The Age Pension is a fortnightly sum paid to Australians aged 67 years or older to help them fund a basic retirement.
The catch is, not everyone over 67 years old is eligible. And the payment amount you could get is heavily dependent on your income and the value of assets you own.
Here's everything you need to know about the Age Pension income test, the asset test, and how much you could get.
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The maximum Age Pension payment
The Age Pension has a maximum total fortnightly payment of $1,200.90 for retired singles and $1,810.40 for couples combined.
These sums include the maximum basic rate, the maximum pension supplement, and the energy supplement.
How is my final payment level calculated?
Centrelink assesses you under both an income and an asset test. It then applies whichever gives you the lowest rate of payment for your individual circumstances.
What is the Age Pension income test?
The income test assesses all of your income, pooled from all sources.
Your income includes your wages, but also includes anything from superannuation contributions, investment income, bonuses, or commission payments.
It's also applicable regardless of your age.
In order to receive the full Age Pension single Australians can earn up to $226 per fortnight. Meanwhile, couples can earn up to $396 per fortnight.
But the good news is that if you're over these thresholds, you could still be eligible for some sort of part payment.
Single Australians can earn up to $2,627.80 per fortnight. Then and couples (living together) can earn up to $4,016.80 per fortnight and still qualify for at least a part-Age Pension, which is assessed on a sliding scale.
For a single person, your Age Pension will reduce by 50 cents for each dollar over $226. For couples it will reduce by 25 cents for each dollar over $396.
It means that the more you earn, the lower your Age Pension payment will be, until it reaches zero.
What about the Age Pension asset test?
The asset test includes everything you own, whether it's in full, in part, or you have an interest in. It does exclude your primary residence.
In order to receive the full Age Pension, single homeowners cannot own assets valued at $333,000 or more. For non-homeowners, this will be up to $600,000.
Meanwhile, a couple (combined) can own up to $499,000 in value if they own a property, or $766,000 if they don't.
Again, as with the income test, if you're over these thresholds, it's still possible to get some sort of partial payment.
Single Australians who are homeowners can own assets valued up to $733,500, and single non-homeowners can own assets valued up to $1,000,500, and still be eligible for some level of part-payment.
Couples are also entitled to a partial payment, provided their combined assets don't exceed $1,102,500 for homeowners. Non-homeowners can own assets totalling no more than $1,369,500.
