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Retirement
4 minutes read
Who qualifies for the Age Pension in Australia?
The Age Pension provides vital financial support for many older Australians, but it comes with eligibility rules that are worth understanding well before you need them. Getting across the criteria around age, residency, income, and assets means you can plan more effectively and make sure you're accessing what you're actually entitled to.
Age requirement
To qualify for the Age Pension, you need to be 67 or older. This applies to both men and women. You can submit your claim up to 13 weeks before your 67th birthday, so there's no need to wait until the day itself.
Residency rules
To be eligible, you need to be an Australian resident and physically present in Australia on the day you lodge your claim. You also need to have been an Australian resident for at least 10 years, including at least five of those years continuously.
There are exemptions for refugees and former refugees, for women whose partner has died (provided both were Australian residents at the time and the woman has been a resident for at least two years), and for people covered under international social security agreements, where time spent in another country may count toward the residency requirement.
If you're unsure about your status, it's worth applying and speaking with a Services Australia representative to get a clear picture.
Income test
Your income affects both your eligibility and how much Age Pension you may receive. Services Australia looks at income from a broad range of sources, including employment (full-time, part-time, or casual), self-employment earnings, rental income, interest and dividends, superannuation income streams, and overseas pensions.
For financial assets like bank accounts and investments, the government applies deeming rules to estimate income, regardless of what those assets are actually returning.
As of 1 July 2025, the income thresholds for a full Age Pension are:
- Single: $218 per fortnight (approximately $5,668 per year)
- Couple (combined): $380 per fortnight (approximately $9,880 per year)
For singles, every dollar earned above the threshold reduces the pension by 50 cents per fortnight. For couples, each partner's pension reduces by 25 cents for every dollar earned above the combined limit.
Note: these thresholds are reviewed in March, July, and September each year. Always check Services Australia for the most current figures.
Assets test
The assets test looks at what you own, assessed at market value. This includes property other than your primary home, vehicles, caravans, boats, super and financial investments, business assets, household contents, and valuables.
As of 1 July 2025, the asset limits for a full Age Pension are:
- Single homeowner: up to $321,500
- Single non-homeowner: up to $579,500
- Couple homeowners (combined): up to $481,500
- Couple non-homeowners (combined): up to $739,500
For every $1,000 of assets above these thresholds, your pension reduces by $3.00 per fortnight.
Note: as with the income test, these thresholds are indexed and adjusted regularly. Check Services Australia for the latest limits.
Special considerations
A few things worth knowing that can make a real difference to how your assets and income are assessed:
Your principal place of residence is not counted as an asset. Prepaid funeral expenses may be exempt, depending on how they're structured. You can gift up to $10,000 in a financial year (and $30,000 over five years) without it affecting your pension. If you sell your home and intend to buy a new one, the proceeds may be exempt for up to 12 months. There are also provisions for people experiencing severe financial hardship, assessed case by case, even if assets technically disqualify them from the pension.
How to apply
You can apply for the Age Pension online through your myGov account linked to Centrelink. Have details ready about your residency and identity, income and assets, and relationship status.
Services Australia's Financial Information Service (FIS) is also worth knowing about. It's a free, confidential government service that can help you work through your options and make more informed financial decisions.
A final note
Age Pension eligibility can be complex, and the rules shift regularly. While Lifestyle Communities doesn't provide financial or legal advice, we're here to support you with the lifestyle side of retirement, helping you downsize, unlock equity, and enjoy low-maintenance, community-focused living.
If you're considering a move that supports your financial freedom and long-term comfort, we'd love to show you what Lifestyle Communities has to offer.
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