Income test

Your income can reduce how much Age Pension we pay you. We use the pension income test to assess Age Pension.

What the income test is

We assess your and your partner’s income from all sources. This includes financial assets such as savings, shares and superannuation. To work out how much income your financial assets produce, we use deeming.

If you or your partner work, you’ll need to report any employment income you’ve been paid. Read about employment income reporting.

You don’t need to give us your payslips unless we ask you for them.

Read about working while you’re getting Age Pension.

Age Pension has income and asset free areas and limits. If you’re over the free area, you get a lower pension until you reach the limit or cut off point.

If you’re permanently blind and get Age Pension, we don’t use the income test unless you get Rent Assistance or your partner is getting a payment and is not also blind.

What the standard rules are

These are the income rules for most pensioners. Read about the Work Bonus and how it can help you earn more income from working without reducing your pension.

Single person

Income per fortnightAmount your pension will reduce by
Up to $212 (free area)$0
Over $21250 cents for each dollar over $212

Couple living together or apart due to ill health

Different rates apply for partners getting a payment other than a pension.

Combined income per fortnightAmount each member of the couple’s pension will reduce by
Up to $372 (free area)$0
Over $37225 cents for each dollar over $372

What the transitional rules are

These are the income rules for a transitional rate pensioner.

Single person

Income per fortnight isAmount your pension will reduce by
Up to $212$0
Over $21240 cents for each dollar over $212

Couple living together or apart due to ill health

Different rates apply for partners getting a payment other than a pension.

Combined income per fortnightAmount each member of the couple’s pension will reduce by
Up to $372$0
Over $37220 cents for each dollar over $372

Transitional rate with dependent children

You can earn up to an extra $24.60 per fortnight for each dependent child without reducing your pension. Couples living together and both getting a pension can each earn an extra $12.30 per fortnight for each dependent child.

What the cut off points are

If your income in a fortnight goes over the cut off point, we’ll pay you $0 for that fortnight.

Your cut off point may be higher if you get Rent Assistance or Work Bonus.

Your cut off point may be lower if you don’t live in Australia.

Your situationFortnightly income cut off point
Single$2,444.60
A couple living together$3,737.60 combined
A couple living apart due to ill health$4,837.20 combined
A transitional rate pensioner - single$2,519.25
Transitional rate pensioners - couple living together$4,095.00 combined
Transitional rate pensioners - couple living apart due to ill health$4,986.50 combined
Page last updated: 9 July 2024.
QC 65073