Age Pension UPDATE: New Rates & Rules from 1 July 2026

If you receive the Australian Age Pension or are about to apply, 1 July 2026 brings some crucial updates. While the base payment rates remain unchanged until September, the thresholds for the income and assets tests are increasing.

This is fantastic news. If you are on a part-pension, you might see a bump in your fortnightly payments. If you previously missed out because your assets or income were slightly too high, you might now qualify for a part-pension—and unlock the highly valuable Pensioner Concession Card.

Here is a complete breakdown of the new rules, rates, and thresholds so you can ensure you are getting exactly what you are entitled to.

1. The Basics: Age Pension Eligibility

To qualify for the Age Pension, you must satisfy three core requirements:

• Age: You must be at least 67 years old.
• Residency: You generally need to have been an Australian resident for at least 10 years in total, with at least 5 of those years being continuous.
• Means Testing: Your pension amount is determined by Centrelink applying both an Income Test and an Assets Test.

Centrelink runs both tests. The test that results in the lower pension amount is the one that dictates your final payment.

2. Current Full Age Pension Rates

Because Age Pension rates are only indexed twice a year (on 20 March and 20 September), the actual full pension amounts are not changing on 1 July 2026.

These are the maximum rates you can receive (including the basic rate, pension supplement, and energy supplement) until 19 September 2026:

Status	Fortnightly Payment	Annual Income Equivalent
Single	$1,200.90	$31,223.40
Couple (per person)	$905.20	$23,535.20

3. The Assets Test Updates (From 1 July 2026)

This is where the major July updates happen. The lower and upper limits for the assets test have increased.

Remember, if you are a homeowner, your principal residence is not included in your assessable assets.

Status	Homeowner Lower Limit	Non-Homeowner Lower Limit
Single	$333,000	$600,000
Couple (Combined)	$499,000	$766,000

If your assessable assets sit below these lower limits, you receive the full Age Pension. If your assets exceed them, your pension reduces:

• Singles: Pension reduces by $3.00 per fortnight for every $1,000 over the limit.
• Couples: Pension reduces by $1.50 per person per fortnight for every $1,000 over the limit.

4. The Income Test & Deeming Changes

The income test thresholds have also been given a boost. On 1 July 2026, the lower limits increased by $8 per fortnight for singles and $16 per fortnight for couples.

• Singles: You can earn up to $226.00 per fortnight before your pension is reduced (by 50 cents for every dollar over the limit). The absolute cut-off is $2,627.80.
• Couples (Combined): You can earn up to $396.00 per fortnight before your pension is reduced (by 25 cents per person for every dollar over the limit). The absolute cut-off is $4,016.80.

The Deeming Rates

Centrelink "deems" your financial assets (like bank accounts and shares) to earn a set percentage, regardless of their actual return.

While the lower (1.25%) and upper (3.25%) deeming rates remain unchanged, the threshold dividing these brackets has increased by $2,600 for singles and $4,400 for couples. This means more of your money is assessed at the lower 1.25% rate, reducing your deemed income and potentially increasing your pension payment.

5. The Work Bonus

If you are still working, the Work Bonus is your best friend. It allows you to earn up to $300 per fortnight from gainful employment or self-employment without it counting toward your income test.

• Accumulation: If you don't use the full $300 in a fortnight, it rolls over into a "buffer" balance, capped at a maximum of $11,800.
• The One-Off Boost: Depending on when you claim, you may receive an immediate $4,000 boost to this balance.
• Automatic Application: You do not need to apply for the Work Bonus; Centrelink applies it automatically to eligible employment income. (Note: passive income from investments or rental properties does not qualify).

Disclaimer: This article is for general informational and educational purposes only. This content does not constitute personal financial, tax, or legal advice. Government rates, rules, and thresholds are subject to change. Always consider your own financial situation and consult a licensed professional or Services Australia before making decisions regarding your pension.