The Centrelink Age Pension payments will increase in March 2026. Higher payments will be made each fortnight, and the income and asset limits will also rise, allowing many older Australians to receive larger and more secure pensions. Understanding the new payments and updated eligibility limits is important before the changes take effect.
What is New in March 2026?
Starting mid-March 2026, Age Pension payments will increase as part of the government’s regular indexation process to help keep payments aligned with rising living costs.
Single pensioners will see an increase of approximately $22.20, bringing their total payment to around $1,200.90 per fortnight. Each member of a couple will receive about $905.20 per fortnight after an increase of roughly $16.70.
These changes will affect more than 2.5 million older Australians. Some recipients receive part-rate pensions, meaning their final payment depends on both the income test and assets test.
While the core rules of the Age Pension remain unchanged — including age, residency, income and asset requirements — adjustments to the threshold figures may allow some people who were previously just over the limit to qualify for a partial pension.
New Income Test Thresholds
The income test considers income from employment, investments, and superannuation income streams. Once income rises above the free area, the pension payment gradually reduces.
From 20 March 2026, updated thresholds will allow retirees to earn more income while still receiving Age Pension support.
Singles: Approximately $3,020.80 per fortnight
Couples: Around $4,000.80 combined per fortnight
After the temporary freeze ends, the deeming rates used by Centrelink to estimate investment returns will also apply again.
Balances below the lower threshold deemed at about 1.25%
Balances above the threshold deemed at about 3.25%
This system estimates income from savings, term deposits, and some superannuation accounts regardless of the actual interest earned.
Because of these updates, retirees who undertake casual work or keep funds in conservative investments may benefit from more accurate income assessments.
Changes to the Asset Thresholds 2026
Centrelink also applies an assets test that includes the value of most assets such as savings, investments, and property, excluding the family home in most cases.
Under the updated rules, asset thresholds will increase in 2026. This means retirees can hold more assets before their Age Pension is reduced or cut off.
Single homeowner: Up to about $722,000 in assets
Couple homeowners: Around $1,085,000 combined
Single non-homeowner: Around $980,000
Couple non-homeowners: Around $1,343,000 combined
Age Pension Changes in 2026
Category
Singles (Homeowner)
Couples (Homeowner)
Singles (Non-homeowner)
Couples (Non-homeowner)
Max fortnightly payment
$1,200.90
$905.20 each
$1,200.90
$905.20 each
Income cut-off
$3,020.80
$4,000.80 combined
$3,020.80
$4,000.80 combined
Asset cut-off
$722,000
$1,085,000 combined
$980,000
$1,343,000 combined
These figures are estimates and should be used for general guidance only. Official payment rates and thresholds may vary depending on individual circumstances.
Core Eligibility Rules Remain the Same
The qualifying age for the Age Pension is currently 67 years. Applicants must also meet residency rules, which generally require living in Australia for at least 10 years, including five years continuously.
Eligibility also depends on meeting the updated income and asset limits. The final pension rate is determined by whichever test results in the lower payment.
Many retirees combine the Age Pension with superannuation withdrawals, savings, or part-time work. Staying informed about indexation changes like the March 2026 increases can help retirees manage their budgets more effectively as living costs rise.
FAQs
Q1 When do the new Age Pension rates come into effect?
The updated payment rates will apply from 20 March 2026 as part of the regular indexation process.
Q2 Do I need to reapply to receive the increase?
No. Existing Age Pension recipients will automatically receive the increased payments. New applicants must still submit a claim and provide required documentation.
Q3 Where can I check my eligibility?
You can check your eligibility using the online Age Pension estimator or by contacting a Services Australia Financial Information Service officer for guidance.
