Age Pension Means Test & Deeming
Estimate your Age Pension based on your income, savings and other assets. See how the income and assets tests affect your payment.
How this tool works
Reviewed 6 September 2026. Services Australia Age Pension parameters (Age 67), deeming rates (0.25% & 2.25%), and means test taper rules.
Calculation outline
- Calculates assessable deemed income from financial assets using Services Australia tiered deeming rates (0.25% up to thresholds, 2.25% on balances above).
- Applies the Work Bonus ($300 fortnightly exemption) to earned employment income before applying the Income Test.
- Models the Income Test with fortnightly free areas ($226 single, $396 couple) and 50c per dollar taper reduction.
- Models the Assets Test with homeowner and non-homeowner thresholds and the $3.00 per $1,000 taper per fortnight, with primary residence 100% exempt.
- Determines the test that sets your payment (the test producing the lower payment), outputs final payable pension, and checks Pensioner Concession Card (PCC) and Commonwealth Seniors Health Card (CSHC) eligibility.
Worked example
Example: A single homeowner with $400,000 in assessable assets ($300,000 financial, $100,000 contents/car) and no earned income. Assumed income from savings and investments on $300k is ~$212/fn (under the $226 free area, so full pension under Income Test). Under the Assets Test, assets exceed the $333,000 free area by $67,000, reducing the pension by $201/fn. The Assets Test is binding, paying an estimated ~$999.90/fn (~$26,000/year), with full Pensioner Concession Card eligibility.
Limits
- Does not account for special crisis payments, overseas pension social security agreements, or gifting / deprivation rules within the 5-year lookback period.
- Subject to Services Australia indexation adjustments in March and September each year.
Sources
- Services Australia Age Pension eligibility and rates
- Services Australia Assets Test for Age Pension
- Services Australia Income Test and Deeming rules
This tool provides general information and illustrative estimates only. It does not consider your objectives, financial situation or needs and is not personal financial, tax or legal advice.