Age Pension

Australian Age Pension Eligibility Requirements

To qualify for the Age Pension, there are age and residence requirements that you must satisfy.

20 March 2016: Getting older usually brings with it plenty of life changes. For many Australians, one of the major lifestyle changes which comes with becoming a senior is that you may need to apply for the age pension.

The Age Pension is a scheme which pays out a steady income to eligible Australians, or in the case of those with a larger amount of money, a supplement to help them cope with the costs of living. All the monies that are paid out under this scheme come from different types of tax collections and are the sole responsibility of the Australian government. As with most government payments, it has eligibility requirements and a process which must be followed in order to start receiving payments.

How much pension will you receive?

Please note that finder.com.au is not affiliated with the Department of Human Services or Centrelink. If you would like an indication of pension rates, need assistance with your Age Pension claim, or want to know your eligibility to access government benefits, please consult a financial planner.

If you are in need of finance, please check our guide to loans for pensioners and seniors

Eligibility requirements for Age Pension

Below are the eligibility requirements that anyone seeking the Age Pension needs to satisfy.

Age requirements for the Age Pension

To be eligible for the age pension, you must be 65 years or older, regardless of whether you're male or female. From 1 July 2017, the qualifying age will increase to 65 years and six months. The qualify age will increase by six months every two years, to 67 years by 1 July 2023.

If you were born between You qualify for age pension at age 
1 July 1952 to 31 December 195365 years and six months
1 January 1954 to 30 June 195566 years
1 July 1955 to 31 December 195666 years and six months
From 1 January 195767 years

*Table taken from the Department of Human Services

Residence requirements

In addition to the age requirements, you also have to meet residence requirements in order to be eligible for payments for the age pension, which currently are;

  • On the day you submit your claim. You must be an Australian resident and physically present in Australia.
  • 10 year residence requirements. This requirement has to be met by any person who wants to receive an age pension. The 10 year qualifying residence requirement states that you have to be living in Australia continuously for a period of 10 years. If you have lived in Australia on and off, then the total of all such periods of residence must be equal to or more than 10 years. Within these smaller periods, there should be at least one period where you have lived in Australia continuously for five years.

There are exceptions to this rule if you were a refugee or receiving a widow allowance.

Citizenship

If you are an Australian citizen and have been residing in Australia then you can be eligible for the age pension. New Zealand citizens may also be eligible for age pension in Australia as long as they were in Australia on the date 26th February 2001, or were living in the country for at least one year in the two years before this qualifying date. People who have been living in Australia under a permanent residence visa may also be eligible for age pension.

Income test requirements

There's also an income test the Government will carry out to assess whether or not you're eligible for the Age Pension. The income test will apply to the following payments and family situations:

  • Age Pension.
  • Wife Pension.
  • Widow B Pension.
  • Bereavement Allowance.
  • Carer Payment.
  • Disability Support Pension.

You will be exempt from the income test if you are permanently blind and receive Age Pension or Disability Support Pension and you also do not receive rent assistance.

There are different income cut-off points that apply depending on whether you are single, married, disabled, if you have any dependents, etc.

When your age pension is zero

If you earn enough income your payment is reduced to $0. Take a look at the table below to see what the cut-off point is for your family situation. If you earn below the amount set for your situation you may be eligible for the pension.

Please be aware your payment eligibility will depend on your specific circumstances and this table should just be used as a guide.

Your family situationMaximum you can earn per fortnight until it reaches $0
Single$1,909.80
Couple (combined)$2,922.80
Illness separated (couple combined)$3,783.60
Transitional rate pensioners - Single$2,005.00
Transitional rate pensioners - Couple (combined)$3,261.00
Transitional rate pensioners - Illness separated (couple combined)$3,974.00

Figures as of 22nd Jan 2016

If your income is below these limits, then the amount of pension you are eligible to receive will also depend on your income. Check the table below to see up to date information on what you are eligible for.

When you can receive the full or part age pension

Single

Fortnightly incomeup to $162over $162
Reduction in paymentnone - full payments50 cents for each dollar over $162

Couple combined, couple separated due to illness

Fortnightly incomeup to $288over $288
Reduction in paymentsnone - full payment50 cents for each dollar over $288

Asset requirements

There are limits to the amount of assets you can own when receiving the Age Pension. Like the income tests mentioned above, the limit of assets you can own depends on your status, including if you're single, a couple, a couple separated by illness, or a couple where only one partner is eligible for the pension. In fact, for every $1,000 your asset is worth over the limit, your pension will be reduced by $1.50 per fortnight. Assets include cash, gifts, real estate, businesses, farms, vehicles, life insurance policies and more.

Limits are updated each year in January, March and September, so be sure to visit the Department of Human Services for current information. The following tables outline the asset test limits for allowances, full pensions and past pensions. This table should only be used as a guide and for up to date asset test limits you should visit the Human Services website.

What are some assets are excluded from the test?
  • Your principal home - generally up to two hectares.
  • All Australian superannuation not drawn down (however, only up until pension age).
  • Property or monies left to you in an estate which you're not able to receive - generally for a period of up to 12 months.

For more information, please see the Human Services website.

To receive the full pension

For allowances and full pensions the asset tests are the following:

Family situationLimit for homeownersLimit for non-homeowners
Single$205,500$354,500
Couple (combined)$291,500$440,500
Illness separated (couple combined)$291,500$440,500
One partner eligible (combined assets)$291,500$440,500

*Figures as of 22nd Jan 2016

To receive part pension

For part pensions your assets must be less than the following:

Family situationFor homeownersFor non-homeowners
Single$783,500$932,500
Couple (combined)$1,163,000$1,312,000
Illness separated (couple combined)$1,447,500$1,596,500
One partner eligible$1,163,000$1,312,000

*Figures as of 22nd Jan 2015

If you are a transitional homeowner your assets will need to be less than the following:

Family situationFor homeownersFor non-homeowners
Single$693,250$842,250
Couple (combined)$1,078,500$1,227,500
Illness separated (couple combined)$1,267,000$1,416,000
One partner eligible (combined assets)$1,078,500$1,227,500

*Figures as of 22nd Jan 2016

How do I apply for the Age Pension?

If you’re eligible for the Age Pension, you can apply; however, the rate at which you will be paid the pension will be determined by the assets that you own as well as the income that you are earning. Hence, the results of your income and assets test are vital to the rate of Age Pension you will receive.

  • Income test for age pension in Australia. If you are a single person and your income from all sources is equal to or less than $156 every fortnight, then you will be eligible to receive the full age pension from the government. However, if your income exceeds this limit, you will not get the full rate of age pension but can receive part pension. The minimum income requirements for a couple are lower than for single people. Hence, if you are living as a couple, you should be earning a combined income of less than $276 every fortnight in order to receive full rate of age pension.
  • Assets test for age pension in Australia. Apart from the income test, the asset test will also determine the rate at which your age pension will be paid. If you are a single person and you own a home in Australia, then your total asset value should be lower than $196,750 in order to qualify for the full rate of payment of age pension. If you do not own a home, your asset value should be lower than $339,250. This amount differs for a couple and also depends on whether you own a home or not.

A financial planner can apply for the Age Pension on your behalf

Rates last updated May 26th, 2016
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Commonwealth Financial Planning
Commonwealth Financial Planning
Free initial consultation offer with a financial planner Commonwealth Financial Planners could help you:
  • Grow your super
  • Insure your family and assets
  • Plan your investments
  • Prepare for retirement
Enquire More info

Can I get the Age Pension while living overseas?

Australia is an expensive country, so it's easy to see why many Australians reaching pension age or already receiving a pension may consider countries with cheaper living costs such as Thailand or Bali.

Once you receive the Age Pension in Australia, there is a two year waiting period before you can live overseas, though you can take holidays for up to six weeks at a time. If you were already in Australia and started receiving pension during this time, it is counted as part of the two years. The amount you'll receive depends on how long you'll stay overseas and how long you lived in Australia since being 16 years old.

Living overseas for greater than 26 weeks will see your pension reduced to an amount in proportion to the number of years you were an Australian resident once over the age of 16. If you've lived in Australia for greater than 25 years you'll receive the full amount.

If you've lived in Australia for less than 25 years you'll receive an amount in proportion to the years as a resident.

Remember too that countries like Austria, New Zealand, Canada, Chile, Greece, Italy and the USA have social security agreements which will in some cases continue your payments, so be sure to check on the Department of Human Services for more information regarding this.

Did you know?

Remember, those who are blind and have reached the minimum age for age pension, may not be required to fulfil any asset or income requirements in order to get the Age Pension.

Age Pension benefits at a glance

Recipients of the Age Pension receive different amounts depending on whether or not they’re single, a couple or a couple separated due to illness.

The payment rates are as follows:

StatusMaximum basic rate per fortnight
Single$794.80
Couple$599.10 each or $1,198.20 combined
Couple separated by illness$794.80

Transaction accounts and the Age Pension

One of the ways to receive your Age Pension is directly to your bank account. This will involve the Department of Human Services paying your pension into what’s usually your transaction account. From here you can access your pension to pay for groceries, medical expenses and any other expenses you may have.

If you don’t yet have a transaction account and would like one to receive your Age Pension, or if you have one already and want to ensure it’ll provide you with the features you need when receiving the Age Pension, consider the following points:

What interest rate does it earn?

Most transaction accounts will earn little interest, but some have higher interest earning capabilities. Decide whether or not you want your transaction account to earn interest or you might also want to consider opening a savings account.

What are the monthly fees you’ll pay?

Some transaction accounts will charge a monthly fee which they’ll waive if enough money is deposited into the account each month. For most accounts, this threshold is $2,000, but be sure to check with any accounts you’re interested in. There are also accounts with no monthly fees whatsoever, regardless of the amount which is deposited into it.

How can I access my money?

Most transaction accounts can allow access through the internet and over the telephone, but some transaction accounts are offered by online providers, meaning they might not have large branch networks. If you like to do your banking in person, this might be an important consideration. If you regularly withdraw money from the ATM, you might want to ensure that the institution you have an account with has a number of ATMs near your home, so you can avoid fees.

You can compare a selection of transaction accounts below.

Rates last updated May 26th, 2016
$
Monthly Account Fee Debit Card Access ATM Withdrawal Fee Fee Free Deposit p.m. Details
NAB Classic Banking
Tap and Pay with your Android Phone using NAB Pay.
No minimum deposit required.
Visa $0 $0 No monthly account fees, ever. Free use at over 3,400 NAB and RediATMs Australia wide and $0 overdrawn fees. Open More
Bankwest Qantas Transaction Account
Earn Qantas Points on eligible purchases and on your account balance.
Conditions apply.
Mastercard $0 $2,000 No monthly fees when you deposit at least $2,000 into your account each month. Free access to Bankwest and CommBank ATMs in Australia. No overseas ATM withdrawal fees (charged by Bankwest) though third party fees may apply. Open More
ING DIRECT Orange Everyday Account
Get up to 2% cash back on Visa payWave purchases.
Get a competitive ongoing variable rate when linked with a Savings Maximiser.
Visa $0 $0 No monthly fees, and you can use any ATM in Australia for free when you deposit $1,000 each month e.g your salary. Open More
Citibank Plus Everyday Account
Enjoy 5% cash back on Visa payWave purchases (conditions apply).
Free international money transfers and free overseas Citibank ATM withdrawals.
Visa $0 $0 No ATM fees using Citibank, Westpac, BankSA and St.George branded ATMs in Australia. Use overseas Citibank ATMs for free. Open More
HSBC Day to Day Transaction Account
Your Visa debit card unlocks special privileges worldwide with the HSBC home&Away Privilege Program.
Visa $0 $0 $0 monthly fees. No ATM fees at over 3,000 HSBC, Westpac, St.George, Bank of Melbourne and BankSA ATMs. Open More
ANZ Access Advantage
Apple Pay now available.
Unlimited transactions at ANZ ATMs, EFTPOS, Internet, Mobile and Phone Banking.
Visa $0 $2,000 No monthly account fee when you deposit at least $2,000 per month. Other fee waivers available based on your personal situation. Open More
Bankwest Easy Transaction Account
Pay no ATM fees at over 10,000 ATMs in Australia (conditions apply).
Mastercard $0 $2,000 Minimum deposit of $2,000 per month needed to waive the monthly account fee otherwise $6 monthly fee applies. No ATM fee applicable at Bankwest, CBA, NAB, ANZ, Westpac, St.George, BoM and BankSA ATMs in Australia. Open More
Westpac Choice
$0 ATM withdrawal fee at 50,000+ ATMs globally.
Via Westpac's Global ATM Alliance. Get Cash without your debit card (conditions apply).
Mastercard $0 $2,000 No ATM fees when using St.George, Westpac, BankSA or Bank of Melbourne ATMs in Australia. Deposit at least $2,000 per month and enjoy no monthly service fee. Open More
BankSA Complete Freedom Account
Open one in less than 5 minutes with Cardless Cash available.
Visa $0 $2,000 No monthly account keeping fees when you deposit at least $2,000 in the account each month. Free access to BankSA, St.George, Westpac and Bank of Melbourne ATMs. Open More
St.George Complete Freedom Account
$0 ATM withdrawal fee at 50,000+ ATMs globally.
Via St.George's Global ATM Alliance. Cardless Cash available with an SMS and email alert system.
Visa $0 $2,000 No account keeping fees, if you deposit $2,000 per month plus no minimum balance required. No ATM fees when using St.George, Westpac and BankSA ATMs. Open More
BankSA Express Freedom Account
Get Cardless Cash, free SMS and email alerts.
Visa $0 $1,000 Avoid ATM fees when using BankSA, St.George, Bank of Melbourne and Westpac ATMs. Avoid the monthly fee if you deposit $1000 into this account each month. Open More
Bank of Melbourne Complete Freedom
Get Cardless cash and shop securely with your Visa debit card. Customise SMS and email alerts.
Visa $0 $2,000 No ATM fees when you use Bank of Melbourne, BankSA, St.George or Westpac ATMs. No monthly fees when you deposit at least $2000 into this account each month. Open More
Bank of Melbourne Express Freedom
Get Cardless Cash and PAYG branch and cheque services.
Visa $0 $1,000 No ATM fees when you use Bank of Melbourne, St.George, Westpac and BankSA ATMs. No monthly fees if you deposit $1000 into your account each month. Open More
BankSA Sense Everyday Account
Save and budget – get two accounts working together and save faster.
Visa $0 $2,000 Use over 3000 BankSA, St.George, Bank Of Melbourne and Westpac ATMs in Australia for free. Open More

Pensioner loans

Regular mainstream loans aren’t necessarily available to pensioners. This is because lenders are concerned that a pensioner’s advanced age and increased likelihood of sickness and inability to work may mean they are unable to repay their debts.

There are still ways for pensioners to obtain loans for different purposes. These can include small loans of under $1200 through the No Interest Loans Scheme (NILS), low documentation loans and other options and are explained in more depth in our pensioner loans guide.

The Age pension is one resource older Australians can make use of when they retire. Finding out if you’re eligible for the pension is the first step to financially securing the beginning of your later years, so ensure you find out if you’re able to make use of the pension.

Do you have a question about eligibility for the aged pension?

If you have a specific question about your eligibility for the Aged Pension you will need to speak with the Australian Government Department of Human Services.

Here are some useful links:

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