Age Pension Calculator AU 2026 (Income & Assets Test)

What this calculator works out

This calculator estimates your fortnightly and annual Age Pension under the rates effective from 20 March 2026, including:

• The maximum fortnightly rate for singles and couples (base rate plus pension supplement plus energy supplement).
• The income test with deeming on financial assets and the Work Bonus on employment income.
• The assets test with the four threshold variants (single/couple × homeowner/non-homeowner).
• The lower of the two tests, which is the binding result for the typical pensioner.

Numbers come from Services Australia — How much Age Pension you can get, the income test and assets test pages, and the deeming and Work Bonus pages. Rates indexate twice a year on 20 March and 20 September. This is a general estimate, not a Centrelink determination.

The formula and where the rates come from

Maximum fortnightly rates from 20 March 2026:

• Single — $1,249.30 ($1,149.00 base + $83.20 pension supplement + $17.10 energy supplement)
• Couple, each — $941.10 ($865.50 base + $62.70 pension supplement + $12.90 energy supplement)
• Couple, combined — $1,882.20

Income test:

deemed income (annual) = first $62,600 (single) / $103,800 (couple) × 0.25%
                          + amount above × 2.25%
deemed income (fn)     = deemed annual ÷ 26
employment after WB    = max(0, employment income − $300)
assessable income (fn) = deemed (fn) + other income (fn) + employment after WB
income free area       = $218 (single) / $380 (couple combined)
income reduction (fn)  = max(0, assessable − free area) × 50%
income test payment    = max(0, max fortnightly − income reduction)

Assets test:

assessable assets      = financial assets + other assets (excludes principal home)
assets threshold       = $321,500 (single homeowner)
                       / $579,500 (single non-homeowner)
                       / $481,500 (couple homeowner combined)
                       / $739,500 (couple non-homeowner combined)
assets reduction (fn)  = max(0, assets − threshold) ÷ 1000 × $3
assets test payment    = max(0, max fortnightly − assets reduction)

Final payment:

fortnightly payment    = min(income test payment, assets test payment)
annual payment         = fortnightly × 26

How to read the inputs

• Relationship status — single or couple. Couple inputs are combined (both partners' assets and incomes added together).
• Homeowner — tick if you own and live in the home. The principal home is not counted as an asset, but the higher non-homeowner threshold applies if you do not own.
• Financial assets — bank deposits, shares, managed funds, account-based pensions, super if over Age Pension age. Subject to deeming.
• Other assessable assets — cars (market value), contents (auction value, often $5,000-$10,000), investment property, the surrender value of life insurance.
• Other fortnightly income — rent (net of expenses), foreign pensions, periodic compensation, distributions from private trusts.
• Employment income per fortnight — gross wages or business income from gainful work. Work Bonus excludes the first $300.

Worked examples

1. Single homeowner with no other income or assets. Both tests pass at the max → $1,249.30/fn ($32,481.80/yr).

2. Single homeowner with $400,000 financial assets. Deemed income = $62,600 × 0.25% + $337,400 × 2.25% = $7,748/yr ≈ $297.96/fn. Income test: $297.96 over $218 by $79.96 → reduction $39.98 → payment $1,209.32. Assets test: $400,000 over $321,500 by $78,500 → reduction $235.50 → payment $1,013.80. Lower = $1,013.80/fn (assets test binds).

3. Single homeowner working 16 hours/week at $25/hr. Employment income $800/fn. Work Bonus excludes $300 → $500 counted. Income test: $500 over $218 by $282 → reduction $141 → payment $1,108.30. Assets test passes at max. → $1,108.30/fn.

4. Couple homeowner with $250,000 financial assets and $700/fn rental income. Deemed: $103,800 × 0.25% + $146,200 × 2.25% = $3,549/yr ≈ $136.50/fn. Income: $136.50 + $700 = $836.50, over $380 by $456.50 → reduction $228.25 → payment $1,653.95. Assets: $250,000 below $481,500 → max. → $1,653.95/fn (income test binds).

5. Single non-homeowner renting with $500,000 financial assets. Non-homeowner threshold $579,500 → assets test at max. Deemed = $62,600 × 0.25% + $437,400 × 2.25% = $9,998/yr ≈ $384.54/fn. Income: $384.54 over $218 by $166.54 → reduction $83.27 → payment $1,166.03. → $1,166.03/fn (income test binds). The renter may also be eligible for Commonwealth Rent Assistance.

6. Couple homeowner with $700,000 financial assets and $50,000 car/contents. Total assessable = $750,000, over $481,500 by $268,500 → reduction $805.50 → assets test = $1,076.70. Deemed = $103,800 × 0.25% + $596,200 × 2.25% = $13,668/yr ≈ $525.69/fn. Income: $525.69 over $380 by $145.69 → reduction $72.85 → income test = $1,809.35. Lower = $1,076.70/fn (assets test binds).

Common pitfalls

• Counting your home as an asset. Your principal home is exempt regardless of value. Selling it can dramatically increase your assets test outcome.
• Forgetting the lower-of-two-tests rule. Centrelink applies whichever test gives the lower payment. Many people are surprised to find a "wealthy" portfolio assessment overrides a low-income calculation.
• Missing deeming. Bank account interest of $200/year does not count at $200 — it is deemed at the deeming rates, which can be much higher when balances are large. The reverse is also true: a $1m share portfolio earning 6% in dividends is still deemed at the 0.25% / 2.25% rates, often producing a lower assessable income than reality.
• Including the family home in net wealth. Some retirees overstate their assets by including the home — recalculate without it.
• Ignoring the Work Bonus. The first $300/fn of employment income is excluded entirely. Pensioners can earn around $7,800/year before any pension reduction starts.
• Using outdated thresholds. Rates change every 20 March and 20 September. Always confirm current figures with Services Australia before making decisions.
• Forgetting partner income. A couple's assets and income are combined, regardless of whose name they are in.
• Granny flat and gifting rules. Gifts above $10,000/year ($30,000 over 5 years) and granny flat contributions are deprived assets and remain assessable for five years. Not modelled here.

Related calculators

• Transition to Retirement Pension Calculator — strategy before Age Pension age.
• Super Minimum Pension Drawdown Calculator — the related minimum-payment rules for account-based pensions.
• SAPTO and LITO Tax Offset Calculator — tax offsets that complement the Age Pension.
• Commonwealth Rent Assistance Calculator — for non-homeowner pensioners.
• Spouse Super Contribution Calculator — pre-retirement strategy for couples.

Sources:

• Services Australia — Age Pension
• Services Australia — How much Age Pension you can get
• Services Australia — Income test for Age Pension
• Services Australia — Assets test for Age Pension
• Services Australia — Deeming
• Services Australia — Work Bonus
• DSS — Guide to Social Security Law