GLOSSARY
Age Pension and super glossary: every term explained in plain English
Centrelink and super both come with their own language. Here’s what the terms actually mean, with a link through to the full guide wherever there’s more to know.
OFFICIAL RULES CHECKED 22 AUGUST 2026
Age Pension terms.
| Term | What it means |
|---|---|
| Income test | One of two tests Centrelink uses to set your pension — based on your assessable income, including deemed income from financial assets. |
| Assets test | The other test — based on the value of what you own outside your home. Centrelink pays whichever test leaves you with less. |
| Deeming | Centrelink assumes your financial assets earn a set rate of income, regardless of what they actually earn. See our Age Pension guide for current deeming rates. |
| Taper rate | How much your pension reduces for every dollar over a test’s free area or threshold — it reduces gradually, not all at once. |
| Work Bonus | An amount of employment income excluded from the income test each fortnight, with unused amounts carried forward. See our Work Bonus guide. |
| Commonwealth Seniors Health Card (CSHC) | A concession card with no assets test, for people over Age Pension age who don’t qualify for a pension. See our CSHC guide. |
| Home Equity Access Scheme (HEAS) | A government loan against home equity that tops up your income without selling. See our HEAS guide. |
Super terms.
| Term | What it means |
|---|---|
| Preservation age | The earliest age you can generally access super — now 60 for everyone. |
| Total Super Balance (TSB) | Your combined super balance across all funds as at 30 June — used to test eligibility for carry-forward contributions and the bring-forward rule. |
| Concessional contributions | Before-tax contributions — employer, salary sacrifice and deductible personal contributions — taxed at 15% going in. See our contribution caps guide. |
| Non-concessional contributions | After-tax contributions, not taxed again going into super, subject to their own annual cap. |
| Transfer balance cap | The lifetime limit on how much you can move into tax-free retirement-phase pension accounts — $2,000,000 from 1 July 2025. |
| Minimum drawdown rate | The minimum percentage of your account-based pension you must withdraw each year, based on your age. |
| Downsizer contribution | A one-off super contribution of up to $300,000 per person from the sale of your home, outside the normal caps. See our downsizer guide. |
| Transition to Retirement (TTR/TRIS) | An income stream from super available from age 60, while still working. See our TTR guide. |
| Division 293 tax | An extra 15% tax on concessional contributions for people earning above $250,000 combined income and low-tax contributions. |
Frequently asked questions.
Is the Age Pension the same as superannuation?
No. The Age Pension is a government income support payment from Services Australia. Superannuation is your own retirement savings, generally accessed once you meet preservation age and a condition of release.
Why do figures change every year?
Most Age Pension and super thresholds are indexed — reviewed on set dates (commonly 1 July, 20 March or 20 September) in line with inflation or wage growth measures.
Where do these definitions come from?
Primarily the ATO and Services Australia. We link to the official source on every guide so you can verify the current figure yourself.
Apply this to your own plan.
Pension Pilot’s calculator brings all of these terms together into one report — your Age Pension entitlement, your super projections, and the concessions and schemes you qualify for. These figures are educational and should be checked against official sources before you rely on them.