Age Pension calculator
What the Age Pension pays after both means tests, which of the two is binding, and how deeming treats your financial assets.
Covers 2026-27 · rates as at 2026-07-01
Age Pension per fortnight
Estimate$711.00
Reduced by the assets test, which is the binding one
- A year
- $18,537
- Income test result
- $1,106.41
- Assets test result
- $711.00
| Maximum rate | $1,149.00 |
|---|---|
| Deemed income from financial assets | $297.18 |
| Assessable income per fortnight | $297.18 |
| Under the income test | $1,106.41 |
| Under the assets test | $711.00 |
| Paid — the lower of the two | $711.00 |
- Financial assets are deemed to earn a set rate whatever they actually earn, so moving money between a term deposit and a cash account changes nothing for the income test.
- The assets taper of $3 per $1,000 a fortnight is 7.8% a year — above any safe withdrawal rate, so extra assets near the threshold can leave you worse off.
Both tests are run and the lower result is paid. On $460,000 of assets the assets test usually binds, so spending down raises the pension by about $3 per $1,000.
Do you qualify
How this is calculated
Two tests, and the lower one wins
The income test reduces the pension by 50c per dollar above $212 a fortnight for a single. The assets test reduces it by $3 per $1,000 above $314,000 for a single homeowner. Whichever produces the smaller figure is what you receive.
pension = min(income test result, assets test result)Financial assets are deemed, not measured
Super, shares, term deposits and cash are assumed to earn 0.25% up to $62,600 and 2.25% above, whatever they actually return. A 5% term deposit and a 0% transaction account are treated identically.
deemed = 0.25% × first $62,600 + 2.25% × the restThe assets taper is steeper than any withdrawal rate
$3 per fortnight per $1,000 is $78 a year, or 7.8%. No sustainable withdrawal rate reaches that, so an extra dollar of assessable assets near the threshold genuinely reduces total retirement income.
Worked example: Single homeowner with $400,000 financial and $60,000 other assets
| Status | Single homeowner |
|---|---|
| Financial assets | $400,000 |
| Other assets | $60,000 |
| Assets free area | $314,000 |
|---|---|
| Deeming threshold | $62,600 |
| Income free area | $212 a fortnight |
With $460,000 of assessable assets the assets test is almost always the binding one at this level, which means spending down assets raises the pension roughly 7.8c per dollar spent.
What this assumes
- Both members of a couple are of pension age.
- The family home is exempt from the assets test.
- Maximum rate including pension and energy supplements.
- No income streams assessed under separate rules.
Where this commonly goes wrong
- Gifting is caught for five years — you may give away $10,000 a year to a $30,000 five-year limit, and anything above that is still counted as your asset.
- Rates are indexed on 20 March and 20 September, so a figure quoted in February is out of date by April.
- Being assessed as a couple applies from the day you are considered a member of a couple, and the combined rate is lower than two single pensions.
Questions
How much Age Pension will I get?
Both tests are applied and the lower result is paid. The maximum is about $1,149 a fortnight for a single, reduced by 50c per dollar of income above $212 or $3 per $1,000 of assets above $314,000 for a homeowner.
What is deeming?
Financial assets are assumed to earn 0.25% up to $62,600 and 2.25% above, regardless of actual returns. It means a high-yielding term deposit and an idle cash account are assessed identically.
Which test applies to me?
Whichever produces the lower pension. Asset-rich retirees are usually caught by the assets test and income-rich ones by the income test — and knowing which tells you whether spending assets would help.
Is my home counted?
No, the family home is exempt from the assets test. Non-homeowners get a much higher free area instead — $566,000 rather than $314,000 for a single — to reflect that they must fund housing.
Can I work and still get the pension?
Yes. The Work Bonus exempts the first $300 a fortnight of employment income before the income test applies, and unused Work Bonus accumulates in a bank up to a limit.
Does spending money increase my pension?
Under the assets test, yes — $3 per fortnight per $1,000 spent, which is 7.8% a year. That is above any sustainable withdrawal rate, which is why the taper is so consequential near the threshold.
Related tools
Sources
General estimate based on published ATO rates for the 2026-27. Not tax advice, and it does not consider your objectives, financial situation or needs. Confirm your position with the ATO or a registered tax agent.
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