How much income do you earn?
You may earn up to a certain level of income before your Age Pension payments start decreasing. The Income test includes all sources of income including employment income and investment income. Deeming rules are used to work out income from your financial assets. The income is added to your other income before the income test is applied.
| Family situation | To receive the maximum Age Pension, your income must be below: | You won’t receive the Age Pension if your income exceeds: |
|---|---|---|
| Single | $212 a fortnight | $2,500.80 a fortnight |
| Couple (combined)1 | $372 a fortnight | $3,822.40 a fortnight |
1Different limits apply for couples separated due to illness.
Social Security deeming rates
A simple rate is applied to ‘deem’ the amount of interest you have earned from your financial assets. The calculation is used to determine how much to include as income under the income test.
If you’re single, the first $62,600 of your financial assets has the deemed rate of 0.25% applied. Anything over $62,600 is deemed to earn 2.25%. If you’re part of a couple and at least one of you get a pension, the first $103,800 of your combined financial assets has the deemed rate of 0.25% applied. Anything over $103,800 is deemed to earn 2.25%.
For details visit the Services Australia website.
What is the Work Bonus?
The Work Bonus is a Government incentive to keep older Australians in the workforce. It lets you earn up to $300 a fortnight and save any unused amount up to a maximum of $11,8001 each year before your Age Pension payments are reduced. This amount is not counted under the Income test. So, if you keep working part-time, you could supplement the Age Pension and use less of your super.
1Services Australia, 1 January 2024.