The Age Pension means test uses both the assets test and the income test. If you are close to a cutoff, starting an account-based pension, helping a parent, or unsure what Centrelink counts, start with the self-check PDF below. Then get Age Pension guidance if you want your numbers modelled before you act.

• Close to a cutoff
• Starting a super pension
• Helping a parent

Last updated: 6 May 2026. This guide explains the Age Pension assets test, Age Pension income test and Age Pension means test using Services Australia thresholds checked on 6 May 2026. The key Services Australia assets, income and deeming pages used below were last updated on 20 March 2026.

The Age Pension is a critical part of retirement income for many Australians, but the eligibility rules catch people off guard. Your entitlement depends on two separate tests: the income test and the assets test. Centrelink pays you based on whichever test produces the lower amount.

The short answer. Centrelink runs both an income test and an assets test, then pays whichever gives the lower pension. For 2026, the part pension cuts out once your assessable assets pass the limits in the figure below, and the cut-off is higher for non-homeowners than for homeowners. If you are close to a cut-off, check the numbers before you move money or start a super pension.

Asset test limits are from the Services Australia Age Pension assets test page, checked 6 May 2026. Services Australia says the Department of Social Services reviews asset limits and cut-off points in March, July and September.

Understanding how these tests work is essential if you are approaching Age Pension age, currently 67, or already receiving a pension. Small changes to how your assets are structured can affect pension payments.

This guide covers the current thresholds, how each test works, and the key planning decisions retirees commonly review.

To qualify for the Age Pension you must:

• Be at least 67 years old
• Be an Australian resident and have lived in Australia for at least 10 years (with certain exceptions)
• Meet both the income test and the assets test

If you meet the age and residency requirements, your payment amount is determined by whichever test (income or assets) results in the lower pension. This is sometimes called the “means test.”

The Age Pension assets test looks at the value of your assessable assets. Your family home is exempt from the assets test regardless of its value, but most other assets can count: superannuation once you reach Age Pension age, bank accounts, shares, managed funds, investment properties, vehicles, personal belongings, and other financial assets.

The full pension assets limits and part pension cut-off points that apply from 20 March 2026 are set out in the figure above. The cut-off is higher for non-homeowners, because the family home is not counted as an assessable asset.

For the standard assets test, Services Australia reduces the pension by $3 per fortnight for every $1,000 of assets above the relevant full-pension limit. Once your assets are over the cut-off point for your situation, the Age Pension cancels.

Check the current Services Australia assets test limits.

The Age Pension income test counts assessable income from employment, investments, rental property, super pensions and other sources. For financial assets, Centrelink usually uses deeming, which assumes your financial assets earn income at set rates regardless of what they actually earn.

Deeming figures are from the Services Australia deeming page, checked 6 May 2026.

Income test free areas from 20 March 2026:

• Single: up to $218 per fortnight before your pension reduces
• Couple living together or apart due to ill health: up to $380 combined per fortnight before each person's pension reduces

For standard-rate pensioners, a single person's pension reduces by 50 cents for each dollar over $218. For couples, each person's pension reduces by 25 cents for each dollar of combined income over $380.

Standard fortnightly income cut-off points: $2,619.80 for a single person and $4,000.80 combined for a couple living together. Different transitional and illness-separated rates can apply.

Check the current Services Australia income test rules.

Centrelink calculates your pension under both tests and pays you the lower of the two amounts. That is why people often refer to the Age Pension assets test and Age Pension income test together as the Age Pension means test.

In practice, many retirees with moderate super balances are affected most by the pension asset test. People with employment income, rental income, or higher deemed financial income may be affected more by the income test.

Where advice earns its keep

This is important because strategies that reduce assessable assets may not help if the income test is already the binding constraint, and vice versa.

There are legitimate strategies that can help you structure your finances to maximise your Age Pension entitlement. These aren’t loopholes. They’re planning decisions that take advantage of how the means tests work.

Where advice earns its keep

Structure your super drawdowns: How much you withdraw from super and when can affect both the assets test and the income test. Getting the timing right around your 67th birthday and Age Pension application is important.

A common source of confusion is how superannuation interacts with the Age Pension. The rules depend on your age and the phase your super is in:

• Before Age Pension age: Super in accumulation phase is generally not counted under the assets test or income test. This changes the day you reach Age Pension age.
• At Age Pension age and beyond: All superannuation, whether it’s in accumulation or pension phase, becomes an assessable asset. Account-based pensions are also subject to deeming under the income test.

Where advice earns its keep

This transition is why the years immediately before and after turning 67 are so critical for planning. Decisions made in this window can affect your pension entitlement for decades.