Frequently asked questions
From 1 July 2023 you will need to be age 67 to qualify for the age pension. It's worth noting that the age of eligibility for the Age Pension is subject to change over time, so its recommended checking the Services Australia Website for more information or contact your local Service Centre.
The amount of Age Pension you may be eligible for depends on your income (what you earn or are deemed to earn) and assets (what you own), as well as whether you are single or a member of a couple. The amount of Age Pension may also change over time and depends on the budget announcements and decisions of the government. The amount is usually indexed twice a year (after March and September).
Visit the Services Australia website for the full Age Pension amount
You can also use our Age Pension Calculator to check if you are eligible for the Age Pension and estimate the amount of pension you may be entitled to before lodging the application.
In Australia, there are several ways to lodge an application for the Age Pension:
- Online: You can apply for the Age Pension through the myGov website. Once you have created a myGov account and linked it to Services Australia, you can complete the online application form.
- By mail: You can download the Age Pension claim form from the Services Australia website and mail it to the address provided on the form, along with any required supporting documents.
- DenaroLink: Book a chat with us here at DenaroLink where we will be able to help you with the whole process and take the stress away from you.
It's important to have all the necessary information and documents ready when lodging your application, such as your birth certificate, passport, and evidence of income and assets.
You can also use our Age Pension Calculator to check if you are eligible for the Age Pension and estimate the amount of pension you may be entitled to before lodging the application.
This will depend on whether you own your own home or not and your relationship status (whether you are single or a couple). Please refer to the following link from the Services Australia website for more information.
- For a Full Pension (Lower Threshold)
- For a Part Pension (Upper Threshold)
Some examples of assets that may be considered by Services Australia include:
- Real estate, including rental properties and holiday homes.
- Vehicles, including cars, boats, and motorcycles.
- Savings and investments, including bank accounts, shares, and managed funds.
- Jewellery, artwork, and other valuable items
- Business assets, including equipment and inventory.
- Superannuation accounts, Account Based Pensions and any other retirement savings.
- Asset/Amount in excess of allowable gifting threshold that has been gifted within the last 5 years.
It's worth noting that certain assets may be exempt or partially exempt from the assets test if certain requirements are met, such as a person's primary residence (their home). Additionally, some assets, such as funeral bonds and prepaid funeral expenses, may not be counted towards your assets test at all.
It's always recommended to check with Services Australia for the most up to date information, as the assets test and the exemptions can change over time.
Please refer to the Services Australia website for more information.
Yes, if you qualify for the Age Pension, you are allowed to work and earn income. However, your Age Pension payments may be affected by your income and assets, as the Age Pension is means-tested. If you continue to work once you reach age pension age you will be entitled to the work bonus. The Work Bonus is an incentive for pensioners past age pension age to remain in the workforce by increasing the amount you can earn from employment or self-employment before your pension is reduced. This means the first $300 per fortnight of employment income you earn will be exempt and not count towards the income test. This means in some cases you can continue to work and still get some age pension. If you work, you will be automatically entitled to it and don’t need to apply for this. Income earned as self-employed or as a sole trader or from a partnership is also eligible.
Please refer to the following link from the Services Australia Website for more information.
If you are receiving the Age Pension and you start working, your payments may be adjusted based on your income. If your income exceeds a certain amount, known as the income test limits, your Age Pension payments will be reduced. In addition, any employment (salary and wages) or self-employed income (generated as a sole trader or partnership) is eligible for the work bonus.
It's recommended that you check with Services Australia before starting any work to understand how it may impact your pension payments.
It is worth noting that the amount of the Work Bonus has been temporarily increased from $300 per fortnight to $453 per fortnight to assist age pensioners with increased cost of living. This temporary increase will cease 31 December 2023 and the amount of the Work Bonus will revert to $300 per fortnight unless extended by the Australian Government.
Please refer to the Services Australia website for more information.
If your partner is younger and still working, you may still be eligible for the Age Pension, but the amount you receive may be affected by your partner's income and assets.
The Age Pension is means-tested, which means that your combined income and assets as a couple are taken into account when determining your eligibility for the age pension and the amount you are eligible to receive. If your combined income or assets exceed a certain limit, your Age Pension may be reduced, or you may not be eligible for the pension at all.
It's important to note that the income and assets test limits for the Age Pension are different for members of a couple than for single individuals. The combined income and assets limits are generally higher for members of a couple than for single individuals.
Please refer to the following link from the Services Australia Website for more information.
- For a Full Pension (Lower Threshold)
- For a Part Pension (Upper Threshold)
- Income Test
The value of a farm or rural property may be considered when determining your eligibility for the Age Pension however this will depend on a few factors and it is recommended that you contact your local Service Australia Office for more information. Please refer to this link from the Services Australia Website for more information.
Yes, if you own a holiday home, it will be considered as an asset by Services Australia when determining your eligibility for the Age Pension. The value of your holiday home will be included in the assets test and will be taken into account when determining your eligibility for the Age Pension and the amount you are eligible to receive.
It's worth noting that if the holiday home is being used to generate income (i.e. being rented out) then the net rental income will be included as part of your overall income and assessed against the income test limits.
Also, it's important to note that if your holiday home is your principal place of residence, it is generally exempt from the assets test. Please refer to the following link from the Services Australia Website for more information.
- For a Full Pension (Lower Threshold)
- For a Part Pension (Upper Threshold)
- Income Test
When your partner dies, you will then be reassessed by Services Australia as a single person. You will need to inform the Services Australia as soon as possible of your partner's death and provide a copy of the death certificate. One you are assessed as a single the amount of assets and income you can have will be lower than that of a couple. Please refer to the following link from the Services Australia Website for more information.
- For a Full Pension (Lower Threshold)
- For a Part Pension (Upper Threshold)
- Income Test
In addition, it is possible to apply for the Bereavement Payment which is a short-term payment that may be paid to eligible people whose partner has died. It's always best to check with Services Australia directly or consult a financial advisor to see how the death of your partner will affect your specific situation. Please refer to the following link from the Services Australia Website for more information.
https://www.servicesaustralia.gov.au/what-help-there-when-adult-dies?context=60101#a1
If you and your partner own combined assets in excess of the assets test threshold and do not qualify for the Age Pension, there may be other government benefits and concessions that you may be eligible for. Some of these benefits include:
- Commonwealth Seniors Health Card: This card provides access to discounts on prescription medicines, bulk billed GP consultations and other health-related services. You will need to be Age Pension age to be eligible for this card
- Low Income Health Care Card: If you or your partner have low income, you may qualify for this card which provides discounts on prescription medicines and access to some other state-based benefits.
You will need to meet the relevant income tests of each card to qualify. These cards are not subject to the assets test. Please refer to the following link from the Services Australia Website for more information.
You can also use our Commonwealth Seniors and Low Income Health Card Calculators here to check if you are eligible for either card before lodging the application.
Receiving a compensation payment may affect your Age Pension and this is a very complex area as the way the compensation payment is treated will depend on the type of compensation and how it is paid. It's best to check with Services Australia directly or consult a financial advisor to see how the compensation payment will affect your specific situation. You must report the change in your circumstances as soon as possible to avoid overpayment. Please refer to this link from the Services Australia Website for more information.
Receiving an inheritance can affect your Age Pension . This will depend on the amount of the inheritance you received and how you use it. The value of the inheritance will be included in the assets and income test and will be taken into account when determining your eligibility for the Age Pension and the amount you are eligible to receive.
Additionally, it is also advisable to seek advice from a registered tax agent to understand the tax implications of your inheritance.
Gifting can be considered as a way of reducing assets to qualify for the Age Pension, but there are limits on the amount that can be gifted. You can gift up to $10,000 in a single financial year without it affecting your pension payments. However, this amount cannot exceed $30,000 over a period of five financial years.
In addition, any amount over the $10,000 in a financial year will then be counted towards the asset test and income test for a period of up to 5 years. If the asset/amount gifted is more than the allowable amounts, it will be taken into account under the assets test and will be subject to deeming under the income test for a period of five years after the date of the gift. This means that gifting may affect the amount of Age Pension you receive.
It's important to note that gifting may not be in your best interest if you are already receiving the Age Pension, as it may reduce or even cause you to lose your eligibility for the pension. So, before gifting, it's always best to seek financial advice and check with Services Australia on how it will affect your specific situation.
Services Australia provides an exemption for people who are selling their home to purchase a new one. The money received from the sale that is intended to be used for the new home will not be included in the assets test for a period of 24 months from the date of the exchange of contracts. If you are building a new home, the land that you purchase is also exempt for up to 24 months under the assets test. This applies if the value of the land is less than the amount you received from the sale of your home. This means that the money will not affect your Age Pension eligibility and payments during that period. It's important to inform Services Australia of your intentions to purchase a new home, so they can apply the correct exemptions and ensure your Age Pension entitlement and payments are accurate.
Although exempt under the assets test if the sale proceeds are then deposited into a financial asset such as a bank account or term deposit, the amount will be subject to deeming by Services Australia. Deeming is a method used to calculate the income earned on financial assets, regardless of the actual income earned. For the proceeds that are intended to be used for the purchase of a new home, Services Australia will apply the lower deeming rate. However, for any extra sale proceeds held in a financial asset, the regular deeming rates will apply. This means that even though the assets are exempt from the assets test, the income earned from them will be taken into account for the income test. Please refer to this link from the Services Australia Website for more information.
It is important to let Services Australia know as soon as possible if anything changes that may affect your Services Australia payments and benefits. You are required to report changes in your circumstances within 14 days of the change occurring. This includes changes in your income, assets, living arrangements, and any other information that is relevant to your eligibility for benefits. Examples of changes that you must report to Services Australia include:
- Starting or leaving a job
- Changes in your income or assets (e.g. inheritance, sale of property)
- Moving to a new address
- Going on or returning from a trip overseas
- Starting or ending a relationship
If you do not report changes in your circumstances, you may be overpaid or underpaid, which could result in having to pay back money to Services Australia, or even facing penalties. It's always best to be transparent and report any changes as soon as they happen. You can report changes through the myGov website, by phone, in person, or by mail.
If you're planning to go on a holiday, you may need to let Services Australia know, as it may affect your eligibility for the Age Pension. The rules around travel and the Age Pension can be complex, and it depends on a number of factors including the length of your trip, the purpose of your travel, where are you travelling to, etc.
If you're planning to go on a holiday and will be away from home for more than six weeks, you will need to let Services Australia know. You will also need to let Services Australia know if you're planning to be away for more than 26 weeks, as your pension payments may be impacted after 26 weeks.
If you're going on a holiday and expect to be away for less than six weeks, your Age pension will not be impacted. However, if you're going on a holiday and expect to be away for more than six weeks, you will need to let Services Australia know and provide the details of your travel plans, including the dates and the purpose of your trip.
It's always best to check with Services Australia before you go on a holiday to confirm how it will affect your pension payments and to ensure that you do not miss out on any payments while you are away. Please refer to the following link from the Services Australia Website for more information.
If you and your partner have combined assets in excess of the assets test threshold and do not qualify for the Age Pension, there may be other government benefits and concessions that you may be eligible for. Some of these benefits include:
- Commonwealth Seniors Health Card: This card provides access to discounts on prescription medicines, bulk billed GP consultations and other health-related services. You will need to be Age Pension age to be eligible for this card
- Low Income Health Care Card: If you or your partner have a low income, you may qualify for this card which provides discounts on prescription medicines and access to some other state-based benefits.
You will need to meet the relevant income tests of each card to qualify. These cards are not subject to the assets test. Please refer to the following link from the Services Australia Website for more information.
You can also use our Commonwealth Seniors and Low income Health Card Calculators here to check if you are eligible for either cards before lodging the application.