Age Pension and government benefits

When you retire, you may be eligible for government benefits such as the Age Pension or a concession card.

The kind of pension and benefits you’re entitled to generally depends on your age, assets and income.

The Age Pension

The Age Pension is a fortnightly payment, from the government, to help you with your living costs in retirement.

Generally, to be eligible for the Age Pension, you must meet the following:

• Age: be age 67 or over
• Residency: be an Australian resident and have lived in Australia for at least 10 years. At least 5 of these years without a break in residence
• Finances: There’s a limit on the amount of income you can earn and the value of assets that you own (the income and assets tests). We explain the income and assets tests below.

Age Pension income test

This test measures your income (how much money you earn).

If your income is above a certain limit, your pension payment will be reduced, or you may not be eligible at all. The limit will depend on whether you’re single or whether you have a partner.

Your income includes money from:

• employment
• income streams
• annuities
• investments
• earnings outside Australia
• salary packaging

See income test for Age Pension on the Services Australia website. It explains how your income is calculated and what the thresholds are.

Age Pension assets test

This test measures the value of the assets your own. Your assets can include things like: 

• investment properties
• caravans, cars and boats
• financial investments
• business assets

Your main family home, if you live in it, isn't counted as an asset. However, if you decide to sell, it could affect your pension.

If you have any assets overseas, their value will be converted into the equivalent Australian dollar amount.

See the assets test for Age Pension page on the Services Australia website. It explains the types of assets included in the test and the value of assets that you can have and still be eligible for an Age Pension.

Lorenzo and Sophia apply for the Age Pension

Lorenzo and Sophia have both reached retirement age. They provide their tax returns and bank and financial statements to Centrelink for assessment. Their combined assets are worth $200,000 and their joint income is $45,000 a year. Their assets are modest, so they don't affect their pension. However, as their joint income exceeds the age pension income limit, they will only receive a part pension.

How much the Age Pension pays

How much you get depends on your income and assets tests, and whether you're single or in a couple.

The current maximum Age Pension for:

• singles is $1,079.70 a fortnight or $28,072.20 a year

• couples is $1,627.80 a fortnight or $42,322.80 a year (combined)

These amounts do not include any supplements.

The Department of Social Services adjusts these rates every 20 March and 20 September. 

If you get the Age Pension and your circumstances change, you need to tell Centrelink. This can include selling the family home or other changes to your assets and income. 

Other Age Pension benefits

If you get the Age Pension, you may be eligible for other related benefits:

• Centrepay — A free direct bill paying service available as a regular deduction from your Centrelink payments.
• Work Bonus — A scheme that helps you earn more without reducing your pension.
• Pension supplement - A regular extra payment to help with utility, phone, internet and medicine costs
• Rent assistance – A regular extra amount to help you cover the cost of your accommodation costs.
• Utilities allowance - A quarterly payment to help with household bills .
• Pensioner Concession Card — A concession card to get cheaper health care, medicines and some discounts. We cover concession cards in more detail below.

Other types of pensions

For information about veterans pensions, see pensions and payments on the Department of Veterans' Affairs (DVA) website.

For other types of payments, including carers allowance, use Centrelink's Payment finder.

Concession cards

The following cards provide seniors, retirees and pensioners with discounts on things like health care, transport and utilities.

Pensioner Concession Card

This gives you access to cheaper utility and medical bills, and discounts on public transport in some states. You can get the Pensioner Concession Card if you get the Age Pension or other payments from Centrelink.

See Pensioner Concession Card on the Services Australia website.

Seniors cards

These offers a discount on public transport and some goods and services. Generally, you must be aged at least 60 years (at least 65 in some states), and work less than 20 - 35 hours per week.

• Australian Capital Territory
• New South Wales
• Northern Territory
• Queensland
• South Australia
• Tasmania
• Victoria
• Western Australia

Commonwealth Seniors Health Card

This gets you cheaper prescriptions and medical appointments. You must:

• be of Age Pension age,
• meet an income test, and
• not receive Centrelink payments (including the Age Pension)

See Commonwealth Seniors Health Card on the Services Australia website.

Other assistance for older Australians

Government loans

You may also be eligible for Services Australia loans:

• Home Equity Access Scheme — you can use your real estate as security for a loan that’s paid as a lump sum amount, or as a fortnightly amount. This can help top up your retirement income.
• Advance payment — get part of your pension payment in advance to help cover immediate expenses.

Tax offsets

You may be eligible for additional tax offsets, depending on your age, income, and eligibility for government pensions.

See seniors and pensioners tax offset on the Australian Taxation Office (ATO) website.

Low cost banking

If you have a Pensioner Concession Card or Commonwealth Seniors Health Card, you may be eligible for a low cost, basic bank account. Check with your bank.