Single Homeowner Age Pension: 3 Worked Examples From $0 to the Full $1,200.90
A single homeowner who has reached Age Pension age gets the maximum rate of $1,200.90 a fortnight if their assets sit below $321,500 and their income below $218 a fortnight. Above those points, two tests run in parallel — the income test and the assets test — and Centrelink pays whichever one produces the lower result. The three worked examples below trace one person, "Pam", from a tiny super balance to the cut-off, showing the exact arithmetic Services Australia uses at each step.
The numbers that drive every calculation (20 March 2026)
Age Pension rates and thresholds change twice a year — on 20 March and 20 September. The figures in this guide are the ones in force from 20 March 2026 to 19 September 2026, taken from Services Australia. For a single person they are:
| Component | Single homeowner | Rule |
|---|---|---|
| Maximum basic rate | $1,100.30 / fn | The pension itself |
| Pension Supplement (max) | $86.50 / fn | Auto-added |
| Energy Supplement | $14.10 / fn | Auto-added |
| Maximum total | $1,200.90 / fn | ≈ $31,223.40 / yr |
| Income free area | $218 / fn | Full pension below this |
| Income taper | 50c per $1 over | Pension drops $0.50 per extra $1 |
| Income cut-off | $2,619.80 / fn | $0 pension above this |
| Assets free area | $321,500 | Full pension below this |
| Assets taper | $3 per $1,000 over | Pension drops $3/fn per extra $1,000 |
| Assets cut-off | $722,000 | $0 pension above this |
Two more rules tie it together. First, your home is exempt from the assets test as long as you live in it — that is what "homeowner" means here, and it is why a homeowner's free area and cut-off are lower than a non-homeowner's. Second, financial assets (super in pension or accumulation phase once you are pension age, bank accounts, shares, managed funds) are run through deeming for the income test, which we explain next.
How deeming turns your savings into "income"
The income test does not look at what your investments actually earn. Instead, Centrelink assumes — "deems" — a return. For a single person the deeming rates from 20 March 2026 are:
- The first $64,200 of financial assets is deemed to earn 1.25% a year.
- Everything above $64,200 is deemed to earn 3.25% a year.
The annual deemed amount is then converted to a fortnightly figure (we divide by 26 throughout this guide). This matters enormously for a single homeowner: a large super balance generates a large deemed income even if it is sitting in cash, which is why the income test sometimes — but not always — becomes the binding test. Source: Services Australia — Deeming.
Example A — full pension: $50,000 in super, no other income
Pam, 67, single, owns her home. She has $50,000 in a super account and nothing else assessable. No wages, no rental income.
Step 1 — Assets test. Her home is exempt, so her assessable assets are $50,000. That is well under the $321,500 free area. The assets test allows the full $1,200.90.
Step 2 — Income test (via deeming). Her $50,000 is below the $64,200 single threshold, so it is all deemed at 1.25%: $50,000 × 1.25% = $625 a year ÷ 26 ≈ $24.04 a fortnight. That is below the $218 income free area, so the income test also allows the full $1,200.90.
Result: both tests give the maximum, so Pam receives the full $1,200.90 a fortnight (about $31,223 a year).
The lesson: a modest super balance does not reduce the pension at all. Pam could hold up to about $271,500 in financial assets before deeming alone pushed her past the income free area — and even then the assets test would still likely be the gentler of the two.
Example B — part pension: $450,000 in assessable assets
Pam, a few years later. She still owns her home, but now has $450,000 in financial assets (a mix of super and a term deposit). We run both tests and Centrelink pays the lower answer.
Assets test. Assessable assets $450,000 − free area $321,500 = $128,500 over. The taper is $3 per fortnight for each full $1,000 above the free area. $128,500 rounds down to 128 complete blocks of $1,000, so the reduction is 128 × $3 = $384 a fortnight.
$1,200.90 − $384 = $816.90 a fortnight.
Income test (via deeming). First $64,200 × 1.25% = $802.50. Remaining $385,800 × 3.25% = $12,538.50. Total deemed = $13,341 a year ÷ 26 ≈ $513.12 a fortnight.
Income over the free area: $513.12 − $218 = $295.12. Taper at 50c: $295.12 × 0.50 = $147.56 reduction.
$1,200.90 − $147.56 = $1,053.34 a fortnight.
Which test wins? Centrelink pays the lower figure. The assets test ($816.90) is well below the income test ($1,053.34), so the assets test determines Pam's payment: $816.90 a fortnight (about $21,239 a year).
This is the most common situation for asset-rich, income-modest retirees: once financial assets climb past roughly $300,000–$350,000, the assets test usually becomes the binding one, because the assets taper bites harder than the income taper for the same dollar of capital.
| Test | Reduction | Fortnightly pension | Binding? |
|---|---|---|---|
| Assets test | −$384.00 | $816.90 | ✔ Yes (lower) |
| Income test | −$147.56 | $1,053.34 | No |
Example C — nil pension: $722,000 or more in assets
Pam after an inheritance. Her financial assets now total $725,000. Home still exempt.
Assets test. $725,000 − $321,500 = $403,500 over → 403 blocks of $1,000 × $3 = $1,209 a fortnight reduction. That exceeds the entire $1,200.90 maximum, so the assets test reduces her pension to $0.
Where exactly does it hit zero? The cut-off for a single homeowner is $722,000. At that point: ($722,000 − $321,500) ÷ $1,000 = 400.5, rounded down to 400 blocks × $3 = $1,200 reduction, which all but wipes out the $1,200.90 maximum. Above $722,000 the pension is officially nil.
Result: Pam gets $0 Age Pension under the assets test, regardless of how little income those assets actually produce.
Two practical notes. First, even with no pension, Pam can apply for a Commonwealth Seniors Health Card, which is income-tested only (not assets-tested) and unlocks cheaper medicines. Second, the cut-off is not a cliff to fear in isolation — drawing down assets (renovating the exempt home, gifting within the allowed limits, or simply spending) can move someone back into part-pension territory, but gifting rules are strict, so get advice first.
Side-by-side: which test decides the payment?
The single most misunderstood rule is this: Centrelink applies both tests every fortnight and pays whichever produces the lower pension. It is never the average, never the sum — just the lower of the two. Here is Pam at each stage.
| Scenario | Assessable assets | Assets-test pension | Income-test pension | Pension paid |
|---|---|---|---|---|
| A — $50k super | $50,000 | $1,200.90 (full) | $1,200.90 (full) | $1,200.90 |
| B — $450k assets | $450,000 | $816.90 | $1,053.34 | $816.90 (assets) |
| C — $725k assets | $725,000 | $0 | $453+ (part) | $0 (assets) |
Notice how in both B and C the assets test is the binding one. For most single homeowners whose wealth is in super and savings rather than in a large salary, the assets test is the test to watch. The income test tends to bind only when someone has substantial earned income, a defined-benefit pension, or rental income on top of their financial assets.
- Both tests run; the lower result wins. Never add or average them.
- Your home is exempt from the assets test while you live in it — that defines "homeowner".
- Full single rate is $1,200.90/fortnight (basic $1,100.30 + Pension Supplement $86.50 + Energy Supplement $14.10), 20 Mar–19 Sep 2026.
- Assets free area $321,500; cut-off $722,000 for a single homeowner. Taper is $3/fn per $1,000 over.
- Deeming converts savings into income for the income test: 1.25% on the first $64,200, 3.25% above.
- For asset-rich retirees, the assets test usually binds — as in Examples B and C.
Frequently asked questions
Does my house count toward the $321,500 limit?
No. The home you live in is an exempt asset for the assets test, no matter its value. That exemption is exactly why a "homeowner" has a lower free area ($321,500) and cut-off ($722,000) than a non-homeowner single ($579,500 and $980,000), per Services Australia.
How much can a single homeowner have and still get the full pension?
Up to $321,500 in assessable assets and under $218 a fortnight in assessable income (after deeming). Below both thresholds you receive the full $1,200.90 a fortnight, as in Example A.
Why does Centrelink count income I'm not actually earning?
Because of deeming. Rather than tracking the real return on every account, Centrelink assumes a fixed rate — 1.25% on the first $64,200 and 3.25% above for a single person — and treats that as your income. See Services Australia — Deeming.
At what asset level does my pension hit zero?
$722,000 in assessable assets for a single homeowner (20 Mar–19 Sep 2026). Above that the assets test reduces the pension to nil, as shown in Example C.
If both tests would reduce my pension, do they stack?
No. They are calculated separately and Centrelink pays the lower of the two results — never the combined reduction. In Example B the assets test ($816.90) was lower than the income test ($1,053.34), so $816.90 was paid.
Can I get anything if I'm over the assets cut-off?
You won't get the Age Pension, but you may qualify for the income-tested-only Commonwealth Seniors Health Card, which gives cheaper prescriptions and some concessions regardless of your asset value.
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Sources: Services Australia — How much Age Pension you can get, Assets test for Age Pension, Income test for Age Pension, and Deeming. Rates effective 20 March 2026 – 19 September 2026.