Estimate your fortnightly Age Pension payment based on the income test and assets test (single, homeowner).
Based on 2024 single homeowner rates and thresholds (example)
This calculator estimates the fortnightly Age Pension payment for a single Australian homeowner, based on Services Australia's income test and assets test. The Age Pension is a government income support payment for eligible older Australians administered by Services Australia (Centrelink). Your actual pension entitlement is determined by whichever test — the income test or the assets test — produces the lower pension payment, so both must be calculated and compared. This calculator uses 2024 single homeowner rates and thresholds as examples — actual rates are indexed and updated by the government regularly.
The Age Pension is reduced (tapered) as income and assets increase beyond certain thresholds. Both tests are applied and the test that produces the lower pension determines the payment.
Income Test (2024 example rates for single): Full pension (≈A$1,144.40/fortnight) if income ≤ A$204/fortnight. Pension reduces by A$0.50 per A$1 of income above A$204/fortnight. Pension cut out entirely when fortnightly income ≈ A$2,492.
Assets Test (2024 example rates for single homeowner): Full pension if assets ≤ A$301,750. Pension reduces by A$3 per fortnight per A$1,000 of assets above A$301,750. Pension cut out entirely at approximately A$686,250 in assets.
Example: Single homeowner with A$10,000 annual income and A$250,000 in assessable assets: Income test: fortnightly income = A$10,000 ÷ 26 ≈ A$384.62. Reduction = (A$384.62 − A$204) × 0.50 = A$90.31. Pension under income test ≈ A$1,054. Assets below threshold of A$301,750 → assets test pension = full A$1,144.40. Lower of the two (income test) = approximately A$1,054/fortnight. (Example rates only — check Services Australia for current rates.)
The Age Pension is Australia's government-funded income support payment for older Australians who meet age and residency requirements and pass the income and assets means tests. The current Age Pension age is 67 years for people born on or after 1 January 1957. To be eligible, you must be an Australian resident and have been a resident for at least 10 years in total (including at least 5 continuous years). The maximum Age Pension rate for a single person is approximately A$1,144.40 per fortnight (as of 2024 — indexed twice yearly to CPI or the Pensioner and Beneficiary Living Cost Index, whichever is higher). The pension is paid fortnightly by Services Australia (Centrelink). The income test uses "deeming" for financial assets — instead of the actual interest and dividends earned, Centrelink deems a standard rate of return on financial assets (currently 0.25% on assets up to the deeming threshold per person, and 2.25% above that threshold — rates set by the government). This means the actual income earned on bank accounts or shares may differ from the deemed income Centrelink uses in the income test. The Work Bonus allows eligible pensioners to earn up to A$300/fortnight from work without it being counted under the income test (with a maximum accumulated credit of A$11,800). The family home is generally excluded from the assets test (but a person\'s home affects whether they use "homeowner" or "non-homeowner" thresholds — homeowners have lower asset thresholds). Superannuation balances for people of pension age are included in the assets test as financial assets, and the deemed income on super is counted in the income test.
The Age Pension age in Australia is currently 67 years for people born on or after 1 January 1957. The pension age was progressively increased from 65 to 67 between 2017 and 2023. To be eligible, you must also meet Australian residency requirements (at least 10 years total, including at least 5 continuous years) and pass the income and assets means tests. Age Pension age is separate from your superannuation preservation age (currently 60 for people born after 30 June 1964), so you may be able to access your superannuation before you are eligible for the Age Pension.
Deeming is the method Centrelink uses to calculate "income" from financial assets (bank accounts, shares, managed funds, superannuation in pension phase, and other financial investments) for the income test. Instead of using the actual income earned, Centrelink applies a standard deeming rate to the balance of your financial assets: a lower rate (currently 0.25%) applies to assets up to a threshold, and a higher rate (currently 2.25%) applies above that threshold. These rates are set by the government and can change. If your investments earn less than the deemed rate, you are assessed on higher income than you actually receive — deeming can therefore penalise conservative savers in low-interest environments.
Your primary residence (the family home) is generally excluded from the Age Pension assets test — it is not counted as an assessable asset regardless of its value. However, being a homeowner affects the asset threshold used in the assets test: homeowners have a lower asset threshold than non-homeowners (who have a higher threshold to compensate for not having the benefit of an owned home). If you sell your home and move the proceeds into other assets, those proceeds become assessable assets (subject to some temporary exemptions during the transition period). Rental income from a granny flat or boarder in your home may also be assessable income.
Yes — the Work Bonus allows pensioners to earn up to A\$300 per fortnight from employment or self-employment income without it counting in the income test. Any unused Work Bonus accumulates in a "bank" (up to A\$11,800), which can be used to offset future work income. Above the Work Bonus amount, employment income is counted under the income test at the standard 50-cent taper rate. The Work Bonus does not apply to other types of income (investment income, rental income, etc.).
For people of Age Pension age, superannuation balances (whether in accumulation or pension phase) are generally included as assessable assets in the assets test, with deemed income counted in the income test. For a superannuation account-based pension (ABP), the account balance is assessed as a financial asset and deeming applies. If you are below Age Pension age but your partner is of pension age, your superannuation in accumulation phase is not counted (because you cannot access it). The interaction between superannuation drawdown strategies and the Age Pension is complex — a financial adviser can help optimise the balance between super drawdowns and the pension to maximise combined retirement income.
The Age Pension payment for eligible pensioners includes the base pension rate plus a Pension Supplement (a fortnightly amount that replaces several previous allowances including utilities allowance, telephone allowance, and pharmaceutical supplement — approximately A\$81.60/fortnight for singles as of 2024). Pensioners also receive an Energy Supplement (approximately A\$14.10/fortnight for singles). Both supplements are subject to the same income and assets tests as the base pension and are included in the maximum fortnightly pension rate shown in this calculator. The Services Australia website shows the current breakdown of each component.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only and do not constitute financial or social security advice. Age Pension rates, income test thresholds, assets test thresholds, and deeming rates are set by the Australian Government and are indexed and updated regularly — the figures used are examples based on 2024 single homeowner rates and may not reflect current rates. This calculator is a simplified guide and does not model couple rates, non-homeowner thresholds, the Work Bonus, gifting rules, or other individual circumstances. Contact Services Australia (Centrelink) or a qualified financial adviser for a personal pension assessment.