Age Pension –Deeming thresholds updated 1 July 2026

8 July 2026

Two significant deeming thresholds will increase on 1 July 2026. The first is the threshold at which the higher deeming rate of 3.25% applies. The second is the income free threshold at which income in excess of the threshold begins to reduce the maximum age pension amount.

Deeming rate threshold will from 1 July 2026 be:

  • $66,800 for single age pensioners (previously $64,200); and
  • $110,600 for coupled age pensioners (previously $106,200).

The income free area per fortnight will from 1 July 2026 be:

  • $226 for single age pensioners (previously $218); and
  • $396 for coupled age pensioners (previously $380).

For individuals who are already receiving a full age pension (that is the age pension which has not been reduced by either the income or assets test), these changes will have no impact.

For individuals who are receiving a part pension (that is the age pension has been reduced by either the income or assets test), these changes will have a beneficial impact. Assuming your assets and income have not increased, your age pension payments should increase.

For individuals who before 1 July 2026 had not qualified for a part age pension (solely due to the income or asset means test) they may now be entitled to a small part age pension. While the age pension entitlement may not be significant, the entitlement to even $1 of age pension means that they will be entitled to the Centrelink pensioner concession card (rather than the seniors health card).

The potential entitlement (albeit small part age pension) of individuals who had been previously excluded from a part age pension occurs due to the increase in the income levels and asset levels at which entitlement to a part age pension ceases.

From 1 July 2026, the relevant cut thresholds at which the entitlement to a part age pension ceases will increase to:

  • Income test
    • $2,627.80 per fortnight - single (previously $2,619.80); and
    • $4,016,80 per fortnight – couple combined (previously $4,000.80).
  • Assets test – homeowners
    • $733,500 – single (previously $722,000)
    • $1,102,500 – couple combined (previously $1,085,00)
  • Assets test – non-homeowners
    • $1,000,500 – single (previously $980,000)
    • $1,369,500 – couple combined (previously $1,343,000).

From 1 July 2026, the asset test free area (amount of assets below which there is no reduction to age pension entitlement) will be:

  • Income test
    • $226 per fortnight - single (previously $218); and
    • $396 per fortnight – couple combined (previously $380).
  • Assets test – homeowners
    • $333,000 – single (previously $321,500)
    • $499,000 – couple combined (previously $481,500)
  • Assets test – non-homeowners
    • $600,000 – single (previously $579,500)
    • $766,000 – couple combined (previously $739,500).

The above rates apply to resident age pension recipients who are not entitled to a transitional age pension.

 

 

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