How much money can you have and still get a pension?

The Age Pension is means-tested. That means two levers—your assets and your income—determine whether you qualify and how much you’re paid. Below you’ll find the latest assets test limits and income test thresholds effective 20 September 2025, with plain-English explanations, worked examples, and links to check your own numbers. We’ve also included common pitfalls and simple steps to improve your chances of qualifying without breaching the rules.

For the official detail, see the assets test and income test pages on Services Australia.

How the Age Pension means test works

Centrelink assesses you under both the assets test and the income test, then pays you based on the test that produces the lower entitlement. If you own your home (your principal residence), it’s generally exempt from the assets test. Almost everything else you own or have an interest in can count—bank accounts, investments, investment properties, cars and contents, business assets and more.

Definitions, examples and special cases are explained under asset types. On the income side, Services Australia may use deeming to estimate earnings on financial assets (so you don’t have to report every interest or dividend change). If you have employment income, read about working while you’re getting Age Pension and the Work Bonus.

Assets test (effective 20 September 2025)

We assess the market value of your assessable assets. If your assets are over the limit for your situation, your pension reduces. For couples, limits are combined, not per person. The Department of Social Services reviews limits and cut-offs each March, July and September.

Assets test limits for a full pension

• Single homeowner: $321,500
• Single non-homeowner: $579,500
• Couple (combined) homeowners: $481,500
• Couple (combined) non-homeowners: $739,500
• Couple separated due to illness (combined): $481,500 (homeowners) / $739,500 (non-homeowners)
• Couple, one partner eligible (combined): $481,500 (homeowners) / $739,500 (non-homeowners)

Assets test cut-off points for a part pension

• Single homeowner: $714,500
• Single non-homeowner: $972,500
• Couple (combined) homeowners: $1,074,000
• Couple (combined) non-homeowners: $1,332,000
• Couple separated due to illness (combined): $1,267,500 (homeowners) / $1,525,500 (non-homeowners)
• Couple, one partner eligible (combined): $1,074,000 (homeowners) / $1,332,000 (non-homeowners)

If you receive Rent Assistance, your cut-off points are higher. You can model this using the Payment Finder.

Transitional rate pensions – asset cut-offs

• Single homeowner: $641,500
• Single non-homeowner: $899,500
• Couple (combined) homeowners: $998,000
• Couple (combined) non-homeowners: $1,256,000
• Couple separated due to illness (combined): $1,121,500 (homeowners) / $1,379,500 (non-homeowners)
• Couple, one partner eligible (combined): $998,000 (homeowners) / $1,256,000 (non-homeowners)

Income test (effective 20 September 2025)

The income test looks at all income sources. For financial assets, deeming may apply. If you work, you report actual employment income; the Work Bonus can help offset some of that income before it affects your pension.

Standard rules (most pensioners)

• Single: first $218/fortnight is a free area; pension reduces by 50c per dollar above $218.
• Couple (combined): first $380/fortnight is a free area; each partner’s pension reduces by 25c per dollar above $380 combined.

Transitional rules

• Single: first $218/fortnight is a free area; pension reduces by 40c per dollar above $218.
• Couple (combined): first $380/fortnight is a free area; each pension reduces by 20c per dollar above $380 combined.

Income cut-off points (pension is $0 if income exceeds these amounts)

• Single: $2,575.40/fortnight
• Couple living together (combined): $3,934.00/fortnight
• Couple living apart due to ill health (combined): $5,094.80/fortnight
• Transitional single: $2,617.25/fortnight
• Transitional couple living together (combined): $4,251.50/fortnight
• Transitional couple apart due to ill health (combined): $5,178.50/fortnight

Read the rules and examples on the income test page and get familiar with employment income reporting.

About deeming (for financial assets)

To simplify the income test, Services Australia assumes your financial investments earn a set rate—this is deeming. The deemed income, not your actual interest or dividends, is used to assess your pension. That means moving money between bank accounts or switching term deposits won’t change the income test unless your balances change significantly.

You can review current rules and thresholds on the deeming explainer.

What counts as an asset (and what doesn’t)

Your principal home is generally exempt. Most other things are assessable: investment properties, cash and term deposits, shares and managed funds, business assets, vehicles, boats and personal contents. Loans you’ve made to others and certain amounts gifted away can also be assessed.

For examples and special cases, see asset types and how much you can gift.

Gifting and deprivation rules

You can give money or assets to family or charity, but gifts over the allowable limits can still be counted for the means test for five years (deprivation rules). As a rule of thumb, the gifting free areas are $10,000 per financial year and $30,000 over five financial years (but not more than $10,000 in a single year within that five-year total). Amounts above those limits may be treated as deprived assets and still count in your assessment for a time.

Read the plain-English page on gifting and the limits under how much you can gift. If circumstances change and a gift is returned, deprivation may cease from the date the asset is returned—technical rules apply.

Work Bonus

If you’re over Age Pension age and you have employment income, the Work Bonus can reduce how much of that income counts in the income test. It effectively offsets a portion of your earnings and unused amounts can build up in a Work Bonus balance to help smooth irregular work patterns.

Learn how it applies and how the balance works on How the Work Bonus works.

Other supports that interact with your pension

• Rent Assistance can increase your pension if you rent privately or in community housing, and it raises your assets test cut-off points. Check eligibility and rates via the Payment Finder
• Home Equity Access Scheme provides a voluntary, income-tested loan against the equity in your home to supplement retirement income.

Read more on the Home Equity Access Scheme.

Practical steps: how to check and improve your position

1) List your assets at realistic market value. Subtract debts secured against them. Keep records up to date.

2) Estimate your income: include employment income, rental income and deemed income on financial assets.

3) Use calculators: run scenarios using Payment Finder and our in-house tools to see how close you are to limits.

4) Time your updates: report changes as they happen—selling an asset, receiving an inheritance, or changes in work.

5) Consider structure: company and trust interests, loans and granny-flat interests have specific rules—get advice before restructuring.

6) Plan gifts carefully: don’t jeopardise eligibility by exceeding gifting free areas without modelling the impact.

7) If working, factor in the Work Bonus and income free areas to plan your roster and avoid unintended reductions.

8) If assets are high but income is low, consider whether the Home Equity Access Scheme or downsizing could support cash flow.

Worked examples (illustrative only)

1) Single homeowner near the full-pension limit

Mara owns her home and has $318,000 in assessable assets (cash, car, contents and a modest share portfolio). She’s below the single-homeowner full pension limit of $321,500. Her bank interest is small and she has no other income, so she keeps the full pension.

2) Couple non-homeowners with significant savings

Ken and Ruth rent and hold $1.24 million combined in bank accounts and term deposits. This is below the non-homeowner part-pension cut-off of $1,332,000, so they qualify for a part pension. Because most of their wealth is financial, the income test may become the binding test due to deeming. Centrelink pays the lower of the amounts calculated under the two tests.

3) Couple separated due to illness

Gina and Paolo live apart for medical reasons and have combined homeowner assets of $1.1 million—under their asset cut-off of $1,267,500. Gina works casually. The Work Bonus shields the first portion of her employment income, reducing the income test impact and preserving a higher part pension.

4) Single renter with variable casual work

Barry rents and has $150,000 in assessable assets. He earns around $340 a fortnight from casual work. Under the standard income rules, the first $218 is free; the next $122 reduces his pension by 50c per dollar ($61). If he has a Work Bonus balance, more of his earnings may be offset in some fortnights.

5) Transitional rate pensioner close to cut-off

Mavis is on a transitional rate and receives small investment income and some casual wages. Her income usually sits just below the transitional single cut-off of $2,617.25 per fortnight. If she exceeds this in a fortnight, her payment is $0 for that period under the transitional rules.

6) Gifting and deprivation

Rory gifts $25,000 to his daughter this financial year after previously gifting $8,000 in each of the last two years. He breaches both the $10,000 per year and $30,000 over five years free areas. The excess is treated as a deprived asset for five years from the date of the gift and may reduce his pension under the assets test.

7) Selling investments to reduce assets

Yvonne sells an investment property to fall under the asset cut-off. The sale proceeds become bank cash (still an assessable asset) and may increase deemed income, meaning the income test could become the binding test. She considers using some proceeds to improve the principal residence (which is exempt) but seeks advice to avoid unintended consequences.

Documentation, reviews and timing

Centrelink reviews pension rates and limits in March, July and September. You must report changes to assets and income promptly to keep payments correct. Keep records—bank statements, portfolio reports, property valuations or rates notices—and confirm receipt of your updates through myGov where possible.

If your entitlement changes to $0 in a particular fortnight (for example, your income is over the cut-off), your payment for that fortnight will be nil. If your income or assets later fall again, your payment may resume without a new claim—depending on how long you’ve been at $0 and other rules.

Common mistakes to avoid

• Assuming the family home’s value pushes you over the assets test—it’s generally exempt.
• Forgetting that sale proceeds of an exempt asset (like your home) become assessable while held as cash or investments.
• Making large gifts without checking the deprivation rules—excess amounts may still count for five years.
• Under-reporting casual employment income or not understanding Work Bonus—leading to overpayments that must be repaid.
• Not updating asset values—vehicles and contents may reasonably decline in value over time.
• Timing changes late in a reporting period—missing the date cut-off for a fortnight can affect payments unnecessarily.

Quick eligibility checklist

□ I’ve listed all assets at reasonable market value and subtracted secured debts.

□ I’ve checked my homeowner vs non-homeowner status for the correct limits.

□ I’ve estimated deemed income on financial assets and reported employment income.

□ I’m under the relevant asset limit for full pension or cut-off for a part pension.

□ I’ve considered the Work Bonus and income free areas if I’m working.

□ Any gifts I’ve made are within the free areas, or I’ve modelled the deprivation impact.

□ I’ve saved evidence and reported changes via myGov or to Centrelink as required.

Want help checking your eligibility?

We help clients inventory assets correctly, understand deeming, and build a simple reporting routine so payments stay accurate. If you want a quick chat about your position, book a discovery call. You can also explore how we work through our 6‑Step Financial Advice Process and run some numbers with our free online calculators.

General information only. This article doesn’t consider your objectives, financial situation or needs. Thresholds, rates and rules change; always check the Services Australia pages linked above and seek personal advice before acting.