Key takeaways
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If you’re an Australian resident and able to access the full Age Pension, you can receive up to $1,096.70 per fortnight for singles and $1,653.40 for couples (each)
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If you are working, you can earn up to $204 per fortnight for a single pensioner or $360 for a couple, and still receive the full Age Pension
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The Age Pension rates changed on 20 September 2023.
When you retire, you may be able to access government benefits like the Age Pension. This essentially provides you with back-up 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.
What makes you eligible for the Age Pension?
Generally, to be eligible for the Age Pension, you must be 67 or older—depending on when you were born—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.
The super transfer limit has increased
Until 1 July this year, the maximum amount you could move from super into tax-free retirement super income streams, such as Account-Based-Pensions and Annuities, was $1.7 million (called the ‘transfer balance cap’). Because of indexation, that has now been increased to $1.9 million.
If you had a tax-free retirement pension before 1 July 2023, your cap may only be partially increased and the ATO will calculate your personal transfer balance cap. If you think you may be impacted, speak with the ATO or your accountant. You can also check your personal transfer balance cap via your myGov account.
Age Requirements for Age Pension
From 1 July 2023, the qualifying age for Age Pension is 67. This applies to those born on or after 1 January 1957. If you were born prior to this date, you have already reached your age pension age as it was less than 67.
Residence requirements
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.
Age Pension rates for a single person
|
|
Amount |
|
Maximum base rate |
$1002.50 |
|
Maximum pension supplement |
$80.10 |
|
Energy supplement |
$14.10 |
|
Total (per fortnight) |
$1,096.70 |
|
Total (per year)* |
$28,514 |
Age Pension rates for a couple (living together)
|
|
Amount (each) |
Amount (combined) |
|
Maximum base rate |
$755.70 |
$1,511.40 |
|
Maximum pension supplement |
$60.40 |
$120.80 |
|
Energy supplement |
$10.60 |
$21.20 |
|
Total (per fortnight) |
$826.70 |
$1,653.40 |
|
Total (per year)* |
$21,494 |
$42,988 |
Source: Services Australia. Applicable 20 September 2023
*Annual amounts are approximate
Can I earn extra income without losing pension benefits?
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.
To receive the part Age Pension as a single pensioner, you can earn up to $2,332 (up to $3,568 for couples) per fortnight.
The Work Bonus
On top of your income, the Work Bonus allows you to earn up to an additional $300 per fortnight before your pension payments are affected.
Any portion of the $300 that is not used, accumulates into a Work Bonus Income Bank which you can use in the future. The maximum amount you can accumulate in your Work Bonus Income Bank is $7,800. Once you exceed this, you won’t be able to receive anymore.
Note: from 1 December 2022 until 31 December 2023, the Work Bonus balance increased by $4,000 to $11,800. It will then revert back to $7,800 from 1 January 2024.
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 is receiving the pension and works as a casual nurse, earning $350 a fortnight. She has no income other than the pension.
Based on the $204 income limit, she has exceeded this amount by $146 per fortnight. However, the remaining $146 will go under the Work Bonus of $300. As she’s not exceeding the limit, Julie will still receive the maximum pension rate.
When is the next Age Pension increase?
The Age Pension rates will potentially change on 20 September 2023.
Increases are likely but not certain because the Australian Bureau of Statistics evaluates these increases based a variety of different factors.
How often is the Age Pension paid?
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.
Financial wellbeing in retirement
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 expert 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, speak to us to see how we can help you.
*For more information, visit https://www.mlc.com.au/personal/retirement/super-and-retirement-rules/what-is-mlc-masterkey-investment-protection
Important information and disclaimer
This article has been prepared by NULIS Nominees (Australia) Limited ABN 80 008 515 633 AFSL 236465 (NULIS) as trustee of the MLC Super Fund ABN 70 732 426 024. The information in this article is current as at June 2021 but may cease to be accurate in the future.
NULIS is part of the group of companies comprising IOOF Holdings Ltd ABN 49 100 103 722 and its related bodies corporate (IOOF Group).
Opinions constitute our judgement at the time of preparation. In some cases information has been provided to us by third parties and while that information is believed to be accurate and reliable, its accuracy is not guaranteed in any way.
To the extent that the information in this article is or contains advice, it does not take into account any particular person’s objectives, financial situation or needs. Before acting on the information, you should consider the relevant Product Disclosure Statement, consider the product’s appropriateness to you having regard to your personal objectives, financial situation and needs, and consider obtaining independent advice. The Product Disclosure Statement for the MLC Super Fund is available at https://www.mlc.com.au/personal/superannuation/products or can be obtained by calling 132 652 (Monday to Friday between 8am and 6pm AEST/AEDT). Returns are not guaranteed and past performance is not a reliable indicator of future performance. The value of an investment may rise or fall with the changes in the market. You should not rely on this article to determine your personal tax obligations. Please consult a registered tax agent for this purpose. Subject to terms implied by law and which cannot be excluded, neither NULIS nor any member of the IOOF Group accepts responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in the information in this communication.
