Age Pension Eligibility in 2025: Income Test, Assets Test, and Deeming Rates Explained

Who Is Eligible for the Age Pension?

To receive the Age Pension from Services Australia, you must meet three basic requirements:

• **Age**: You must be 67 years or older (for anyone born on or after 1 January 1957)
• **Residency**: You must be an Australian resident and have lived in Australia for at least 10 years, with at least 5 of those years in a row
• **Income and assets**: Your income and assets must be below the thresholds set by the government

The Income Test

The income test looks at how much money you receive from all sources — including wages, rental income, interest, dividends, and deemed income from financial assets.

Current thresholds (as at March 2025)

| Situation | Full pension cut-off | Part pension cut-off |

|---|---|---|

| Single | $204/fortnight | $2,444.60/fortnight |

| Couple (combined) | $360/fortnight | $3,737.60/fortnight |

If your income is above the full pension threshold, your pension reduces by 50 cents for every dollar over the limit.

The Assets Test

The assets test looks at the value of what you own — including savings, investments, property (other than your home), vehicles, and superannuation.

Current thresholds (as at March 2025)

| Situation | Full pension threshold | Cut-off threshold |

|---|---|---|

| Single homeowner | $314,000 | $695,500 |

| Single non-homeowner | $566,000 | $947,500 |

| Couple homeowner | $470,000 | $1,045,500 |

| Couple non-homeowner | $722,000 | $1,297,500 |

Your pension reduces by $3 for every $1,000 of assets over the full pension threshold.

Deeming Rates

Deeming is how Centrelink calculates the income from your financial investments — regardless of what they actually earn.

Current deeming rates (as at March 2025)

• **Lower deeming rate**: 0.25% on the first $62,600 (single) or $103,800 (couple)
• **Upper deeming rate**: 2.25% on amounts above those thresholds

Example: If you have $100,000 in a savings account, Centrelink deems you to earn $62,600 × 0.25% + $37,400 × 2.25% = $156.50 + $841.50 = $998/year in income from that asset.

The Homeowner Exemption

Your primary home — the one you live in — is **not counted** in the assets test. This is one of the most significant exemptions in the pension system.

However, if you sell your home and move into aged care, the proceeds from the sale are counted as assets for a period of time.

What If You Are Just Over the Threshold?

If your assets or income are just above the threshold, you may still qualify for a **part pension** — even a small amount. A part pension also gives you access to the Pensioner Concession Card, which provides significant discounts on medicines, utilities, and transport.

Always check your eligibility, even if you think you earn or own too much.

Rates Are Updated Twice a Year

Pension rates and thresholds are adjusted every **March and September**. Always verify the current figures at servicesaustralia.gov.au before making financial decisions.