Age Pension Rates 2026: How Much Will You Get?
Complete guide to Australian Age Pension rates for 2026, including single and couple rates, pension supplements, and when the next rate increase happens.
Current Age Pension Rates (March 2026)
The Age Pension is the primary retirement income support payment for eligible older Australians. As of the March 2026 indexation, the maximum basic rate for a single person is $1,116.30 per fortnight ($558.15 per week). For couples, the maximum combined rate is $1,682.80 per fortnight ($841.40 each, or $420.70 per week each). These figures represent the base pension rate before supplements are added. The Age Pension is indexed twice a year on 20 March and 20 September, using the higher of the CPI increase or the Pensioner and Beneficiary Living Cost Index (PBLCI). Additionally, the combined pension (base plus supplements) must remain at or above 41.76% of Male Total Average Weekly Earnings for singles and 63.7% combined for couples. This benchmarking mechanism — introduced as part of pension reforms — ensures the pension keeps pace with community living standards, not just inflation.
Pension Supplement and Energy Supplement
On top of the base pension rate, all Age Pension recipients receive the Pension Supplement and may receive the Energy Supplement. The maximum Pension Supplement is $81.60 per fortnight for singles and $61.40 each for members of a couple ($122.80 combined). This supplement rolls together the old GST Supplement, Pharmaceutical Allowance, and Utilities Allowance into one payment. You will receive the full Pension Supplement if your income is below the Pension Supplement basic amount threshold. The Energy Supplement is $14.10 per fortnight for singles and $10.60 each for couples. Combining the base rate, Pension Supplement, and Energy Supplement, the total maximum fortnightly payment is $1,212.00 for a single person and $1,825.40 for a couple combined. These figures do not include Rent Assistance, which can add up to $188.20 per fortnight for eligible renters. The Pension Supplement is paid as part of your regular pension — you do not need to apply for it separately.
Age Pension Income Test Explained
The income test determines whether you receive a full or part pension, or no pension at all. For singles, you can earn up to $204 per fortnight in assessed income before your pension starts to reduce. For couples combined, the income free area is $360 per fortnight. For every dollar of income above the free area, your pension reduces by 50 cents for singles or 50 cents combined for couples (25 cents each). This means the pension cuts out entirely when assessed income reaches about $2,436.60 per fortnight for singles ($63,351 per year) or $3,725.60 combined for couples. Assessed income includes employment income, deemed income from financial investments, rental income, superannuation pension income (if account-based pensions started after 1 January 2015), and certain other income streams. Employment income receives special treatment through the Work Bonus, which allows pensioners to earn up to $300 per fortnight from employment without it counting as income for the pension test.
Age Pension Asset Test Thresholds
The asset test sets upper limits on how much you can own and still receive a pension. There are two thresholds — a lower threshold for the full pension and an upper threshold where the pension cuts out entirely. For homeowner singles, the full pension asset threshold is $301,750 and the cutoff is $686,250. For homeowner couples, the full pension threshold is $451,500 combined and the cutoff is $1,030,000. Non-homeowner thresholds are higher: singles can have up to $543,750 for the full pension (cutoff $928,250), and couples can have up to $693,500 (cutoff $1,272,000). Between the lower and upper thresholds, your pension reduces by $3.00 per fortnight for every $1,000 of assets above the lower threshold. This is called the taper rate. Assets include superannuation (all of it, regardless of whether it is in accumulation or pension phase), bank accounts, shares, investment properties, vehicles, caravans, boats, and personal effects above a certain value. Your principal home is excluded.
Work Bonus for Age Pensioners
The Work Bonus is a valuable incentive for Age Pension recipients who continue to work. Under the Work Bonus, the first $300 of employment income per fortnight is not counted as income for the pension income test. This is on top of the regular income free area of $204 per fortnight for singles. If you do not use your full $300 Work Bonus in a fortnight, the unused amount accumulates in a Work Bonus income bank, up to a maximum of $11,800. This means if you have not worked for a while and have built up a full income bank, you could earn up to $11,800 in employment income before any reduction to your pension, plus the ongoing $300 per fortnight exemption. The Work Bonus only applies to employment income — it does not apply to investment income, rental income, or business income (unless you are a sole trader actively working in the business). The Work Bonus resets to a $4,000 opening balance for new pension recipients.
How the Pension Is Calculated If Both Tests Apply
If you have both income and assets, Centrelink calculates your pension entitlement under both the income test and the asset test separately, then pays you the lower of the two amounts. This is often misunderstood — many people assume the tests are combined, but they are applied independently. For example, if the income test says you are entitled to $900 per fortnight but the asset test says you are only entitled to $700 per fortnight, you will receive $700. Conversely, you might pass the asset test easily but have your pension significantly reduced by investment income. It is worth modelling both tests to understand which one is limiting your pension. Our Age Pension Calculator does this automatically. A common strategy is to structure your finances to optimise both tests simultaneously — for example, paying down your mortgage (removes an income-producing asset and increases the value of your exempt home) or spending down excess assets to move below the full pension threshold.
When Is the Next Pension Increase?
Age Pension rates increase on 20 March and 20 September each year through indexation. The March 2026 indexation has already been applied to the rates in this article. The next increase will take place on 20 September 2026. The amount of the increase depends on three measures: the CPI, the Pensioner and Beneficiary Living Cost Index (PBLCI), and Male Total Average Weekly Earnings (MTAWE). The pension base rate increases by the greater of the CPI or PBLCI percentage change, and is then benchmarked to ensure the single rate equals at least 41.76% of MTAWE. In recent indexation rounds, increases have ranged from approximately $15 to $40 per fortnight for singles. New rates are usually announced by the Department of Social Services one to two weeks before they take effect. We update this page after every indexation — bookmark it to stay informed.
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General information and estimates only — not financial, tax, or legal advice. Always verify with Services Australia.
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