Age Pension Basics
The Age Pension is Australia's safety net for older Australians. In 2025, the maximum rate is $1,020.60/fortnight for singles and $1,538.60/fortnight for couples (combined). However, most people don't receive the full amount due to assets and income testing. You must be 67 years old (increasing gradually) and have lived in Australia for 10+ years (including 5 continuous years after age 16). The pension is indexed twice yearly to keep pace with inflation.
Assets Test
Your pension reduces by $3 per fortnight for every $1,000 of assets over the threshold. For 2025: Singles can have up to $301,750 in assets (homeowners) or $543,750 (non-homeowners) before losing all pension. Couples can have up to $451,500 (homeowners) or $693,500 (non-homeowners). Your home is exempt from the assets test but other property, shares, super over $1.75 million, cars over $9,500, and bank accounts all count.
Income Test
Your pension reduces by 50 cents for every $1 of income over $204/fortnight (singles) or $360/fortnight (couples combined). This includes employment income, investment returns, rental income, and deemed income from financial assets. Bank accounts and term deposits are "deemed" to earn 0.25-2.25% depending on the balance, regardless of actual returns. This affects many Chinese Australians who keep large cash savings.
Superannuation Impact
Super becomes assessable under both assets and income tests once you reach Age Pension age. Account-based pensions from super are deemed like other financial assets. However, there are strategies to maximise pension entitlements: contribute extra to super before 67 (if you qualify for deductions), consider funeral bonds or annuities (partially exempt), or gift money to children (within limits) to reduce assessable assets.
For Chinese Australians
Residency requirements can be complex for migrants. Time spent in Australia on permanent residence visas generally counts, but not tourist or temporary visas. If you've lived in China and Australia, social security agreements may help you qualify for a proportional pension. Document all periods of Australian residence carefully. If you support adult children in China financially, this might be considered gifting and affect pension eligibility if it exceeds allowed limits ($10,000/year or $30,000 over 5 years).
Application Process
Apply online through your Centrelink account 13 weeks before your 67th birthday. You'll need identity documents, bank statements, property valuations, investment statements, and super fund details. Processing takes 4-8 weeks. Payments can be made to Australian bank accounts or, in some cases, overseas accounts if you're temporarily overseas. The pension is taxable income but most pensioners pay little to no tax due to various offsets and rebates.