Estimate your potential fortnightly payment based on income and asset tests.
Single
Couple (Combined)
Homeowner
Non-Homeowner
Include wages, super, investments.
Savings, cars, caravans, shares (exclude principal home).
Estimated Fortnightly Payment
$0.00
Understanding the Age Pension Rate
The Age Pension is designed to support the basic living standards of older people. Unlike a standard loan or mortgage calculator, calculating your pension involves two separate "means tests": the Income Test and the Assets Test. The test that results in the lower pension rate is the one that applies to you.
1. The Income Test
Your income from all sources is assessed to determine how much pension you can receive. This includes financial investments (using deeming rates), wages, and superannuation income streams.
Free Area: You can earn up to a certain amount per fortnight before your pension is reduced.
Taper Rate: For every dollar you earn over the threshold, your pension reduces by 50 cents (for singles) or 50 cents combined (for couples).
2. The Assets Test
This test looks at the value of the assets you own, excluding your principal family home. Assets include savings, cars, caravans, investment properties, and household contents.
Thresholds: Homeowners have a lower asset threshold than non-homeowners because the home is exempt.
Taper Rate: For every $1,000 of assets over the threshold, the pension reduces by $3.00 per fortnight.
Current Maximum Basic Rates (Estimates)
Status
Max Fortnightly Rate*
Single
$1,096.70
Couple (Each)
$826.70
*Rates include Pension Supplement and Energy Supplement. These figures are approximations used for this calculation tool. Always verify with official government services for exact entitlements.
Strategies to Maximize Pension
Understanding which test affects you (Assets vs. Income) is crucial. Some retirees choose to invest in exempt assets (like the principal home or specific funeral bonds) to lower their assessable assets. Others may manage income streams to stay within the "free area" threshold.
function calculatePension() {
// 1. Define Constants (Based on approximate 2024 figures)
var maxRateSingle = 1096.70;
var maxRateCouplePerPerson = 826.70;
// Income Thresholds (Fortnightly)
var incomeFreeAreaSingle = 204.00;
var incomeFreeAreaCouple = 360.00;
// Asset Thresholds (Total Value)
var assetLimitSingleHome = 301750;
var assetLimitSingleNonHome = 543750;
var assetLimitCoupleHome = 451500;
var assetLimitCoupleNonHome = 693500;
// Taper Rates
var incomeTaper = 0.50; // 50 cents per dollar over threshold
var assetTaper = 3.00; // $3.00 per $1000 over threshold
// 2. Get Input Values
var status = document.getElementById('pensionStatus').value;
var homeowner = document.getElementById('homeownerStatus').value;
var incomeInput = document.getElementById('fortnightlyIncome').value;
var assetsInput = document.getElementById('totalAssets').value;
// Validate and Parse Numbers
var income = parseFloat(incomeInput);
if (isNaN(income)) income = 0;
var assets = parseFloat(assetsInput);
if (isNaN(assets)) assets = 0;
// 3. Determine specific thresholds based on Status and Homeowner
var maxRate, incomeThreshold, assetThreshold;
if (status === 'single') {
maxRate = maxRateSingle;
incomeThreshold = incomeFreeAreaSingle;
if (homeowner === 'yes') {
assetThreshold = assetLimitSingleHome;
} else {
assetThreshold = assetLimitSingleNonHome;
}
} else {
// Couple logic
maxRate = maxRateCouplePerPerson; // We calculate payment PER PERSON
incomeThreshold = incomeFreeAreaCouple; // This is the combined threshold
if (homeowner === 'yes') {
assetThreshold = assetLimitCoupleHome;
} else {
assetThreshold = assetLimitCoupleNonHome;
}
}
// 4. Calculate Income Test Reduction
var incomeReduction = 0;
if (income > incomeThreshold) {
incomeReduction = (income – incomeThreshold) * incomeTaper;
// For couples, the reduction is usually shared or calculated on combined,
// effectively reducing the combined payment.
// If we calculate per person, we halve the reduction for couples?
// Standard AU logic: The combined income reduces the combined max rate.
// So if reduction is $100, each person loses $50.
if (status === 'couple') {
incomeReduction = incomeReduction / 2;
}
}
// 5. Calculate Assets Test Reduction
var assetReduction = 0;
if (assets > assetThreshold) {
// Reduction is calculated per $1000 (rounded down)
var excessAssets = assets – assetThreshold;
var blocksOf1000 = Math.floor(excessAssets / 1000);
assetReduction = blocksOf1000 * assetTaper;
// Similar to income, if couple, the asset reduction applies to the household entitlement.
// Therefore, split the reduction per person.
if (status === 'couple') {
assetReduction = assetReduction / 2;
}
}
// 6. Apply the severest test (The one that results in the lowest pension)
var appliedReduction = Math.max(incomeReduction, assetReduction);
// 7. Calculate Final Pension
var finalPension = maxRate – appliedReduction;
// Ensure pension doesn't drop below zero
if (finalPension assetReduction) {
testType = "Reduced by Income Test";
} else {
testType = "Reduced by Assets Test";
}
if (finalPension === 0) {
testType = "Not eligible (Assets or Income too high)";
}
// 9. Display Result
var resultElement = document.getElementById('pensionResult');
var container = document.getElementById('resultContainer');
var noteElement = document.getElementById('testResultNote');
container.style.display = 'block';
resultElement.innerText = "$" + finalPension.toFixed(2);
if (status === 'couple') {
noteElement.innerText = testType + " (Per Person)";
} else {
noteElement.innerText = testType;
}
}