Age Pension Australia: Rates, Eligibility, and Future Payments
Retirement finances can often seem complex. For many Australians, the Age Pension becomes a crucial part of their income later in life. It’s important to understand how much the Age Pension is in Australia, what makes you eligible, and when payments might change. This guide explains the Australian Age Pension clearly, helping you make informed financial decisions.
What is the Age Pension and Your Potential Payment?
The Age Pension is a government payment. It provides income support for older Australians. Your payment amount, often called age pension payments, depends on several key factors:
- your relationship status,
- your income, and
- your assets.
As of the current period (March 2025 to September 2025), maximum full Age Pension rates per fortnight are:
- Single pensioner: $1,149.00
- Couple (each): $866.10 each
- Couple (combined total): $1,732.20
- Couple (each) living apart due to ill health: $1,149.00 each
These figures generally include the basic rate, a pension supplement, and an energy supplement. For the most precise and current figures, always check the official Services Australia website. You might also qualify for additional support, such as Rent Assistance or an advance payment.
When Do Age Pension Rates Change?
Age Pension rates are reviewed and adjusted twice a year, usually on 20 March and 20 September. These changes reflect the cost of living, mainly through indexation based on factors like the Consumer Price Index (CPI). You do not need to take any action; these increases apply automatically.
Income and asset test thresholds also change, typically in March, July, and September. For instance, 1 July 2025 brought adjustments to both income and asset thresholds. These changes could affect the amount of full Centrelink Age Pension you receive, or even make you newly eligible.
The next scheduled review for rates will occur in September 2025.
Who Qualifies for the Age Pension in Australia?
To qualify for the Age Pension, you need to follow certain rules. These rules are about your age, where you live, and your finances, including income and assets.
Age
The Age Pension age in Australia is currently 67 years old for those born on or after 1 January 1957.
Australian Residency
You must generally be an Australian resident. This means you have lived in Australia for at least 10 years, with at least five of those years being continuous.
Some exceptions apply to people from countries with social security agreements or for refugees. Always review Services Australia guidelines for complete residency rules.
Income and Assets Test
Services Australia uses both an income test and an assets test. These tests determine if you qualify and how much full Centrelink Age Pension you will receive. The test that results in the lower pension payment applies to you
Income Test (from 1 July 2025)
This test assesses all your income sources, including earnings from:
- employment,
- investments, and
- superannuation.
Full Pension Income Limits (Fortnightly):
- Single: Up to $218
- Couple (combined): Up to $380
Part Pension Income Cut-off Points (Fortnightly):
- Single: $2,516.00
- Couple (combined): $3,844.40
If your income goes over the “free area” (e.g., $218 for singles), your pension reduces.
The Work Bonus scheme helps you earn more from work without affecting your Age Pension.
You can earn up to $300 per fortnight from employment without affecting your payment.
You can also build an accrued Work Bonus balance of up to $11,800.
For couples, deeming rates apply to financial assets:
- 0.25% for amounts up to $106,200
- 2.25% for amounts above that
Assets Test (from 1 July 2025)
This test evaluates the value of your assets. These include:
- other properties (not your main home),
- cars, and
- financial investments.
Asset limits vary depending on whether you own your home and whether you’re single or part of a couple.
Full Pension Asset Limits:
- Single Homeowner: $321,500
- Single Non-Homeowner: $579,500
- Couple Homeowner (combined): $481,500
- Couple Non-Homeowner (combined): $739,500
Part Pension Asset Cut-off Points:
- Single Homeowner: $704,500
- Single Non-Homeowner: $962,500
- Couple Homeowner (combined): $1,059,000
If your assets exceed the lower threshold, your pension reduces by $3 per fortnight for each $1,000 above that limit.
If your assets are above the cut-off points, you will no longer receive the Age Pension.
Keep Your Information Updated
It is vital to report any changes in your income and asset situation to Services Australia. This ensures you continue receiving the correct Age Pension amount.
You can use online tools or seek help from Services Australia’s Financial Information Service. Even a part pension can significantly help boost your retirement income.
Will the Age Pension Stop in Australia?
Many people wonder, will the old age pension stop in Australia? This is a common question.
Currently, there are no plans or laws to stop the Age Pension in Australia. It remains a core part of the Government’s social security system, offering a safety net for retirees.
While the pension itself isn’t expected to end, the rules may change — such as eligibility age or income/asset test thresholds. These changes reflect economic and demographic trends, such as our aging population.
For most Australians, especially those with lower or middle incomes, the Age Pension will continue to be a key source of retirement income, alongside superannuation and personal savings.
Diversifying Your Retirement Income: Other Options
While the Age Pension is important, many Australians look for extra income during retirement. Diversifying your investments can provide more stability and financial confidence.
Trivesta Protected Yield Fund (TPYF)
One such option is the Trivesta Protected Yield Fund (TPYF) — a fixed-income investment fund that:
- targets a 10% annual return (net of fees),
- pays 0.5% monthly income, and
- offers bonus payments of 2% in the sixth and twelfth months.
TPYF provides a fixed monthly income, unlike typical cash or bond funds.
It’s also fully redeemable monthly with no penalties, offering flexibility — unlike term deposits that charge for early withdrawals.
Adding investments like TPYF can strengthen your financial base alongside the Age Pension and superannuation.
Maximising Your Age Pension Entitlements
To get the most from your entitlements:
- Stay informed on pension rate updates,
- Understand how deeming rates affect your payments,
- Regularly check the Services Australia website, and
- Consider speaking with a financial adviser.
The Age Pension system continues to adapt to Australia’s future. By staying updated — especially about how much the full Centrelink Age Pension is and when the next aged pension increase is — you’ll be better prepared for a secure retirement.
