Australian Age Pension rates 2023

The Age Pension is the country’s main income support payment from the Australian Government for those who are eligible and have reached retirement age.

How much you get depends on your own circumstances but the Age Pension is designed to help if you don’t have access to enough funds of your own in retirement.

Data from the Australian Government shows there were 2,559,268 people claiming the Age Pension in September 2022. About two-thirds (68%) were on a Full Pension, the rest on a part pension. That claim figure is slightly down on the 2,574,643 for September the year before.

How does the Age Pension work?

The Age Pension is paid fortnightly by Centrelink, a division of the Australian Government agency Services Australia.

How much you can get depends on how much other income you receive and how much your assets are worth. It also depends on whether you’re single, in a couple relationship or still part of a couple but separated from your partner due to ill health.

You may be entitled to get some pension supplements to help you meet daily household and living expenses. For example, an Energy Supplement payment may be added, if you qualify, to help meet your energy costs.

The table below shows the maximum rates payable each fortnight at the time of writing. You may not be entitled to the full amount, or even any payment, depending on your circumstances.

Normal Age Pension rates

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Source: 23/12/2022 Services Australia.

Am I eligible for the Age Pension?

You are eligible to get the Age Pension if you meet a number of conditions, such as:

• reaching the qualifying age
• meeting income and assets test, and
• being an Australian resident, normally for at least 10 years.

What is the qualifying age?

The qualifying age varies depending on when you were born. The qualifying age was 65 until July 2017, but since then it’s been increasing by six months every two years until it reaches 67 on 1 July 2023.

Services Australia says the qualifying age is currently 66 years and 6 months for people born from 1 July 1955 to 31 December 1956.

If your birthdate is on or after 1 January 1957, you’ll have to wait until you turn 67. This will be the Age Pension age from 1 July 2023

Read more: What to do when you retire: now you have the time

What are the income and assets tests?

To be eligible for the Age Pension you need to show that you don’t already have enough funds for retirement from any income you already get – such as from your super, if you have any – or assets that you own. Not everyone is entitled to get the government payment.

The income test

Just because you’ve retired doesn’t mean you have to give up work entirely. You can still take up paid employment and receive payments from your super account but there is a limit on how much you can earn before the government will start to reduce your Age Pension payments.

Services Australia says how much you can earn depends on whether you’re single or in a couple relationship.

Single

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Source: 23/12/2022 Services Australia

Earn too much in a fortnight – known as the cut-off point – and you won’t be eligible for any Age Pension payments. That cut-off point may vary if you receive other allowances, so the table below is just a guide from Services Australia at the time of writing.

Age Pension cut-off point

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Source: 23/12/2022 Services Australia

What counts as income for the income test?

Income includes anything you earn, derive or receive for your own use or benefit, any profits you receive and regular payments you get as a gift or allowance.

The income Services Australia looks at isn’t just money earned, it can include any goods, services or other benefits you get in return for an item, action or promise. It also includes any income from anywhere in the world, such as pensions paid from other countries.

Services Australia says it uses the gross amount in the income test, which is your total income before tax or any other deductions.

For this test, it says your income includes things such as:

• income from financial investments
• income from your superannuation fund
• employment income if you’re still working
• business profits, including profits from a farm
• dividends from share investments or trusts
• income from rental properties, boarders or lodgers
• reportable superannuation contributions made to your superannuation fund
• income from outside Australia, including non-Australian pensions

Some payments you get don’t count towards your income for this test, such as government allowances, rent assistance and scholarships for study or research.

Deeming and the income test

Some financial assets and investments are also deemed (that means assumed) to give you a certain amount of income, even if they’re not actually giving you income (or as much income) at the moment.

Deemed investments include:

• savings accounts
• term deposits
• managed investments
• share investments
• account-based income streams (such as account-based pensions).

For example, a term deposit often doesn’t give you interest (a type of income) until it matures, but Services Australia will assume it provides a small amount of interest throughout the term.

Services Australia says deeming is aimed at making the income test fair for everyone and means you will receive your Age Pension payments in a regular and predictable way, rather than having your payment change every time an investment produces income.

The deeming rates for singles are 0.25% for investments up to $56,400 and 2.25% for anything above that. For couples where at least one of you is receiving a pension, the rates are the same but the cut-off is $93,600 for your combined assets.

An investment is only exempt from deeming in certain limited circumstances, such as if you can show that the investment has failed completely. But that doesn’t include investments that have simply performed poorly, such as shares with negative returns.

The assets test

As well as your income, Services Australia also assesses how much you own in assets when determining your eligibility for the Age Pension.

Your assets both in Australia and overseas will be assessed. If their value is over a certain threshold then your Age Pension may be reduced, or possibly denied.

Your assets are valued as to what you’d get if you sold them at market value, minus any debt owed on any of those assets.

Assets include any:

• financial investments
• home contents, personal effects and vehicles
• real estate, annuities, income streams and superannuation pensions
• sole traders, partnerships, private trusts and private companies.

The assets test doesn’t include your principal home and up to the first two hectares of land it’s on.

If you’re on a full Age Pension then Services Australia says your payments may be reduced if you have assets valued over the amounts listed below, which are current at the time of writing. Other limits may apply depending on your circumstances, so use this only as a guide.
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Source: 23/12/2022 Services Australia

What is the residence test?

You must be an Australian resident for at least ten years in total to receive the Age Pension, with at least one stay lasting a minimum of five years. Generally, holidays overseas don’t count as a break in your residence in Australia but you might want to check in advance if you’re planning any long or frequent holidays overseas.

There are exceptions to the residence test for certain people, for example, for people who lived or worked in a country that has an international social security agreement with Australia, or for refugees and former refugees.

What happens to my Age Pension if I leave Australia?

If you’re already receiving an Age Pension payment but are planning to leave Australia, then that may affect your payments.

If your trip overseas is for less than six weeks then generally you should see no changes to your payments.

If the trip is for longer than six weeks you may see a reduction in any supplementary payments. In particular, Services Australia says the Energy Supplement will stop and the Pension Supplement will drop to the basic rate.

If your stay away overseas is for 26 weeks or longer then your pension payments may be reduced if you have been an Australian resident for fewer than 35 years.

In all cases, you would be wise to let Services Australia know your travel plans before you leave to see how your payments may be affected.

What if my situation changes?

If your situation changes at any time while you are receiving the Age Pension or after you’ve made a claim to receive the Age Pension in Australia, you need to let Services Australia know.

You need to do this within 14 days (because the payment is made fortnightly). If you don’t, Services Australia says you may have to pay back any extra money it gives you.

Services Australia says things you must tell it about include when:

• you change or correct your name
• your address changes
• your income or assets change
• your partner’s income or assets change
• you stop living with your partner
• your partner dies
• you marry or start living with your partner
• you’re leaving the country, either temporarily or to live somewhere else.

Is the Age Pension a fixed rate or indexed?

The Age Pension rates are usually indexed twice a year to try to make sure they are still in touch with the cost of living and the average wages that Australians earn.

The cost of living is measured by growth in the Consumer Price Index (CPI, also known as inflation).

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