The Australian government has announced updates to the Centrelink Age Pension for 2026, with changes taking effect from March 20, 2026. These include higher maximum payment rates through indexation, along with increases to income and asset test cut-off limits. Deeming rates for financial assets are also rising. The adjustments affect over 2.5 million recipients and aim to provide support amid cost-of-living pressures.
Indexation occurs twice yearly—in March and September—using CPI, the Pensioner and Beneficiary Living Cost Index, and average weekly earnings. The March 2026 update delivers a modest increase, though some note it falls short of recent inflation levels.
New Maximum Payment Rates
From March 20, 2026, maximum Age Pension rates increase by $22.20 per fortnight for singles and $16.70 per person for couples.
- 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 totals include the basic rate plus the Pension Supplement and Energy Supplement. Full pensioners receive the entire increase automatically in their regular Centrelink payments starting from that date.
Income Test Changes and Eligibility Limits
The income test lets you earn a certain amount without reducing your pension. Free areas and cut-off points have risen slightly.
Key free areas (no reduction applies):
- Singles: Up to $218 per fortnight.
- Couples: Up to $380 combined per fortnight.
Above these, the pension reduces by 50 cents per dollar over for singles and 25 cents per dollar each for couples.
Cut-off points (where pension drops to zero) are now higher:
- Single: $2,619.80 per fortnight (up by $44.40).
- Couple combined: $4,000.80 per fortnight (up by $66.80).
These changes allow some with part-time work, investments, or other income to qualify for more pension or stay eligible longer.
Asset Test Changes and Eligibility Limits
The assets test reviews savings, super, investments, and non-home property (main home usually exempt for homeowners). Thresholds for full and part pensions increase modestly.
Full pension asset limits (no reduction, approximate):
- Single homeowner: Around $321,500.
- Couple homeowners combined: Around $481,500.
(Non-homeowners have higher thresholds.)
Part pension cut-offs (eligibility ends):
- Single homeowner: $722,000 (up by about $7,500).
- Couple homeowners combined: $1,085,000 (up by about $11,000).
Reductions above full-pension thresholds: $3 per fortnight per $1,000 over for singles, or $1.50 each for couples.
Deeming rates for financial assets increase from March 20, 2026:
- Lower rate: 1.25% on the first $64,200 (single) or $106,200 (couple combined).
- Higher rate: 3.25% on amounts above.
This can reduce payments for part-pensioners with larger financial assets, offsetting some of the base rate gain.
Who Will Benefit Most?
Full pensioners get a direct boost with no offsets. Part-pensioners see mixed results—higher thresholds help those near cut-offs, but deeming changes may lower amounts for those with significant savings.
- If assets are modest, the payment increase typically helps net.
- If financial assets are higher, deeming may reduce your rate—worth checking.
Services Australia automatically updates most payments, so no action is needed unless your details change.
The Centrelink Age Pension increase for 2026 offers meaningful support with maximum rates reaching $1,200.90 fortnightly for singles and broader eligibility limits. These regular indexation adjustments help retirees manage rising costs, though the deeming rise highlights the need to review savings impacts. Many will notice extra in their accounts from late March onward. Visit myGov or Services Australia to confirm your specific rate.
Last updated: 17 Mar 2026 (UK Time)
