that property is income.

A simple single-person example, using those rates: $200,000 of financial assets, including super, is deemed to earn 1.75% of $66,800 plus 3.75% of $133,200, which is $1,169 plus $4,995, or $6,164 a year. That is about $237 a fortnight. It is $11 above the $226 free area, so it would reduce a full pension by about $5.50 a fortnight under the income test, before any other income. The $200,000 is also an asset. For a single homeowner, it is under the $333,000 full-pension assets limit, so the assets test would not reduce the pension in this example. Other assets could change that.

Most funds allow unrestricted access from age 65. If you cannot access your super, you may be able to have it exempted from the tests. That is a Services Australia and ministerial decision, not an automatic rule. Speak with a Financial Information Service officer.

What happens if I withdraw super, or sell my home?

Taking money out of super does not, by itself, change your Age Pension. What you do with the money can. If you leave it in a bank account, or use it to buy an income stream, Services Australia will count it in the tests. If you use it to reduce a mortgage on the home you live in, you may reduce assessable assets, because that home is generally not counted. That is a personal decision, not a general rule, and it can affect cash flow, aged care and your estate.

If you sell your principal home on or after 1 January 2023, Services Australia will deem the sale proceeds you intend to use to buy, build, rebuild, repair or renovate a new principal home at the lower deeming rate, currently 1.75%. Extra proceeds held in a financial asset are assessed at the usual deeming rates. Tell Services Australia within 14 days if you sell your home.

Giving assets away can still leave them in the assessment for a period, under the official deprivation rules. Check those rules before you gift a large amount in the hope of increasing a pension.

Downsizer contributions to super can also affect an income support payment. Get advice, or speak with a Financial Information Service officer, before you use that measure.

Frequently asked questions

Does a large super balance stop me getting the Age Pension?

It can, once you have reached Age Pension age and the balance, plus your other assessable assets or deemed income, goes over the limits. Before Age Pension age, an accumulation super balance that is not paying a pension is generally not counted.

Is an account-based pension treated as income at the amount I withdraw?

Usually not in the way people expect. For most account-based pensions, Services Australia uses deeming on the account balance, not the amount you actually draw, once the deeming rules apply. Check the assessment for your particular income stream.

Do I have to spend my super before I can claim?

No. The tests look at what you have and what you are deemed to earn, not at a requirement to exhaust super first.

Is the Age Pension on top of my super, or instead of it?

It can be either a full pension, a part pension or nothing, depending on the tests. Many people receive a part pension as well as drawing on super. The super calculator explainer discusses published retirement spending guides that already allow for the Age Pension where it applies.

Can I get the pension if I still work?

Yes, if you meet the other rules, but employment income is assessed and must be reported. The Work Bonus can help some pensioners keep more of their payment when they work. Check the current Services Australia rules if you are working.

General information warning

This article is general information only. It is not personal advice, social security advice or a calculation of your Age Pension. It does not take into account your objectives, financial situation or needs. Rates and thresholds change several times a year. Consider speaking with a Services Australia Financial Information Service officer, a registered tax agent or a licensed financial adviser before you withdraw super, sell a home or claim a pension.

Sources

Last reviewed: November 2026.