Employment income + deemed income from financial assets.
Please enter valid numerical values for assets and income.
Estimated Fortnightly Payment
Max Basic Rate (plus supplements):$0.00
Reduction due to Assets Test:-$0.00
Reduction due to Income Test:-$0.00
Applied Test:–
Your Estimated Pension:$0.00
*Figures are estimates based on standard 2024/2025 thresholds. Actual assessment by Centrelink may vary.
function calculatePension() {
// 1. Get Inputs
var status = document.getElementById('relStatus').value;
var homeStatus = document.getElementById('homeStatus').value;
var assetsInput = document.getElementById('assessableAssets').value;
var incomeInput = document.getElementById('fortnightlyIncome').value;
var errorDiv = document.getElementById('errorMsg');
var resultDiv = document.getElementById('pensionResult');
// 2. Validate Inputs
if (assetsInput === "" || incomeInput === "" || isNaN(assetsInput) || isNaN(incomeInput)) {
errorDiv.style.display = 'block';
resultDiv.style.display = 'none';
return;
}
errorDiv.style.display = 'none';
var assets = parseFloat(assetsInput);
var income = parseFloat(incomeInput);
// 3. Define Constants (Approximate 2024/2025 Rates)
// Max Pension (Base + Supplement + Energy Supplement)
var maxPensionSingle = 1116.30;
var maxPensionCoupleCombined = 1682.80;
// Income Test Thresholds (Fortnightly)
var incomeThresholdSingle = 212.00;
var incomeThresholdCouple = 372.00;
var incomeReductionRate = 0.50; // 50 cents per dollar
// Asset Test Thresholds
var assetLimitSingleHomeowner = 314000;
var assetLimitSingleNonHomeowner = 566000;
var assetLimitCoupleHomeowner = 470000;
var assetLimitCoupleNonHomeowner = 722000;
var assetTaperRate = 3.00; // $3 reduction per $1000 assets
// 4. Determine Specific Thresholds based on selection
var currentMaxPension = 0;
var currentAssetLimit = 0;
var currentIncomeLimit = 0;
if (status === 'single') {
currentMaxPension = maxPensionSingle;
currentIncomeLimit = incomeThresholdSingle;
if (homeStatus === 'homeowner') {
currentAssetLimit = assetLimitSingleHomeowner;
} else {
currentAssetLimit = assetLimitSingleNonHomeowner;
}
} else {
// Couple
currentMaxPension = maxPensionCoupleCombined;
currentIncomeLimit = incomeThresholdCouple;
if (homeStatus === 'homeowner') {
currentAssetLimit = assetLimitCoupleHomeowner;
} else {
currentAssetLimit = assetLimitCoupleNonHomeowner;
}
}
// 5. Calculate Income Test Reduction
var incomeReduction = 0;
if (income > currentIncomeLimit) {
incomeReduction = (income – currentIncomeLimit) * incomeReductionRate;
}
// 6. Calculate Assets Test Reduction
var assetReduction = 0;
if (assets > currentAssetLimit) {
// Reduction is $3.00 for every $1,000 (or part thereof) above limit
// Centrelink rounds up the excess to nearest 1000 usually, but standard simple calc:
var excessAssets = assets – currentAssetLimit;
var perThousand = Math.ceil(excessAssets / 1000); // Usually rounded up
assetReduction = perThousand * assetTaperRate;
}
// 7. Calculate Resulting Pension for both tests
// Pension cannot be less than 0
var pensionByIncome = Math.max(0, currentMaxPension – incomeReduction);
var pensionByAssets = Math.max(0, currentMaxPension – assetReduction);
// The lower amount applies
var finalPension = Math.min(pensionByIncome, pensionByAssets);
// Identify which test applied
var appliedTest = "";
if (pensionByIncome < pensionByAssets) {
appliedTest = "Income Test (Lower Result)";
} else if (pensionByAssets < pensionByIncome) {
appliedTest = "Assets Test (Lower Result)";
} else {
appliedTest = "Both Tests (Equal or Full Pension)";
}
// 8. Update DOM
document.getElementById('maxRateDisplay').innerHTML = "$" + currentMaxPension.toFixed(2);
document.getElementById('assetReductionDisplay').innerHTML = "-$" + assetReduction.toFixed(2);
document.getElementById('incomeReductionDisplay').innerHTML = "-$" + incomeReduction.toFixed(2);
document.getElementById('appliedTestDisplay').innerHTML = appliedTest;
document.getElementById('finalPensionDisplay').innerHTML = "$" + finalPension.toFixed(2);
resultDiv.style.display = 'block';
}
Understanding Australian Age Pension Rates
The Australian Age Pension is a safety net designed to support older Australians who have limited financial resources. Unlike universal pension schemes in some other countries, the Australian system is strictly means-tested. This calculator helps you estimate your fortnightly payment based on the two main tests: the Income Test and the Assets Test.
1. The Means Testing System
Centrelink assesses your financial situation using both the Income Test and the Assets Test. They calculate your potential payment under both tests, and the test that results in the lowest pension amount is the one that applies to you.
Assets Test: This assesses the value of your physical and financial assets. This includes superannuation, investment properties, caravans, cars, and household contents. Crucially, your principal family home is exempt from this test.
Income Test: This assesses your gross income from all sources, including wages, rental income, and specific "deemed" income from financial investments.
2. Homeowners vs. Non-Homeowners
Your home ownership status significantly affects your Assets Test threshold. Since the principal home is exempt, homeowners have a lower asset threshold (the amount of assets you can own before your pension is reduced) compared to non-homeowners. Non-homeowners are granted a higher asset limit to account for the fact that they do not have the security of an owned home.
3. Current Taper Rates
If your income or assets exceed the "free areas" (thresholds), your pension is reduced gradually. As of current regulations:
Income Taper: For every $1.00 your income exceeds the threshold, your pension reduces by 50 cents.
Asset Taper: For every $1,000 of assets above the threshold, your pension reduces by $3.00 per fortnight.
4. What Counts as Income?
It is important to note that Centrelink uses "Deeming Rules" for financial assets (like savings accounts, shares, and managed funds). Instead of using the actual interest or dividends you earn, they assume these assets earn a set rate of return. This deemed income is what is included in the Income Test, regardless of what your investments actually earn.
5. Eligibility Criteria
To qualify for the Age Pension, you generally need to be:
Age 67 or older (depending on your birth date).
An Australian resident and currently living in Australia.
Under the income and asset limits calculated above.
Disclaimer: This calculator provides an estimate based on general figures. Pension rates, thresholds, and deeming rates change regularly (typically in March and September). For an official assessment, please contact Services Australia or a qualified financial advisor.