Latest News

.

Michael Hallinan, special counsel for SUPERCentral, said the deeming rate threshold from 1 July 2026 will be $66,800 for single age pensioners (previously $64,200) and $110,600 for coupled age pensioners (previously $106,200).

The income-free area per fortnight from 1 July 2026 will be $226 for single age pensioners (previously $218) and $396 for coupled age pensioners (previously $380).

“For individuals who are already receiving a full age pension, that is the age pension which has not been reduced by either the income or assets test, these changes will have no impact,” Hallinan said.

“For individuals who are receiving a part pension, that is the age pension has been reduced by either the income or assets test, these changes will have a beneficial impact. Assuming your assets and income have not increased, your age pension payments should increase.”

Hallinan continued that individuals who before 1 July 2026 had not qualified for a part age pension due to the income or asset means test may now be entitled to a small part age pension.

“While the age pension entitlement may not be significant, the entitlement to even $1 of age pension means that they will be entitled to the Centrelink pensioner concession card rather than the seniors health card,” he said.

“The potential entitlement albeit small part age pension of individuals who had been previously excluded from a part age pension occurs due to the increase in the income levels and asset levels at which entitlement to a part age pension ceases.”

From 1 July 2026, the relevant cut thresholds at which the entitlement to a part age pension ceases will increase to:

Income test

• $2,627.80 per fortnight – single (previously $2,619.80); and
• $4,016,80 per fortnight – couple combined (previously $4,000.80)

Assets test – homeowners

• $733,500 – single (previously $722,000)
• $1,102,500 – couple combined (previously $1,085,00)

  Assets test – non-homeowners

• $1,000,500 – single (previously $980,000)
• $1,369,500 – couple combined (previously $1,343,000).

From 1 July 2026, the asset test free area (amount of assets below which there is no reduction to age pension entitlement) will be:

Income test

• $226 per fortnight – single (previously $218); and
• $396 per fortnight – couple combined (previously $380).

Assets test – homeowners

• $333,000 – single (previously $321,500)
• $499,000 – couple combined (previously $481,500)

Assets test – non-homeowners

• $600,000 – single (previously $579,500)
• $766,000 – couple combined (previously $739,500).

“The above rates apply to resident age pension recipients who are not entitled to a transitional age pension,” Hallinan said.

Keeli Cambourne
July 24, 2026
smsfadviser.com