Age Pension Increases from 20 March 2026: What It Means for You
From 20 March 2026, Age Pension recipients will receive a modest increase in their fortnightly payments. Alongside this, the income and asset thresholds used to assess eligibility will also rise.
Updated Pension Rates
The maximum Age Pension will increase as follows:
Single pensioners: up by $22.20 to $1,200.90 per fortnight (previously $1,178.70)
Couples (combined): up by $33.40 to $1,810.40 per fortnight (or $905.20 each), from $1,777.00 combined
These figures represent the maximum entitlement. The actual Age Pension payable will depend on individual circumstances and the outcome of the means tests.
How Means Testing Applies
Age Pension eligibility continues to be determined by both the income test and the assets test. As pension rates increase, the cut-off thresholds for these tests have also been adjusted.
Income Test
From 20 March 2026, the income thresholds at which Age Pension entitlement reduces to nil are:
Single: $2,619.80 per fortnight
Couple (combined): $4,000.90 per fortnight
Assets Test
The asset thresholds at which Age Pension eligibility ceases are as follows:
Homeowners:
Single: $722,000 (increase of $7,500)
Couple (combined): $1,085,000 (increase of $11,000)
Non-homeowners:
Single: $980,000 (increase of $7,500)
Couple (combined): $1,343,000 (increase of $11,000)
These thresholds represent the maximum level of assessable assets before Age Pension entitlement reduces to nil.
Deeming Rates Also Increasing
While the increase in pension rates is positive, it is important to note changes to deeming rates, which are used to calculate income from financial assets.
From 20 March 2026:
The lower deeming rate will increase to 1.25% (from 0.75%)
The upper deeming rate will increase to 3.25% (from 2.75%)
Higher deeming rates may result in more income being assessed, which could reduce pension entitlements for some individuals.
What This Means for You
Although the Age Pension increase provides additional support, the overall impact will vary depending on your financial position. Changes to thresholds and deeming rates may offset some of the benefits, making it important to review your circumstances regularly.
If you would like to understand how these changes may affect your strategy or entitlements, we recommend seeking tailored advice.
Source: SuperCentral
For further information or to book an appointment, please contact ODV Private Wealth on (08) 8352 2522 or email planning@odvwealth.com.au.
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