Age Pension income test 2026
How much you can earn before Age Pension reduces, and how fast it tapers above the free area.
| Fortnightly income | Effect on your payment |
|---|---|
| Up to $226 | No reduction (this is the income free area) |
| $226 and above | Reduces by 50c for each dollar over $226 |
Source: Services Australia, A guide to Australian Government payments (CO029), 1 July 2026 edition — Income test for pensions; free areas from DSS Social Security Payment Parameters, 1 July 2026
For couples the 50-cent taper applies to combined income above the combined free area and reduces the combined pension.
| Situation | Payment reduces to nil at |
|---|---|
| Single | $2,627.80 /fortnight |
| Couple (combined) | $4,016.80 /fortnight |
| Couple (combined) — Illness separated | $5,199.60 /fortnight |
This payment's income test counts deemed income from your financial assets, not just the income you actually receive.
The income test has a fortnightly income free area. You can have income up to that amount and still get the full pension. Above the free area, your pension reduces by 50 cents for every extra dollar of income. For a couple, the combined income is tested and the reduction is shared between you.
Income from financial assets is worked out using deeming, not the actual return you receive. Your deemed income is added to any other income, such as wages or a private pension, to give your total assessable income.
Once your income is high enough, the pension reduces to zero. The exact cut-off point is shown in the income test table on this page.
More on Age Pension
- Age Pension overviewRate, tests and calculator
- Full rate tableEvery variant
- CalculatorEstimate your payment
- Assets testLimits and free areas
Estimates and general information only — not financial advice. Check Services Australia for your circumstances.
Rates current as of 20 March 2026. Source: DSS / Services Australia. Last checked 17 July 2026.