The short answer: after the March 2026 indexation, a single Age Pensioner receives around $30,580 a year and a couple around $46,120 combined. Asset and income thresholds moved up with indexation. The deeming rate freeze (0.25% lower, 2.25% upper) is scheduled to end on 30 June 2026. Support at Home has been live for nine months and changes how home-care payments interact with pension. The Commonwealth Seniors Health Card thresholds are unchanged since July 2022. Work Bonus remains the most underused lever in the pension system.
Three things changed materially in the past year. Indexation pushed rates and thresholds up (March and September 2025, March 2026). Support at Home replaced Home Care Packages on 1 July 2025. The deeming rate freeze is near expiry. Everything else is still indexed, tinkered-with, and broadly the same as 2025.
This is a plain-English update on where the Age Pension sits in April 2026, what’s changed in the past 12 months, and what the May 2026 Budget might move. It deliberately doesn’t re-cover the income and assets tests mechanics; if you want the test details, our earlier post on Age Pension income and assets tests handles that.
Age Pension Rates After March 2026 Indexation
Rates are indexed twice a year, on 20 March and 20 September. The March 2026 indexation round has now been applied. These are the fortnightly and annual figures rounded from official Services Australia schedules.
| Category | Fortnightly Maximum | Annual Maximum |
|---|---|---|
| Single pensioner (incl. supplements) | $1,176.10 | $30,580 |
| Couple, combined (incl. supplements) | $1,774.40 | $46,124 |
| Couple, one eligible (their own rate) | $887.20 | $23,062 |
| Couple separated by illness | $1,176.10 each | $30,580 each |
The single rate includes the basic pension, Pension Supplement ($83.20 per fortnight), and Energy Supplement ($14.10 per fortnight). The couple rate follows the same structure. Pensioners on reduced rates receive proportional supplements.
To put those numbers in retirement-plan context: a single homeowner drawing the full pension plus the ASFA-benchmarked super drawdown (around $31,000 a year from a $500,000 super balance) ends up with about $61,000 a year to live on. That’s within ASFA’s “comfortable” single retirement benchmark. The pension alone covers the modest benchmark.
What Changed in the Past 12 Months
Three structural changes actually landed between April 2025 and April 2026. Most of the others were just indexation.
Support at Home (1 July 2025). The old Home Care Package system was replaced with an eight-level Support at Home program. The new system has clearer funding bands and a distinction between everyday living, independence, and clinical care categories. For pensioners, the main change is that co-contribution rules shift with income rather than being flat. Pensioners at the full-rate level pay nothing for the everyday living component. Part-pensioners pay a small means-tested co-contribution. Self-funded retirees at the higher end contribute more, up to a cap.
Commonwealth Seniors Health Card threshold indexation resumed September 2025. The thresholds had been reset in July 2022 (to $99,025 single, $158,440 combined) with the reform that broadened eligibility by about 40,000 people. September 2025 brought the first meaningful indexation since then.
Deeming thresholds moved with March 2026 indexation (thresholds only; the rates stay frozen). The single threshold increased from $62,600 to around $64,300. The couple combined threshold increased from $103,800 to around $106,400.
The Deeming Rate Freeze: Nearly Over
Deeming rates are the notional interest rates Centrelink applies to financial assets (bank, shares, super in pension phase) for the income test. Actual returns on the assets don’t matter; deeming is a simplification.
The current rates have been frozen since 1 May 2020: 0.25% on the first $64,300 (single) or $106,400 (couple combined), and 2.25% on the balance above those thresholds. The freeze was extended twice in federal budgets. The current expiry is 30 June 2026.
If the rates unfreeze after 30 June 2026, the most likely outcome is upward revision. Reserve Bank cash rate is currently around 3.85%, so a return to market-linked deeming would mean lower rate around 1% to 1.5% and upper rate around 3.5% to 4%. That change would reduce Age Pension entitlements for anyone with significant financial assets outside the family home.
Worked example. A single pensioner with $400,000 in assessable financial assets currently gets deemed at roughly $7,720 a year of income (small portion at 0.25%, bulk at 2.25%). Under market-linked rates, that could rise to $13,500 to $14,000. The Age Pension reduces by 50 cents for every dollar of income above the free area ($220 a fortnight single). A $6,000 deemed-income increase would cut the annual pension by around $3,000.
If the freeze expires, you’ll want to know several months in advance how your financial-assets structure responds. This is the single biggest regulatory unknown for pensioners in 2026.
How Support at Home Interacts With the Pension
Support at Home is delivered by aged-care providers under government funding. It’s not a welfare payment, but the means-test determination that Services Australia runs for it draws on the same asset and income data as the pension. The two systems are connected even though they’re administered separately.
| Pension Status | Support at Home Co-contribution (approx) | Notes |
|---|---|---|
| Full pensioner | $0 for everyday living; means-tested clinical contribution usually $0 | Full subsidy for most services |
| Part pensioner | Small means-tested co-contribution ($5 to $25 per day) | Depends on package level and assessable income |
| Self-funded (CSHC) | Moderate contribution up to the capped daily rate | Lifetime cap protects against open-ended cost |
| Self-funded (no CSHC) | Higher contribution, up to full daily cap | Contribution capped at around $75 per day (indexed) |
The main implication for Age Pensioners is that home-care package value doesn’t disappear if your pension status changes. The clinical and nursing components remain fully government-funded regardless of means, which is the part most people actually need.
Commonwealth Seniors Health Card in 2026
The Commonwealth Seniors Health Card (CSHC) isn’t the Age Pension, but it matters for retirees who miss the pension on asset or income grounds and still want access to concession-rate prescriptions and bulk-billed GP incentives.
The income test thresholds for 2026, following September 2025 indexation, are approximately:
- Single: $99,025 per year (up from $90,000 in 2022, indexed).
- Couple combined: $158,440 per year (up from $144,000 in 2022, indexed).
The income test uses adjusted taxable income plus deemed income from account-based pensions (super in pension phase for people who started drawdown after 1 January 2015). There’s no assets test, so wealthy retirees with the “right” income structure often qualify. Benefits include cheaper PBS prescriptions ($7.70 per item versus $31.60 general), Original Medicare Safety Net thresholds, and in some states additional utilities concessions.
If you think you might qualify, Services Australia processes applications online via myGov. Approvals are usually within a few weeks.
Work Bonus: Still the Best-Kept Pension Secret
The Work Bonus allows Age Pensioners with employment income to earn up to $300 per fortnight ($7,800 per year) without the income test reducing their pension. Unused Work Bonus credits accumulate in a personal bank, up to $11,800 as at 2026.
In practice this means a pensioner who isn’t working can build up Work Bonus credits quietly, then take casual or part-time work for a few months a year without losing pension. A six-month part-time job at $25 per hour, 15 hours per week, earns about $19,500. The first $7,800 is exempt automatically. The banked credits cover another $11,800. Only the final $100 or so triggers an income-test reduction.
Three things to know about the Work Bonus. Employment income includes wages, salary, director fees, and some self-employed active income. Passive income (dividends, interest, rent) is not eligible. You don’t need to apply; it’s automatic for anyone of Age Pension age receiving the pension and reporting employment income to Services Australia. And partners can each use their own Work Bonus independently.
For pensioners considering a return to part-time work for social reasons, the Work Bonus converts what used to be a financial drag into a net positive.
What to Watch in the May 2026 Federal Budget
Federal budgets typically drop in the second week of May. The 2026 budget is the first of the current government’s post-election term. Items most likely to affect the Age Pension:
Deeming rate decision. The June 2026 freeze expiry is the single largest pending decision. A further extension (politically tempting in an election cycle) would preserve current entitlements. A return to market-linked rates would reduce pension payments for wealthier pensioners by hundreds to thousands a year.
Age Pension qualifying age. Currently 67. Treasury modelling has periodically suggested phased increases to 68 or 70 to offset longevity cost. No announcement expected in 2026, but worth watching long-term.
Commonwealth Seniors Health Card threshold. The 2022 reform lifted the thresholds materially. Further expansion or concession-benefit broadening is possible.
Aged care funding. The Aged Care Act 2024 came into full operation on 1 July 2025. The 2026 budget will contain the first full-year funding allocation under the new act. Changes here ripple into means-testing for Support at Home and residential aged care.
Superannuation interaction. The Division 296 tax on super balances above $3 million (deferred from 2025 to 2026) affects a small number of pension-age Australians but is legislatively active. Implementation details will be in the budget.
How Great Advice Helps
Pension strategy is one of the areas where ongoing advice pays for itself repeatedly. Rates, thresholds, deeming, and supplementary entitlements shift twice a year. Assets and income move with markets, super drawdowns, and property values. Most pensioners don’t review their position annually and leave money on the table as a result.
A typical pension-focused engagement for a Logan or Brisbane client looks like this: one initial planning session to model current position and scenarios, one implementation round to restructure any assets (usually to move cash into super pension phase, shift deeming exposure, or optimise Work Bonus usage), and an annual review to catch indexation changes and life events. Total annual cost is usually $1,500 to $3,000 depending on complexity. The pension gain is often several multiples of the fee.
We’re fee-based. No commissions on super or investment advice. First meeting is free and takes about an hour. Corporate Authorised Representative of Akumin Financial Planning Pty Ltd (AFSL 232706).
The Bottom Line
The Age Pension in 2026 is broadly where it was in 2025, with the usual indexation creep and a couple of genuine structural changes. The deeming rate freeze expiry is the regulatory swing event to watch over the next 12 months. Support at Home is already reshaping home-care arithmetic. The Work Bonus remains underused by most eligible pensioners. If your position is materially different from 12 months ago (a house sold, an inheritance received, a partner hitting pension age), this is the right year for a pension-structure review.
Common Questions
What is the Age Pension rate for a couple in 2026?
After March 2026 indexation, a couple receiving the full Age Pension gets approximately $1,774.40 per fortnight combined, or around $46,124 per year. That includes the basic rate, Pension Supplement, and Energy Supplement. Part-rate pensioners receive proportional amounts based on their assets and income test outcomes.
When does the deeming rate freeze expire?
The current freeze on deeming rates (0.25% lower, 2.25% upper) is scheduled to end on 30 June 2026. The freeze has been extended twice previously and another extension is possible in the May 2026 Budget. If the rates return to market-linked levels, retirees with significant financial assets outside the family home could see pension reductions of several thousand dollars per year.
What is Support at Home and how does it affect my pension?
Support at Home replaced Home Care Packages on 1 July 2025. It’s an eight-level system of government-funded in-home aged-care services. For Age Pensioners, the pension itself isn’t reduced by receiving Support at Home, but your pension status (full, part, or self-funded) determines whether you pay any co-contribution toward the service. Full pensioners typically pay nothing. Part pensioners pay a small means-tested amount. Self-funded retirees contribute more, subject to a daily cap.
How much can I earn without losing Age Pension in 2026?
The income test free area is $220 per fortnight single or $380 per fortnight combined for a couple. Employment income also benefits from the Work Bonus: the first $300 per fortnight of wages is exempt, and unused exemption accumulates up to a bank of $11,800. For a non-working pensioner, the banked Work Bonus means a few months of part-time work is usually tax-and-pension-neutral. Above those levels, the pension reduces by 50 cents per dollar of assessable income.
Do I qualify for the Commonwealth Seniors Health Card?
If you’re Age Pension age, not receiving the pension or service pension, and your adjusted taxable income (plus deemed income from account-based pensions) is below the threshold, you probably do. The thresholds in 2026 are approximately $99,025 single or $158,440 combined. There’s no assets test, only an income test. The card provides cheaper PBS prescriptions, Medicare Safety Net benefits, and some state-based concessions. Apply online via myGov.
General Advice Warning: This article contains general information only and does not take into account your individual objectives, financial situation, or needs. Rates, thresholds, and rules cited are current as at April 2026 and will change at the next indexation round. Before making any financial decisions, you should consider whether the information is appropriate for your circumstances and seek personal financial advice from a licensed adviser. Great Advice Financial Advisers is a Corporate Authorised Representative of Akumin Financial Planning Pty Ltd (AFSL 232706).
