Australian age pension

Regular changes

A number of changes affecting the age pension occur either annually or more frequently. These changes include:

• The government age pension usually increases in March and again in September
• Thresholds for income and assets test are indexed in March, July and September
• Super income stream minimum drawdowns are reviewed every July
• Deeming rates and thresholds are reviewed every July

Depending on economic circumstances, adjustments may also be made at other times.

Age pension rate changes

Each year, the Commonwealth Government reviews the age pension rates for those who have reached retirement age.

The current maximum fortnightly payments can be calculated below:

Increase to working limits for pensioners

Age Pensioners will be able to earn an additional $4,000 per financial year without losing any of their pension. The Government announced this as a temporary measure following the national jobs summit in 2022 to encourage older Australians to work a bit more if they want to, to assist in solving Australia’s labour shortage.

The temporary income bank top up, increasing the amount pensioners can earn from $7800 to $11,800 was made permanent on 1 January 2024.

Changing the work test for older Australians

The work test was changed on 1 July 2022. Under the change if you are under 75 years of age during the financial year you can make non-concessional or salary sacrifice contributions, provided your super balance is less than $1.9 million in July of that financial year. The work test continues to apply if you wish to claim personal super contribution deductions.

Deeming rates changes

As part of its response to the economic impacts of the COVID-19 pandemic in 2022, the Federal Government announced a reduction to the upper and lower deeming rates used by Centrelink for estimating pensioner incomes. These rates will remain until at least 30 June 2025.

Deeming rate asset thresholds are the amount above which the upper rate is applied. The current deeming asset threshold rates are outlined below.

The higher rate only applies to the amount of assets above the threshold.

If you’d like more information about how these changes might affect you, talk to your fund.