If you're nearing retirement or already receiving the Age Pension, there's good news. Starting 1 July 2025, the Australian Government will increase the Age Pension means test thresholds — a change that could make more older Australians eligible for a full or part pension and potentially increase current payments.
What Are the Age Pension Means Tests?
To qualify for the Age Pension, Australians aged 67 and over must meet both income and asset tests. These tests assess your financial situation — including income from work or investments, and the value of your assets (excluding your home).
From July 2025, the income and asset limits will rise, which means:
Your payment is based on whichever test (income or assets) gives you the lower pension. If either test disqualifies you, you won’t receive a payment.
Updated Income Test Thresholds from 1 July 2025
The income test considers money you earn from work, savings interest, dividends, and rental income. Deeming rates apply to financial assets like bank accounts and managed funds.
From 1 July 2025, new fortnightly income limits will apply:
| Situation |
Max income for full pension |
Cut-off for part pension |
| Single |
$218 |
$2,516 |
| Couple (combined) |
$380 |
$3,844 |
You can earn up to these amounts and still receive the full or part pension. Every dollar above the lower threshold reduces your pension by:
Note: The Work Bonus allows pensioners to earn up to $300 per fortnight from work without it affecting their pension.
Updated Assets Test Thresholds from 1 July 2025
The assets test looks at the value of things you own (excluding your home). This includes cash, shares, vehicles, investment properties, and more.
Here are the new limits:
| Situation |
Full pension (homeowner) |
No pension (homeowner) |
Full pension (non-homeowner) |
No pension (non-homeowner) |
| Single |
$321,500 |
$704,500 |
$579,500 |
$962,500 |
| Couple (combined) |
$481,500 |
$1,059,000 |
$739,500 |
$1,317,000 |
If your total assets are under the threshold, you may qualify for the full pension. If they’re above the lower limit but under the cut-off, you may receive a part pension.
How These Changes Could Benefit You
These updated Age Pension thresholds could make a real difference in your retirement planning:
Keep in mind: Centrelink applies both income and asset tests, and you must pass both to receive a pension.
Need Help?
If you're unsure how these changes affect your personal situation, we’re here to help. Contact us to find out what you're eligible for and how to plan ahead.
