Old Age Pension Rates Australia

The Centrelink Age Pension is often referred to as the ‘Old Age Pension’.

What is the Old Age Pension?

The Old Age Pension in Australia is a social security benefit payable to people who satisfy certain age and residency requirements.

This may be the sole income of an individual, or it may be used in conjunction with other forms of pension or investment income. You may also be eligible for the Old Age Pension if you are still working.

Old Age Pension Rates (Australia)

The level of Age Pension income that you are eligible to receive (if any) is based on your income and assets.

The higher your income and/or assets, the lower level of Age Pension you are entitled to.

FREE Guide

Super Guy's 

Super Tips

For 2020

Boost your superannuation balance. 3 super strategies for a comfortable retirement. 

There are two tests to determine your level of entitlements:

  • Income Test
  • Assets Test

Whichever test ‘pays’ you the lowest level of Old Age Pension income is the test that will be applied.

The Old Age Pension Rates as at 1 December 2013 are as follows:

Pension Rates (fortnight) Single or Couple Separated by Illness Couple (each)
Maximum Basic Rate $751.70 $566.60
Maximum Pension Supplement $61.70 $46.50
Clean Energy Supplement $13.70 $10.30
TOTAL $827.10 $623.40

More up to date payment rates may be found here at the Human Services website.

Have You Read My Other Posts?

Income Test – as at 1 Dec 2013

Single (or Couple separated by illness) – You should receive the full Age Pension (above) if your fortnightly income is below $156/fortnight. The maximum basic rate will reduce by 50 cents for every dollar over $156/fortnight.

Couple – You should receive the full Age Pension (above) if your fortnightly income (combined) is below $276/fortnight. The maximum basic rate will reduce by 50 cents for every dollar over $156/fortnight.

Click here for Centrelink assessment of defined benefit pensions post 1 January 2016.

Click here for Centrelink assessment of account based pensions post 1 January 2015.

Assets Test – as at 1 Dec 2013

You should receive the full Age Pension (above) if your assets are below the thresholds noted below:

Family Situation For Home-Owners For Non Home-Owners
Single (or Couple Separated by Illness) $196 750 $339 250
Couple (combined) $279 000 $421 500

The maximum basic rate will reduce by $1.50/fortnight for every $1,000 above the asset values in the table above.

Important

The figures noted above for the Old Age Pension Rates and assessments should be used as a guide only. The figures generally change every quarter. You should speak to a Centrelink Officer to determine your eligibility and amount of Old Age Pension rate that you are entitled to. They tend to very helpful and can often provide you with a guide to your entitlements over the phone.

The best number for further information regarding the Age Pension is 13 23 00.

If you would like anything clarified or have any further questions, please do not hesitate to leave a comment in the section below.

Chris Strano

Chris Strano created SuperGuy to help the average punter navigate through the complex and ever-changing super rules. It has since become one of Australia's leading digital super resources. Subscribe to SuperGuy's YouTube channel for the latest strategies to boost your super savings. https://www.youtube.com/c/superguyau

More Posts

Follow Me:
FacebookYouTube

Previous

Next

4 Comments

  1. Patrick Daniels

    Hi Chris..I receive a part pension from Centrelink of $755 per fortnight..This is due to the fact that I receive a fornightly pension of $457 from EssSuper formerly known as the Victorian Govt Superannuation office as I worked for Vicroads for 24 years..Centrelink uses an income of approx $9150 to calculate my entitlement..I understand that from 1 Jan 2016 Centrelink will cap the deductible amount at 10%. How will that affect my entitlement from next year

    Reply
    • Chris Strano

      Hi Patrick
      Assuming that you are assessed under the Centrelink ‘income test’ this change in assessment will reduce your Age Pension entitlements. The current deductible amount on your ESS Super is equal to the difference between the actual amount received in payments each year ($11,882) and the amount assessed by Centrelink. If this difference is greater than 10% of your actual payment (i.e. $1,188 p.a.), then it will be reduced to 10%. Therefore, based on your payment of $457 per fortnight $411 would be assessed by Centrelink.
      Hope this makes sense.
      As always, you should discuss your situation with Centrelink for an accurate assessment. They are generally quite helpful and willing to run ‘proposed scenarios’ for you based on new rules so that you know where you stand. Try them on 132300.

      Reply
  2. Alysa

    Hi Chris
    I am 66 and recently resigned my full-time position and am seeking a part Centrelink Aged Pension. I will also look for part-time work as I enjoy working. I did see a Centrelink F.I.S. officer in the past 6 months. In the process of setting up an account based super pension I realised that I did not have to put 100% of funds from accumulation into the super pension fund. I am guessing the major impact of less than 100% transfer into pension fund will be tax considerations. Is there a rule of thumb or calculator to assess the benefits/impacts of a less than 100% transfer? Or is this a strategy only worth considering if one has a high value super balance?
    Thanks

    Reply
    • Chris Strano

      Hi Alysa,
      You are correct, you do not need to use all of your accumulation funds to start an account based pension.
      As far as Centrelink as concerned, an account based pension and an accumulation account is assessed exactly the same for people over Age Pension age.
      The benefit of using all of your savings to start an account based pension is that all investment earnings from assets within an account based pension are received completely tax free, compared to being taxed at up to 15% in accumulation phase. All pension income will generally be received tax-free also, due to you being over age 60.
      Further, by transferring all of your funds to am account based pension, you don’t have to worry about managing two accounts.
      The main downside of transferring all of your funds to an account based pension is that you are required to draw a minimum pension income equal to 5% of your account balance each financial year. A higher account balance means higher pension income. And, if this income is more than you require it will either build up in your personal bank account or may be spent, which could deplete your retirement savings sooner.
      Hope this helps,
      Chris
      Related Posts
      [SUPERGUY YOUTUBE] Accumulation vs Pension Phase
      Super Rules for Over 65s

      Reply

Submit a Comment

Your email address will not be published. Required fields are marked *