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From 1 July 2026, several Centrelink thresholds used to assess Age Pension eligibility increased, providing a modest boost for many retirees and potentially opening the door to benefits for some who previously missed out.

While the maximum Age Pension payment rates did not change on 1 July (these are typically reviewed in March and September), the thresholds used under the assets test, income test, and deeming rules were indexed upwards.

Higher Asset Limits May Improve Eligibility

The most significant change was to the Age Pension assets test. The amount of assets retirees can hold before their pension starts reducing increased across all household categories.

As a result:

• Some existing part-pension recipients may see a small increase in payments.

• Certain retirees who were previously above the eligibility cut-off may now qualify for a part pension.

• Access to the Age Pension can also unlock valuable concessions, including the Pensioner Concession Card.

Updated Assets Test Thresholds

The upper asset limits at which Age Pension eligibility ceases also increased, with some thresholds now exceeding $1 million.

Changes to Deeming Thresholds

The deeming thresholds used to assess income from financial investments also increased.

This means a larger portion of savings and investments is assessed at the lower deeming rate before the higher rate applies. For some retirees, this may slightly improve Age Pension outcomes under the income test.

Updated Deeming Thresholds

All figures are from Services Australia and the Department of Social Services 1 July 2026 indexation rates list.

Why the Impact Varies

Although the thresholds increased considerably, the actual benefit received for individuals will depend on which test determines your pension entitlement.

For retirees assessed primarily under the assets test, the increase may result in a noticeable improvement to payments. Those assessed under the income test may see little or no change, depending on their income and investment structure.

A Reminder About Pension Indexation

Centrelink uses different indexation schedules for different parts of the Age Pension system:

• Pension payment rates are generally reviewed in March and September.

• Assets test thresholds, income test free areas, and deeming thresholds are typically reviewed in July.

This often creates confusion, as increases to eligibility thresholds do not automatically mean pension payments themselves have increased.

What This Means for Retirees

If you currently receive a part Age Pension - or were previously close to the eligibility limits - it may be worthwhile reviewing your position following the July 2026 changes.

Even a small entitlement can provide access to valuable concessions and support, making it important to ensure your Centrelink assessments remain up to date.

As always, Centrelink eligibility depends on your individual circumstances, assets, income and living arrangements. Seeking advice can help ensure you are maximising any benefits available to you.

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