The latest Age Pension changes are coming into effect on 20 September 2026, with increases to the maximum Age Pension payments, income and asset test cut-off thresholds and deeming rates.
These changes are part of the regular indexation of the Age Pension, which occurs twice a year to help payments and thresholds keep pace with changes in the cost of living and wages.
While the increases may seem modest, they can make a difference to your retirement income, particularly if you’re close to an Age Pension income or asset threshold.
In this article, we look at what’s changing from 20 September 2026, including tables and guides to the new Age Pension rates, thresholds and deeming rates, and what these changes could mean for you.
What are the New Changes to Age Pension from 20 September 2026?
From 20 September 2026, several Age Pension rates and thresholds have changed.
The key changes include:
- An increase in the maximum Age Pension payment
- Higher asset test cut-off thresholds
- Higher income test cut-off thresholds
- An increase in deeming rates
- No change to the full Age Pension asset and income thresholds introduced from 1 July 2026
These changes don’t affect everyone in the same way. Your individual circumstances, including your relationship status, home ownership, income and assessable assets, will determine how much Age Pension you may receive.
Age Pension Rates from 20 September 2026
From 20 September 2026, the maximum Age Pension payment has increased by:
- $36.80 per fortnight for singles
- $55.60 per fortnight for couples combined
Below is a clear breakdown of the updated Age Pension rates, comparing previous amounts with the new rates effective from 20 Sep 2026.
For Singles;
For Couples;
Age Pension Asset Test Threshold Changes from 20 September 2026
There is an important distinction to note here. The full Age Pension asset thresholds will remain unchanged from the changes introduced on 1 July 2026 and only the higher asset cut-off thresholds that determine when your part Age Pension stops completely will increase from 20 September 2026.
For example, from 20 September 2026, a couple who own their home can have up to $1,121,000 in assessable assets before their Age Pension cuts out completely. For a couple who don’t own their home, the cut-off is $1,388,000.
Here is the full breakdown of the asset test limits for the part Age Pension from 20 September 2026.
The table below outlines the asset thresholds for receiving the full Age Pension, which were introduced from 1 July 2026 and remain unchanged following the September 2026 changes.
Age Pension Income Test Changes from 20 September 2026
The income test is another factor that determines how much Age Pension you receive.
The amount you can earn before your Age Pension starts to reduce remains unchanged from the thresholds introduced on 1 July 2026.
However, the income cut-off points increased from 20 September 2026.
The new cut-off income limits are:
It’s important to remember that Centrelink applies both the income and assets tests when assessing your Age Pension entitlement.
Your payment is generally determined by whichever test produces the lower entitlement.
Deeming Rates Increased from 20 September 2026
One of the key changes for retirees with financial assets is the increase in deeming rates.
Deeming is used by Services Australia to estimate the income your financial assets are assumed to earn, regardless of the actual return those assets generate.
From 20 September 2026:
- The lower deeming rate increased from 25% to 1.75%
- The upper deeming rate increased from 25% to 3.75%
The relevant deeming thresholds also apply based on your relationship status and pension circumstances.
The higher rate applies to your financial assets above the lower threshold shown in the table above.
Age Pension when One Partner is Eligible
It’s quite common for couples to reach Age Pension age at different times. If you’re married or in a de facto relationship and only one of you is eligible for the Age Pension, you will generally still be assessed as a couple.
This means Centrelink will consider both partners’ income and assets when determining the eligible partner’s Age Pension entitlement, even though only one person is receiving the payment.
From 20 September 2026, the maximum Age Pension rate for a partnered person is $933.00 per fortnight, including the maximum Pension Supplement and Energy Supplement. This is the rate that can apply when one partner is eligible, assuming the eligible person qualifies for the maximum rate and is not affected by the income or assets tests.
Your actual payment may be lower depending on your combined income and assets. The Age Pension income and assets tests apply to the couple’s circumstances, rather than assessing the eligible partner in isolation.
It’s also worth remembering that your partner does not need to be receiving the Age Pension for their income or assets to be relevant to the assessment. A younger partner’s super is generally not assessed while they are under the Age Pension age and their super remains in accumulation phase. Once they reach Age Pension age, currently 67, their super becomes assessable regardless of whether they are receiving the Age Pension.
With that said, the way your income, assets and super are structured can make a difference to your Age Pension entitlement. Before making any changes, it’s important to understand how the rules apply to your circumstances and seek professional advice to ensure your decisions support your broader retirement plan.
When is the Next Age Pension Increase?
The next scheduled Age Pension increase is expected in March 2027.
The Age Pension is generally reviewed and adjusted twice a year, in March and September, to help payments and thresholds keep pace with changes in the cost of living and wages. These regular changes can affect your Age Pension entitlement and may also have implications for your broader retirement strategy.
To stay up to date with the latest Age Pension changes and retirement insights, subscribe to our newsletter and receive updates straight to your inbox.
Could You Be Eligible for More Age Pension?
The Age Pension rules can be complex, and even small changes to your income, assets or personal circumstances can affect how much you receive.
If you’ve recently reached Age Pension age, your circumstances have changed, or you’re close to an income or asset test threshold, it may be worth reviewing your eligibility to make sure you’re receiving what you’re entitled to.
Your retirement income strategy can also make a difference. How you draw income from super, manage your investments and structure your assets can all affect how your finances are assessed under the Age Pension rules.
Rather than looking at the Age Pension in isolation, it’s important to consider how it fits alongside your super, investments and other sources of retirement income. A well-structured retirement strategy can help you make informed decisions about your income today while supporting your longer-term financial goals.
Before making changes to your finances, consider how they could affect both your Age Pension entitlement and your overall retirement plan.
How Yield Retirement Advisors Can Help You?
The Age Pension is an important part of retirement planning, but it’s only one piece of the puzzle. At Yield, we look at how your Age Pension, super, investments and other sources of income can work together to support the retirement you want.
Rather than simply looking at whether you’re eligible for the Age Pension, we help you understand how much you may be entitled to, how your income and assets are assessed, and how this fits into your broader retirement strategy.
We can help you:
- Understand how the latest September 2026 changes could affect your entitlement
- Review your current Age Pension eligibility and entitlements
- Understand how the income and assets tests apply to your circumstances
- Assess how the new deeming rates could affect your income assessment
- Develop a retirement income strategy that works alongside your Age Pension
- Make informed decisions about your super, investments and other assets
- Build a sustainable retirement strategy designed around your lifestyle and long-term goals
The goal isn’t simply to maximise your Age Pension. It’s about making sure all the pieces of your retirement plan work together so you can make the most of your available resources while maintaining the lifestyle you want.
If you’re unsure how the latest Age Pension changes could affect you, our team is here to help. Reach out to book a free, no-obligation consultation and take the next step towards a clearer, more confident retirement.
