From 20 March 2026 the age pension rates will rise by $22.20 (single rate) and $33.40 (partnered combined rate) per fortnight.

The age pension for single pensioners will increase to $1,200.90 per fortnight (from, $1,178.70 per fortnight).

The age pension for partnered pensioners (both receiving the pension) will be $905.20 per fortnight each (or $1,810.40 per fortnight combined) from $888.50 per fortnight (or $1,777.00 per fortnight combined).

These figures are the maximum age pension limit.  The age pension payable to a particular pensioner or pensioner couple is determined by the application of the means tests – both the income and assets means test.

The increase in the maximum age pension causes an increase in the cut off thresholds of the income and assets tests at which an entitlement to the age pension will cease.

Income Means Test – from 20 March 2026, the cut-off threshold will be $2,619.80 per fortnight (single) and $4,000.90 per fortnight (couple combined). The cut-off threshold is amount of income counted for the purposes of the income means test which reduces the age pension entitlement to nil.

Assets Means Test – from 20 March 2026, the cut-off thresholds are set out below:

Homeowner

• Single – cut-off threshold will be $722,000 (an increase of $7,500).

• Couple (Combined) – the cut-off threshold will be $1,085,000 (an increase of $11,000).

Non-Homeowner

• Single – cut-off threshold will be $980,000 (an increase of $7,500).

• Couple (Combined) – the cut-off threshold will be $1,343,000 (an increase of $11,000).

The cut-off threshold is the aggregate value of assets counted for the purposes of the assets means test which reduces the age pension entitlement to nil.

Unfortunately, the beneficial impact of the pension increase may be reduced by the increase in the below rate threshold (or low rate) and above rate threshold (or high rate) income deeming rates of 1.25% (previously 0.75%) and 3.25% (previously 2.75%) respectively.