GLOSSARY
Age Pension and super glossary: retirement terms explained
Use this glossary to understand common Australian retirement terms, from Age Pension means tests and deeming to super access, contribution caps and drawdowns. Follow the links for fuller explanations and check official sources for rules that apply to you.
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 | An assessment of assessable assets you and your partner own. Your principal home is generally exempt, but exceptions apply. For most pensioners, the lower result from the assets and income tests determines payment. |
| 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 for eligible people who have reached Age Pension age and are not receiving an income support payment. It has an income test but no assets test; residence and other rules apply. See our CSHC guide. |
| Home Equity Access Scheme (HEAS) | A government loan secured against eligible Australian real estate, available to eligible people to supplement retirement cash flow without selling. Interest and other conditions apply. See our HEAS guide. |
Super terms.
| Term | What it means |
|---|---|
| Preservation age | The age at which you may be able to access super. Meeting preservation age by itself does not give unrestricted access: a relevant condition of release still needs to be met. Check ATO early-access rules. |
| Total Super Balance (TSB) | A measure of your super interests at a particular date, usually 30 June for contribution eligibility tests. Special valuation rules and adjustments mean it can differ from summed account balances. Check the ATO-reported figure. |
| Concessional contributions | Employer, salary-sacrifice and deductible personal contributions are generally taxed at 15% in a taxed fund; extra tax and special-scheme rules can apply. 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 | A limit on the amount transferred into retirement-phase super income streams. Your personal cap may differ from the current general cap because of when you first started a retirement-phase income stream and how much cap space you previously used. Check your personal cap and transfer balance account in ATO online services before transferring more. Read the ATO guidance. |
| Minimum drawdown rate | The minimum payment required under the pension rules, based on age, balance and commencement timing. A full-year percentage may need first-year adjustment. |
| Downsizer contribution | Eligible contributions from the sale of one qualifying home, up to $300,000 per person and limited by the sale proceeds. They sit outside normal contribution caps; other conditions apply. 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?
These definitions draw on ATO and Services Australia guidance. Use the official links where provided and check current rules for your circumstances.
Apply this to your own plan.
Pension Pilot brings household inputs and retirement assumptions into an educational report. Use its estimates to identify questions for Services Australia, your super fund or a qualified adviser. The report does not determine your Age Pension entitlement or establish eligibility for concessions and government schemes.