Understanding the Age Pension
Everything you need to know about the Age Pension — written in plain English, with no legal jargon. Tap any section to read more.
Figures current as of March 2025. Pension rates, deeming rates, assets test thresholds, and income limits are updated by the Australian Government every March and September. Always verify current figures at Services Australia before making financial decisions. This guide is for general information only and does not constitute financial or legal advice.
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Deeming Rate Calculator
See how much income Centrelink assumes you earn from your savings
⚠️ Deeming Rate Alert — Late 2025 Change
The deeming rate freeze that protected seniors since 2020 ended in late 2025. The new rates are 0.25% on the first $62,600 (single) or $103,800 (couple) of financial assets, and 2.25% above that threshold. This change affects an estimated $1.8 billion in pension payments. If you are a part-pensioner, your payment may have been reduced.
Residency Rules for Migrants
Understanding the 10-year residency requirement and your rights
The Basic Rule
You must have lived in Australia for at least 10 years in total, with at least 5 of those years being continuous (without leaving Australia). Both periods must be as an Australian resident.
Overseas Trips — What Counts?
Brief overseas trips do not automatically break your residency. Services Australia considers your intent — whether you intended to return to Australia as your permanent home. Key factors include:
- Keeping your Australian home, bank accounts, and family connections
- The reason for the trip (caring for a dying relative is a strong mitigating factor)
- Whether you maintained Australian tax residency during the absence
⚠️ The Residency Trap — Real Case
In 2024, a 68-year-old migrant who had lived in Australia for 45 years was denied the pension and issued a $115,000 debt notice because she spent three years in Portugal caring for a dying parent. Services Australia ruled she had "broken" her residency. She won on appeal at the AAT — but only after a two-year legal battle. If this has happened to you, appeal immediately.
Social Security Agreements
Australia has social security agreements with over 30 countries including the UK, Italy, Greece, Germany, and New Zealand. If you lived in one of these countries, your time there may count towards the 10-year residency requirement. Check the full list at Services Australia.
Documentation Tips
Services Australia must accept non-English documents if accompanied by a certified translation. If they refuse, this is grounds for an appeal. Gather:
- Passport stamps and travel records
- Australian tax returns for each year
- Medicare and bank records showing Australian activity
- Statutory declarations from family members or neighbours
- Foreign death certificates or hospital records (with certified translation)