In this guide
- How does the Age Pension income test work?
- Age Pension income limits
- Work bonus
- What is included in the Age Pension income test?
- What is not included in the Age Pension income test?
- What if your income changes?
- Means test treatment of lifetime annuities
- Defined benefit super pensions
- How the income and assets tests work together
- Does a mortgage reduce deemed income?
A common question for those nearing, or in, retirement is ‘How much can a pensioner earn before it affects the pension?’. The answer is that it depends on how much income you earn and the total value of your assets, excluding the family home.
This article details the rules of the Age Pension income test, which is one half of the means test used by Centrelink to determine how much Age Pension you could be eligible for.
You must also pass the Age Pension assets test, have reached your eligibility age and satisfy Australian residency rules.
Statistics indicate that the Age Pension income test is passed by fewer Australians than the asset test. According to the Centre of Excellence in Population Ageing Research (CEPAR), approximately two thirds of Australians receiving part pensions have too much income to be eligible for the full pension. The other one third of part-pensioners have too much assessable wealth (assets).
How does the Age Pension income test work?
Centrelink assesses your gross income (that is, your before-tax income) from all sources to determine your eligibility for the Age Pension. These sources include income from overseas, not just Australia. If you have a partner, their income will also be included in your income test assessment.
The current income limits are itemised in the tables below.
Age Pension income limits
To be eligible for a full Age Pension your income must be below the following thresholds.
Income limits for a full Age Pension
| Situation | Latest fortnightly limit | Latest annual limit* | Previous fortnightly limit | Previous annual limit* | Fortnightly increase | Annual increase* |
|---|---|---|---|---|---|---|
| Single | $212 | $5,512 | $204 | $5,304 | $8.00 | $208 |
| Couple (combined) | $372 | $9,672 | $360 | $9,360 | $12.00 | $312 |
| Couple (illness-separated, combined) | $372 | $9,672 | $360 | $9,360 | $12.00 | $312 |
- Latest limits apply 1 July 2024 to 30 June 2025
- Previous limits apply 1 July 2023 to 30 June 2024
Source: Services Australia. Annual amounts are approximate.
If your income is above the thresholds in the above table, you may still be eligible for a part Age Pension. The table below shows the maximum income you can earn to still be eligible to receive a part pension payment.
The amount of Age Pension for which you are eligible reduces by 50 cents for each dollar earned until it cuts off completely when your income exceeds the figures below.
Income limits for a part Age Pension (residents)
| Situation | Latest fortnightly limit | Latest annual limit* | Previous fortnightly limit | Previous annual limit* | Fortnightly increase | Annual increase* |
|---|---|---|---|---|---|---|
| Single | $2,500.80 | $65,021 | $2,444.60 | $63,560 | $56.20 | $1,461 |
| Couple (combined) | $3,822.40 | $99,382 | $3,737.60 | $97,178 | $84.80 | $2,205 |
| Couple (illness-separated, combined) | $4,949.60 | $128,690 | $4,837.20 | $125,767 | $112.40 | $2,922 |
- Latest limits apply 20 September 2024 to 19 March 2025
- Previous limits apply 1 July 2024 to 19 September 2024
Source: Services Australia
*Annual amounts are approximate.
To illustrate how the Age Pension rate decreases based on how much income you earn, below are some examples of the current Age Pension payments for which Australians should be eligible at a range of different income levels, provided they also meet the other eligibility requirements (age, passing the assets test and Australian residency).
Note: The examples include the Pension supplement and Energy supplement, but does not include the work bonus (see below).
Click each example name to view.
Example 1: Single
| Income | Income | Age Pension | Age Pension | Combined | Combined |
|---|---|---|---|---|---|
| per fortnight | per year | per fortnight | per year | per fortnight | per year |
| $212 | $5,512 | $1,144.40 | $29,754 | $1,356.40 | $35,266 |
| $250 | $6,500 | $1,125.40 | $29,260 | $1,375.40 | $35,760 |
| $500 | $13,000 | $1,000.40 | $26,010 | $1,500.40 | $39,010 |
| $750 | $19,500 | $875.40 | $22,760 | $1,625.40 | $42,260 |
| $1,000 | $26,000 | $750.40 | $19,510 | $1,750.40 | $45,510 |
| $1,250 | $32,500 | $625.40 | $16,260 | $1,875.40 | $48,760 |
| $1,500 | $39,000 | $500.40 | $13,010 | $2,000.40 | $52,010 |
| $1,750 | $45,500 | $375.40 | $9,760 | $2,125.40 | $55,260 |
| $2,000 | $52,000 | $250.40 | $6,510 | $2,250.40 | $58,510 |
| $2,250 | $58,500 | $125.40 | $3,260 | $2,375.40 | $61,760 |
Example 2: Couple (combined)
| Income | Income | Age Pension | Age Pension | Combined | Combined |
|---|---|---|---|---|---|
| per fortnight | per year | per fortnight | per year | per fortnight | per year |
| $372 | $9,672 | $1,725.20 | $44,855 | $2,097.20 | $54,527 |
| $500 | $13,000 | $1,661.20 | $43,191 | $2,161.20 | $56,191 |
| $750 | $19,500 | $1,536.20 | $39,941 | $2,286.20 | $59,441 |
| $1,000 | $26,000 | $1,411.20 | $36,691 | $2,411.20 | $62,691 |
| $1,250 | $32,500 | $1,286.20 | $33,441 | $2,536.20 | $65,941 |
| $1,500 | $39,000 | $1,161.20 | $30,191 | $2,661.20 | $69,191 |
| $1,750 | $45,500 | $1,036.20 | $26,941 | $2,786.20 | $72,441 |
| $2,000 | $52,000 | $911.20 | $23,691 | $2,911.20 | $75,691 |
| $2,250 | $58,500 | $786.20 | $20,441 | $3,036.20 | $78,941 |
| $2,500 | $65,000 | $661.20 | $17,191 | $3,161.20 | $82,191 |
| $2,750 | $71,500 | $536.20 | $13,941 | $3,286.20 | $85,441 |
| $3,000 | $78,000 | $411.20 | $10,691 | $3,411.20 | $88,691 |
| $3,250 | $84,500 | $286.20 | $7,441 | $3,536.20 | $91,941 |
| $3,500 | $91,000 | $161.20 | $4,191 | $3,661.20 | $95,191 |
| $3,750 | $97,500 | $36.20 | $941 | $3,786.20 | $98,441 |
Example 3: Couple (illness-separated, combined)
| Income | Income | Age Pension | Age Pension | Combined | Combined |
|---|---|---|---|---|---|
| per fortnight | per year | per fortnight | per year | per fortnight | per year |
| $372 | $9,672 | $2,288.80 | $59,509 | $2,660.80 | $69,181 |
| $500 | $13,000 | $2,224.80 | $57,845 | $2,724.80 | $70,845 |
| $750 | $19,500 | $2,099.80 | $54,595 | $2,849.80 | $74,095 |
| $1,000 | $26,000 | $1,974.80 | $51,345 | $2,974.80 | $77,345 |
| $1,250 | $32,500 | $1,849.80 | $48,095 | $3,099.80 | $80,595 |
| $1,500 | $39,000 | $1,724.80 | $44,845 | $3,224.80 | $83,845 |
| $1,750 | $45,500 | $1,599.80 | $41,595 | $3,349.80 | $87,095 |
| $2,000 | $52,000 | $1,474.80 | $38,345 | $3,474.80 | $90,345 |
| $2,250 | $58,500 | $1,349.80 | $35,095 | $3,599.80 | $93,595 |
| $2,500 | $65,000 | $1,224.80 | $31,845 | $3,724.80 | $96,845 |
| $2,750 | $71,500 | $1,099.80 | $28,595 | $3,849.80 | $100,095 |
| $3,000 | $78,000 | $974.80 | $25,345 | $3,974.80 | $103,345 |
| $3,250 | $84,500 | $849.80 | $22,095 | $4,099.80 | $106,595 |
| $3,500 | $91,000 | $724.80 | $18,845 | $4,224.80 | $109,845 |
| $3,750 | $97,500 | $599.80 | $15,595 | $4,349.80 | $113,095 |
| $4,000 | $104,000 | $474.80 | $12,345 | $4,474.80 | $116,345 |
| $4,250 | $110,500 | $349.80 | $9,095 | $4,599.80 | $119,595 |
| $4,500 | $117,000 | $224.80 | $5,845 | $4,724.80 | $122,845 |
| $4,750 | $123,500 | $99.80 | $2,595 | $4,849.80 | $126,095 |
The Age Pension income limits are adjusted three times a year based on movements in the consumer price index (CPI). The thresholds for the full Age Pension change in July, while thresholds for the part Age Pension change in March and September.
You can access the latest Age Pension rates here.
Try our Age Pension calculator to get an indication of your potential Age Pension entitlements.
Work bonus
Generally, you can earn up to $300 a fortnight if you’re still working and you will not have this amount included in your income test for the Age Pension. This amount is known as a ‘work bonus.’ The work bonus amount can be accumulated up to an amount of $11,800. You don’t need to apply to have this done. Centrelink will apply the work bonus to your income test.
Learn more about how the work bonus works.
Income limits for a part Age Pension (non-residents)
Be aware that if you’re currently residing outside Australia but are still eligible for an Australian Age Pension, different maximum income test thresholds and payment rates apply for the part pension.
The different maximum income test thresholds are outlined in the table below.
| Situation | Latest fortnightly limit | Latest annual limit* | Previous fortnightly limit | Previous annual limit* | Fortnightly increase | Annual increase* |
|---|---|---|---|---|---|---|
| Single | $2,364.00 | $61,464 | $2,309.80 | $60,055 | $54.20 | $1,409 |
| Couple (combined) | $3,624.40 | $94,234 | $3,542.40 | $92,102 | $82.00 | $2,132 |
| Couple (illness-separated, combined) | $4,676.00 | $121,576 | $4,567.60 | $118,758 | $108.40 | $2,818 |
- Latest limits apply 20 September 2024 to 19 March 2025
- Previous limits apply 1 July 2024 to 19 September 2024
Source: Services Australia
*Annual amounts are approximate.
Income limits for a transitional part Age Pension (residents)
Some Age Pensioners in Australia are on transitional pensions. Transitional pension rates are paid to people who would otherwise be getting a lower payment after changes to the income test were introduced in 2009.
The table below shows the asset value cut-off points for receiving a transitional pension.
| Situation | Latest fortnightly limit | Latest annual limit* | Previous fortnightly limit | Previous annual limit* | Fortnightly increase | Annual increase* |
|---|---|---|---|---|---|---|
| Single | $2,564.75 | $66,684 | $2,519.25 | $65,501 | $45.50 | $1,183 |
| Single with one dependent child | $2,589.35 | $67,323 | $2,543.85 | $66,140 | $45.50 | $1,183 |
| Couple (combined) | $4,168.50 | $108,381 | $4,095.00 | $106,470 | $73.50 | $1,911 |
| Couple (illness-separated, combined) | $5,077.50 | $132,015 | $4,986.50 | $129,549 | $91.00 | $2,366 |
- Latest limits apply 20 September 2024 to 19 March 2025
- Previous limits apply 1 July 2024 to 19 September 2024
Source: Services Australia
*Annual amounts are approximate.
Income limits for a transitional part Age Pension (non-residents)
| Situation | Latest fortnightly limit | Latest annual limit* | Previous fortnightly limit | Previous annual limit* | Fortnightly increase | Annual increase* |
|---|---|---|---|---|---|---|
| Single | $2,337.00 | $60,762 | $2,295.25 | $59,677 | $41.75 | $1,086 |
| Single with one dependent child | $2,361.60 | $61,402 | $2,319.85 | $60,316 | $41.75 | $1,086 |
| Couple (combined) | $3,924.00 | $102,024 | $3,854.50 | $100,217 | $69.50 | $1,807 |
| Couple (illness-separated, combined) | $4,622.00 | $120,172 | $4,538.50 | $118,001 | $83.50 | $2,171 |
- Latest limits apply 20 September 2024 to 19 March 2025
- Previous limits apply 1 July 2024 to 19 September 2024
Source: Services Australia
Annual amounts are approximate.
