The Australian government has announced updates to the Centrelink Age Pension for 2026, with changes taking effect from March 20, 2026. These adjustments include higher maximum payment rates due to regular indexation, along with increases to income and asset test cut-off limits. The changes aim to help pensioners keep up with living costs and affect over 2.5 million recipients.
This twice-yearly indexation uses a combination of the Consumer Price Index (CPI), Pensioner and Beneficiary Living Cost Index, and average weekly earnings to determine the increases. The latest update brings modest boosts to payments and thresholds.
New Maximum Payment Rates
From March 20, 2026, the maximum Age Pension rates have risen. Single pensioners now get an extra $22.20 per fortnight, while couples see an increase of $16.70 per partner.
- Single: $1,200.90 per fortnight (up from $1,178.70).
- Couple (each): $905.20 per fortnight (up from $888.50).
- Couple combined: $1,810.40 per fortnight.
These amounts include the basic rate plus supplements like the Pension Supplement and Energy Supplement. Full pensioners receive the entire increase in their regular payments starting from that date.
Income Test Changes and Eligibility Limits
The income test determines how much pension you get if you have other earnings. The free area (amount you can earn without reduction) and cut-off points have increased slightly.
The income free area stays at levels that allow small amounts without impact:
- Singles: Up to $218 per fortnight without reduction.
- Couples: Up to $380 combined per fortnight without reduction.
Beyond these, the pension reduces by 50 cents per dollar over for singles and 25 cents per dollar each for couples.
The cut-off points (where pension drops to zero) have risen:
- Single: $2,619.80 per fortnight (increase of $44.40).
- Couple combined: $4,000.80 per fortnight (increase of $66.80).
These higher limits mean some people with part-time work or other income may now qualify for more or stay eligible longer.
Asset Test Changes and Eligibility Limits
The assets test looks at savings, investments, and property (excluding your main home for most homeowners). Thresholds for full and part pensions have gone up.
Full pension asset limits (no reduction):
- Single homeowner: Around $321,500.
- Couple homeowners combined: Around $481,500.
(Non-homeowners have higher limits.)
Part pension cut-off points (where eligibility ends):
- Single homeowner: $722,000 (increase of $7,500).
- Couple homeowners combined: $1,085,000 (increase of $11,000).
For every $1,000 over the full pension threshold, the pension reduces by $3 per fortnight for singles or $1.50 each for couples.
Deeming rates (used to calculate deemed income from financial assets) have also increased slightly, which can affect part-pensioners with savings:
- Lower rate now 1.25% on the first $64,200 (single) or $106,200 (couple).
- Higher rate 3.25% on amounts above.
This change might reduce payments for some with larger financial assets, even as base rates rise.
Who Will Benefit Most?
Full pensioners get the straightforward payment boost. Part-pensioners may see mixed results—the higher thresholds help those near the edges, but deeming changes could offset some gains.
- If your assets are modest, the indexation boost likely helps.
- If you have significant savings, check your new rate as deeming impacts more.
Services Australia automatically adjusts most payments, so eligible people don’t need to reapply.
The Centrelink Age Pension increase for 2026 provides welcome support for retirees facing higher costs. With payments up to $1,200.90 fortnightly for singles and expanded eligibility limits, many will feel a real difference from March 20 onward. These regular updates help maintain the pension’s value over time. If your situation has changed, it’s worth reviewing your details on myGov to see the exact impact.
FAQs
When do the new Age Pension rates start?
The changes begin March 20, 2026, and apply to payments from that date.
How much extra will a single full pensioner get?
An extra $22.20 per fortnight, bringing the maximum to $1,200.90.
Do I need to contact Centrelink for the increase?
No, Services Australia adjusts payments automatically for most recipients.
Will part-pensioners always get more?
Not always—the payment boost helps, but higher deeming rates may reduce amounts for those with more financial assets.
What is the new asset cut-off for a single homeowner on part pension?
$722,000, up by $7,500 from the previous limit.
Are deeming rates changing too?
Yes, they rise to 1.25% on the first threshold amount and 3.25% above, which affects how savings count toward the income test.