Updated on 03 July 2026
The latest Age Pension changes came into effect on 20 March 2026, bringing updates to payment rates, income limits and asset thresholds. From 1 July 2026, the income and asset test thresholds increased again as part of the regular indexation process, while payment rates remained unchanged.
While the increases may appear modest at first glance, these changes can meaningfully impact:
- How much Age Pension you receive
- Whether you qualify at all
- The strategies you use to structure your wealth in retirement
Whether you’re already receiving the Age Pension or approaching eligibility age, these changes could have a real impact on your budget, lifestyle, and peace of mind. This guide has been updated to reflect the latest thresholds from 1 July 2026.
Age Pension Rates from 20 March 2026
The Age Pension is indexed twice per year to keep pace with inflation and wage growth. The March 2026 update resulted in a modest increase across all payment categories.
From 20 March 2026, the maximum full Age Pension, including supplements, will increase by:
- $22.20 per fortnight for singles
- $33.40 combined ($16.70 each) per fortnight for couples
Below is a clear breakdown of the updated Age Pension rates, comparing previous amounts with the new rates effective from 20 March 2026.
For Couples;
What is the Asset Test for Age Pension and Thresholds from 1 July 2026?
In simple terms, the asset test looks at the total value of what you own (excluding your family home) and compares it against set thresholds. Your assets can include a wide range of asset types, not just what you directly own outright, but also anything you partially own or have a financial interest in. This extends beyond physical possessions to include assets held both in Australia and overseas, as well as any money owed to you.
The table below outlines the asset thresholds from 1 July 2026 for receiving the full Age Pension, depending on your situation.
If your assets exceed these limits, you may still be eligible for a part Age Pension, provided your assets fall within the higher cut-off thresholds shown in the following table from 1 July 2026.
Age Pension Income Threshold From 1 July 2026
Alongside the asset test, the income test is another key factor in determining your Age Pension eligibility.
In simple terms, the income test looks at the income you and your partner earn from all sources, including employment, investments, and superannuation income streams. For financial assets, Services Australia applies deeming rates to estimate how much income they generate.
As your income increases, your Age Pension entitlement gradually reduces. Once your income exceeds certain cut-off limits, you may no longer be eligible to receive any Age Pension.
From 1 July 2026, the updated income thresholds are outlined below, showing how much, you can earn while still qualifying for Age Pension, depending on your situation.
Deeming Rates From 20 March 2026
Deeming is the method Services Australia uses to estimate the income earned from your financial assets, regardless of the actual returns you receive.
From 20 March 2026, deeming rates have increased compared to the previous settings that were in place from 20 September 2025. The lower deeming rate has increased from 0.25% to 1.25%, while the upper rate has increased from 2.25% to 3.25%.
How Deeming Rates Apply Based on Your Situation
The way deeming is applied depends on your relationship status and whether you (or your partner) receive the Age Pension.
- Single
The first $64,200 of your financial assets is deemed to earn 1.25%, with any amount above this deemed at 3.25%.
- Couple (at least one receiving a pension)
The first $106,200 of your combined financial assets is deemed at 1.25%, and the remaining balance is deemed at 3.25%.
- Couple (neither receiving a pension)
Each person has a threshold of $53,100 applied to their share of financial assets at 1.25%, with any excess deemed at 3.25%.
Understanding how these thresholds apply to your situation is important, as it directly affects how your income is calculated under the income test and ultimately, how much Age Pension you may receive.
When is the Next Aged Pension Increase?
The next aged pension increase is scheduled for 20 September 2026.
The Age Pension is reviewed and adjusted twice a year, in March and September, to help keep payments in line with changes in the cost of living and wages. As these updates can impact both your entitlements and overall retirement strategy, it’s important to stay informed.
To keep up with the latest age pension changes and insights, subscribe to our newsletter and receive updates straight to your inbox.
How Yield Retirement Advisors Can Help You?
At Yield, we work closely with clients to simplify the complexities of the Age Pension and help them feel more confident about their financial future.
We know the rules can feel overwhelming and that it’s not always clear how they apply to your personal situation.
We can help you:
- Understand exactly where you stand today
- Identify whether you could be eligible for more support
- Structure your assets in a way that supports both your lifestyle and entitlements
- Align your super and Age Pension into a clear, sustainable income plan
Most importantly, we look at your complete financial picture not just the Age Pension in isolation, so every decision works together to support your lifestyle, your goals, and your long-term security.
If you’re looking for trusted guidance to help you make the most of your retirement, we’re ready to help. Reach out to book your free initial consultation and connect with one of our retirement experts.
