Ruqayyah Snyder
The Age Pension is the primary source of income for many older Australians, providing core funding for about seven out of ten retirees and at least some income to eight in ten people over 65. To be eligible for the Age Pension, one must be at least 67 years of age and an Australian resident, having lived in the country for at least 10 years. The pension rates are reviewed and typically increased on 20 March and 20 September each year, with the base rate being recalculated every March and September. The latest rates, effective from 20 March 2025, are $1,149.00 per fortnight ($29,874 per year) for singles, $866.10 per fortnight ($22,519 per year) for each person in a couple, and $1,732.20 per fortnight ($45,037 per year) combined for couples.
| Characteristics | Values |
|---|---|
| Date | 20 March 2025 to 19 September 2025 |
| Single | $1,149.00 per fortnight ($29,874 per year) |
| Couple (each) | $866.10 per fortnight ($22,518.60 per year) |
| Couple (combined) | $1,732.20 per fortnight ($45,037.20 per year) |
| Couples separated due to illness (each) | $1,149.00 per fortnight ($29,874 per year) |
| Couples separated due to illness (combined) | $2,298.00 per fortnight ($59,748 per year) |
| Qualification criteria | Age 67 or older, Australian resident, lived in Australia for at least 10 years |
| Payment frequency | Fortnightly |
| Payment options | Weekly, Quarterly |
| Other benefits | Rent assistance, Work Bonus, Pensioner Concession Card, Pension advance payments, access to cheaper medicines and medical services |
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What You'll Learn
Income and assets tests
The Australian Government updates the Age Pension payment rates and the means tests three times a year, in March, June, and September. The base rate of the Age Pension is recalculated every March and September, with the new rates published on or about the 20th of these months. The base rate is indexed using a mix of three different measures: the Consumer Price Index, the Pensioner Beneficiary Living Cost Index, and the Male Total Average Weekly Earnings. The thresholds for the income and assets tests are indexed and adjusted along with the rates in March and September each year.
Centrelink, as the delivery agency for Services Australia, calculates your entitlement based on a means test. This means test has two separate parts: the income test and the assets test. The income and assets tests are used to work out how much Age Pension you get and to assess if you can get a payment. Most types of income count in the income test, including any income from outside Australia. Employment income may affect your rate of Age Pension, and you must report any employment income you and your partner get, even if it's under the income cut-off point. The cut-off point may be higher if you get Rent Assistance or Work Bonus. The Work Bonus increases the amount an eligible pensioner can earn from work before it affects their pension rate. For example, if you've just started receiving the age pension, your employment income may be reduced by the fortnightly work bonus of $300.
If you're receiving the Age Pension, you may be entitled to rent assistance, including any fees you may be paying to a retirement village, provided that the Australian government isn't already paying a subsidy to the facility where you live. To receive assistance, you must be paying a minimum amount of rent. These rates are adjusted in March and September each year based on movements in the CPI. If you pay more than these amounts, you're entitled to 75 cents of rent assistance for every dollar you pay over the threshold, up to a maximum amount.
If you receive the Age Pension, you'll automatically be paid a pension supplement. You'll receive the maximum rate if you're eligible to receive the full pension, but if you're only eligible for a part pension (for example, if your income or assets exceed the thresholds in the Age Pension income or assets tests), your pension supplement will be reduced proportionally until it reaches the minimum amount.
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Eligibility criteria
To be eligible for the Age Pension in Australia, you must meet the following criteria:
Age
You must be 67 years of age or older, depending on your date of birth. The age requirement for the Age Pension is currently 67, but this may vary depending on when you were born.
Residency
You must be an Australian resident and have lived in Australia for at least 10 years. The specific Australian residency rules are outlined on the Services Australia website.
Income and assets
Your income and assets will be assessed to determine your eligibility and the amount of Age Pension you will receive. Both your income and assets must be below certain limits to qualify for the Age Pension. If your income or assets exceed the thresholds, your pension payment may be reduced or you may not be eligible at all.
The income test considers any employment income, including income from outside Australia. You must report any income you or your partner receive, even if it is below the income cut-off point. Relationship changes can also affect your payment rate.
The assets test evaluates the value of your assets, such as any investment properties. Your family home is not counted as an asset if you live in it, but selling it could impact your pension. Assets outside Australia will be converted into the equivalent Australian dollar amount.
Other criteria
In addition to the age, residency, and financial criteria, there are other factors that may affect your eligibility for the Age Pension. These include:
- Relationship status: The rates for the Age Pension differ for singles and couples, and couples separated due to illness may receive special consideration.
- Health: If you have a Commonwealth Seniors Health Card, you may be eligible for additional benefits and supplements.
- Rent: If you are paying a minimum amount of rent, you may be entitled to rent assistance.
- Transitional pensions: If you were receiving a part pension in 2009, you may be on a transitional pension with different rates.
It is important to note that the eligibility criteria and pension rates are subject to change. The Australian government updates the Age Pension payment rates and means tests three times a year (March, July, and September), so it is crucial to stay informed about your eligibility and entitlements.
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Pension supplements
The pension supplement is automatically included in Age Pension payments. However, the amount received may vary depending on factors such as income and assets. Those who qualify for the full pension will receive the maximum supplement, while those on a part pension may have their supplement reduced proportionally if their income or assets exceed certain thresholds. This reduction continues until the pensioner reaches the minimum supplement amount.
The Australian government regularly reviews and adjusts Age Pension rates, including pension supplements. These adjustments occur three times a year in March, September, and December, with the next review expected on 20 September 2025. The review takes into account changes in the Consumer Price Index (CPI), Male Total Average Weekly Earnings, and the Pensioner and Beneficiary Living Cost Index.
In addition to the pension supplement, Age Pension recipients may also be entitled to other benefits and concessions. These include rent assistance, which is available to those paying a minimum amount of rent, and the Pensioner Concession Card, which provides access to cheaper medicines and medical services. Furthermore, the Work Bonus scheme allows pensioners to earn a certain amount from employment or self-employment without affecting their pension rate, helping them to increase their income.
The Age Pension is a crucial source of income for many Australian retirees, with approximately seven out of ten retirees relying on it as their core funding. It is available to individuals aged 67 or older who meet the residency requirements and income and asset thresholds. For those under 67, other support options may be available, such as the JobSeeker Payment.
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Rent assistance
If you receive the Age Pension and pay rent, you may be entitled to rent assistance. This includes any fees paid to a retirement village, provided that the Australian government does not already pay a subsidy to the facility. To receive assistance, you must be paying a minimum amount of rent. The amount of rent assistance you can get depends on how much rent you pay. For every dollar you pay over the threshold, you'll get 75 cents in assistance, up to a maximum amount.
You don't need to submit a claim for rent assistance. However, you may need to complete a Rent Certificate or provide a lease agreement if asked. Services Australia will check if you can get rent assistance when you make a new claim for certain payments. If you already get a payment from them, they'll check if you can get rent assistance when you inform them of any of the following:
- A change in your family circumstances, such as separating from your partner or a change in the number of children in your care
- A change in your payment rates during the year
It's important to keep up to date with the Age Pension payment rates and means tests, as the Australian Government updates them three times a year.
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Work Bonus
The Work Bonus is a scheme that allows eligible Australian pensioners to earn more income from working without reducing their pension rate. This means that pensioners can work and earn more without it affecting their pension payments. The Work Bonus reduces the amount of eligible income that is calculated in the income test, which is used to work out the rate of payment.
To be eligible for the Age Pension, you must be at least 67 years old and meet the residency requirements. There is no official retirement age in Australia. The Age Pension is the primary source of income support for older Australians, and many rely on it as their main or only source of income. It is important to note that employment income may affect your rate of Age Pension, and this income must be reported.
The Australian Government updates Age Pension payment rates and means tests three times a year. The base rate is recalculated every March and September, with the new rates published on or about the 20th of March and September. The latest rates, applicable from 20 March 2025 to 19 September 2025, are as follows:
- Single: $1,149.00 per fortnight (approximately $29,874 per year)
- Couple (each): $866.10 per fortnight (approximately $22,519 per year)
- Couple (combined): $1,732.20 per fortnight (approximately $45,037 per year)
- Couples separated due to illness (each): $1,149.00 per fortnight (approximately $29,874 per year), combined $2,298.00 (approximately $59,748 per year)
The Age Pension provides core funding for about 7 out of 10 Australian retirees and at least some income to 8 in 10 people over 65. It is a significant source of income for most Australian retirees, with roughly 39% receiving the full Age Pension and 24% receiving a part pension.
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Frequently asked questions
The age pension rate in Australia depends on your income, assets, and other criteria. The pension rates are reviewed and increased on 20 March and 20 September each year. The latest rates are as follows:
- Single: $1,149.00 per fortnight ($29,874 per year)
- Couple (each): $866.10 per fortnight ($22,518.60 per year)
- Couple (combined): $1,732.20 per fortnight ($45,037.20 per year)
To be eligible for the Age Pension in Australia, you must be at least 67 years of age and an Australian resident. You must have lived in the country for at least 10 years. There are also residency requirements, and an income and assets test applies.
Age Pension payments are typically made fortnightly, with some exceptions. If you're having issues managing your money or are at risk of becoming homeless, you can apply to receive your payments weekly.
