We look at what the current Age Pension rates are, how much extra income you could earn without losing benefits, and how often it’s paid.
The above rates are payable from 20 March 2024 and may be indexed in future.
You may be able to access government benefits like the Age Pension once you reach 67 which is age pension age. This essentially provides you with additional income if you don’t have enough retirement savings in your super or other investments.
The kind of pension and benefits you’re entitled to generally depends on your age, assets and income.
In this article, we look at what the current Age Pension rates are, how much extra income you could earn without losing these benefits, and how often it’s paid.
Generally, to be eligible for the Age Pension, you must be 67 or older, be an Australian resident and have lived in Australia for at least 10 years as well as meet the income and assets tests.
We explain these in more detail below.
To qualify for the Age Pension, you must be an Australian resident (that is, living in Australia on a permanent basis) and have lived in the country for at least 10 years.
You must also have lived in Australia for at least 5 years consecutively, and you’ll need to be in the country on the day you apply for the pension.
If you’re not an Australian resident, there are some circumstances in which you could be eligible for the Age Pension.
Special rules apply to residences in countries with which Australia has an International Social Security Agreement. Residence in these countries may count towards the minimum 10-year residence requirement.
| Amount |
|---|---|
| Maximum base rate | $1,020.60 |
| Maximum pension supplement | $81.60 |
| Energy supplement | $14.10 |
| Total (per fortnight) | $1,116.30 |
| Total (per year)^ | $29,023.80 |
| Amount (each) | Amount (combined) |
|---|---|---|
| Maximum base rate | $769.30 | $1,538.60 |
| Maximum pension supplement | $61.50 | $123.00 |
| Energy supplement | $10.60 | $21.20 |
| Total (per fortnight) | $841.40 | $1,682.80 |
| Total (per year)^ | $21,876.40 | $43,752.80 |
Source: Services Australia. Applicable 20 March 2024 to 19 September 2024
^Annual amounts are approximate
Yes, the Government is enabling people on the Age Pension to earn extra income without losing their pension benefits.
To receive the full Age Pension as a single pensioner, you can earn up to $204 per fortnight. A couple can earn up to $360 per fortnight, combined, before it affects pension payments. This is known as the ‘income free amount’.
To receive the part Age Pension as a single pensioner, you can earn up to $2,436.60 (up to $3,725.60 for couples) per fortnight.
On top of your income, the Work Bonus allows you to earn an additional income per fortnight from employment or self-employment before your pension payments are affected.
This means the first $300 of income you earn from paid work each fortnight is ignored when determining your Age Pension under the income test. This is on top of the income free amount.
Any portion of the $300 that is not used, accumulates into a Work Bonus Income Bank which you can use in the future.
However, since 1 January 2024, people who start to receive the Age Pension for the first time are eligible for an upfront deposit into their Work Bonus income bank of $4,000, in addition to the fortnightly $300 Work Bonus amount. A similar credit for existing Age Pensioners applied between 1 December 2022 and 31 December
The combination of the additional $4,000 credit as well as any fortnightly unused portion of the $300 Work Bonus allows a maximum of $11,800 to be accumulated in your Work Bonus Income Bank. Once you exceed this, you won’t be able to receive anymore. Your Work Bonus balance begins accumulating from the day you become eligible for Age Pension payments, even if you’re not working.
Case study example
Julie has just commenced receiving the age pension and works as a casual nurse, earning $350 a fortnight. She has no income other than the pension.
Her employment income is first reduced by the fortnightly work bonus of $300. As Julie has just commenced receiving the age pension, she has the $4,000 credit in her Work Bonus income bank. The remaining $50 will reduce her income bank by this amount. This means that there is no impact to Julie’s age pension based on her employment income.
Assuming Julie continues to receive $350 a fortnight, her income bank would not reduce to zero for 80 fortnights. During this time, her employment income would be reduced to zero for age pension purposes.
Further examples of the work bonus calculation can be viewed on the Australian Government’s Social Security Guide at guides.dss.gov.au/social-security-guide/3/1/15/40
Generally, the Age Pension rates are reviewed on 20 March and 20 September each year.
Increases are likely but not certain because the Australian Bureau of Statistics evaluates these increases based a variety of different factors.
The payments are made fortnightly for most people with some exceptions.
If you’re having issues managing your money, or are at risk of becoming homeless, you can apply to receive your payments weekly.
If you’re eligible for the Age Pension and approaching retirement age, you don’t necessarily have to spend all your super before you’re eligible for pension payments.
If you’d like some help assessing your eligibility for benefits, and strategies to improve your retirement savings, a financial adviser may help set you on the right track
Their job is to help you with every aspect of your financial life, while keeping you on track to achieve your goals. Start the conversation to see how a financial adviser can help you.
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