How the Age Pension works
To qualify for the Age Pension in Australia you must have reached Age Pension age (which depends on your date of birth but is currently 66), satisfy Australian residency rules, and pass both an income test and an assets test. Depending on your level of income and the assets you own, you may qualify for either a full or part Age Pension.
Assets test
To qualify for a full Age Pension as a single person your assets must also be valued below $268,000 if you own your own home, or $482,500 if you don’t own your own home. You can still be eligible for a part Age Pension if your assets are worth less than $585,750 if you own your own home, or $800,250 if you don’t own your own home.
For a couple to qualify for the full Age Pension, your combined assets must be below $394,500 if you own your own home, or $616,000 if you don’t own your own home. You can still be eligible for a part Age Pension if your assets are worth less than $880,500 if you own your own home, or $1,095,000 if you don’t own your own home.
Learn more about how the assets test works.
Income test
To qualify for a full Age Pension as a single person your income must be below $178 per fortnight (approximately $4,628 per year), but you can still be eligible for a part Age Pension if you earn less than $2,083.40 per fortnight (approximately $54,168 per year).
For a couple, to qualify for the full Age Pension your combined income must be below $316 per fortnight (approximately $8,216 per year), but you can still be eligible for a part Age Pension if you earn less than $3,188.40 per fortnight (approximately $82,898 per year).
It’s important to note that you can earn up to $300 per person per fortnight from working and this amount is not included in the Age Pension income test. This is known as the work bonus.
Learn more about how the income test works.
Can you get an advance payment of the Age Pension?
Yes. If you’ve been receiving the Age Pension for at least three months, you can apply to get one to three advance payments. If you’re approved, in any six-month period you’re entitled to receive the following amounts if you’re receiving a full pension:
If you’re receiving a part Age Pension, the amounts you can receive are adjusted proportionally.
Your future Age Pension entitlement will be adjusted for any advance payments you receive so you can repay amounts owing over time.
Can you also get rent assistance?
If you’re receiving the Age Pension, you may be entitled for rent assistance (including any fees you may be paying a retirement village, provided that the Australian government isn’t already paying a subsidy to the facility where you live).
To receive assistance, you must be paying a minimum amount of rent. These rates are adjusted in March and September each year based on movements in the CPI. Current rates for Age Pensioners without any dependent children are outlined in the table below. If you pay more than these amounts, you’re entitled to 75 cents of rent assistance for every dollar you pay over the threshold, up to the maximum amount.
For more information on Age Pension eligibility, read article by Barbara Drury of SuperGuide here.
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