Age Pension boost means a little more to spend from 20 March 2025

Here are the maximum Age Pension payment rates that are in effect as of 20 March, paid fortnightly, along with their respective annual equivalents. Single payments rose by $4.60 per fortnight, while combined payments for couples increased by $7 per person. 

Payments last increased in September 2024, and are likely to change again when they are next assessed this coming September. 

Tip: Many people assume they’re not eligible for either a part- or full Age Pension and therefore apply late or miss out on this and other government benefits.  

Learn more about the $3 billion pot of money a million retirees mistakenly ignore, or check your Age Pension eligibility here.  

The government reviews the Age Pension income and assets test thresholds in July each year. The upper limits, also known as thresholds, increase in March and September each year in line with Age Pension payment increases. 

Whether you are eligible for the Age Pension depends on your age, residency, and your income and assets. 

If your income and assets are below certain thresholds you may be eligible.  

When determining how much you’re entitled to receive under the income and assets tests, the test that results in the lower amount of Age Pension applies. 

Here are the income and assets test thresholds that apply as at 20 March, compared with previous thresholds. 

The lower assets test threshold determines the point where the full Age Pension starts to reduce, while the upper assets test thresholds determine what the cut-off points are for the part Age Pension.  

If the value of your assets falls between the lower and upper assets test thresholds, your entitlement will reduce. The higher your assessable assets, the lower the amount of Age Pension you are eligible to receive. 

Your family home is exempt from the assets test but, your investments, household contents and motor vehicles may be included. 

The lower income test threshold determines the point where the full Age Pension starts to reduce, while the upper income test threshold determines what the cut-off point is for the part Age Pension.   

Income includes things like payment for employment or self-employment activities, rental income, and a deemed rate of income from financial investments such as managed funds, super (if you are over the Age Pension age) or account-based pensions commenced after 1 January 2015.   

Income doesn’t include things like emergency relief payments. 

If you have income between the lower and upper income test thresholds, your entitlement will reduce as your level of income rises. 

For example, the Age Pension payment for a single person earning more than $212 per fortnight will reduce by 50 cents for each dollar earned over $212. 

For a couple earning more than $372 per fortnight combined, the Age Pension payment for each person will reduce by 25 cents for each dollar earned over $372. 

Tip: The Work Bonus may allow you to receive more income from working, without reducing your Age Pension.  

The maximum Work Bonus balance that you can accrue is $11,800.

The Retirement Essentials free Age Pension Eligibility Calculator can help you work out if you’re eligible for the Age Pension (or the Commonwealth Seniors Health Card), and how much you could receive.   Check your eligibility.

As a CFS member, you can also receive a 10% discount on selected Retirement Essentials services. These include lodging and managing your Age Pension or Commonwealth Seniors Health Card application.

If you would like help with your retirement strategy, book a free consultation with our guidance team.