What income counts for the Age Pension income test?

Employment income, deemed income, passive income, partner income and some other assessable payments may matter. The exact treatment needs official checking.

Is deemed income the same as actual interest?

No. Deemed income is an assessment method for financial assets and can differ from the interest or distributions actually received.

Does Work Bonus apply to all income?

No. Work Bonus treatment relates to work income, not all income types in the Age Pension income test.

Can partner income reduce my pension?

Yes. Couple assessment and timing can affect the household estimate, especially where one partner is still working or not yet Age Pension age.

Why do income-test calculators differ?

They may use different source dates, rounding, deeming treatment, Work Bonus assumptions or simplified handling of complex income types.

How does an income test calculator help?

It helps you estimate whether income, including deemed income, is likely to reduce the Age Pension result.

What income types should I enter carefully?

Work income, investment income, pensions and any income that may be treated differently under the rules.

Should I still check the assets test?

Yes. The lower of the income-test and assets-test outcomes usually matters.

Australian retirement guide

Age Pension income test calculator guide

Understand work income, passive income, deeming and why the income test can reduce pension estimates.

Start with expenses

What the income test checks

The income test looks at assessable income such as employment income, some pension income, deemed income from financial assets and other regular income.

Deeming can surprise people

Bank savings, shares and other financial assets may be deemed to earn income even if the actual income is different.

Work after pension age

Employment income after Age Pension age can interact with Work Bonus rules. It is worth modelling carefully rather than guessing.

Why both tests matter

Age Pension is affected by both assets and income tests. The test that produces the lower pension amount usually matters most.

Age Pension income test limits (from 1 July 2026)

Situation	Full pension income limit (per fortnight)	Part pension cuts off (per fortnight)
Single	$226	$2,627.80
Couple (combined)	$396	$4,016.80
Couple (illness-separated, combined)	$396	$5,199.60

Above the free area, the pension reduces by 50 cents for every dollar of assessable income. Working pensioners can also earn up to $300 a fortnight (up to $11,800 a year) under the Work Bonus before it counts as income. These figures are effective from 1 July 2026 and are reviewed three times a year, so recheck before relying on them. See the assets test calculator guide for the matching asset thresholds, or start from the Age Pension income test overview.

How Pension Pilot helps

Pension Pilot turns spending, super, retirement timing and Age Pension assumptions into a plain-English educational report. It is designed to help you get organised before checking official rules or speaking with a qualified adviser.

Continue the retirement check Read the Age Pension guide

Common questions

Is rental income counted?

Rental income can be assessable, with specific treatment depending on the situation.

Is super drawdown income counted?

Account-based pension and super drawdown treatment can be complex and should be checked against current rules.

This page is general educational information for Australians and is not personal financial advice. Rules and thresholds can change, so confirm important decisions with official sources or a qualified adviser.