Social Security Age Pension overview

This page explains what an Age Pension is, what the eligibility criteria are, who can receive the Age Pension through the Department of Veterans’ Affairs (DVA), and provides information on associated benefits.

The rates on this page are effective from 20 September 2024.

What is an Age Pension?

An Age Pension provides a regular income for people with limited means. An Age Pension is paid to a person who has reached pension age and is subject to income and assets tests.

The Age Pension is paid fortnightly, based on daily entitlements. The rate of Age Pension is reviewed twice-yearly, in March and September, in line with movements in the cost of living and/or average wages.

Who is eligible?

An Age Pension is payable to a person who has reached pension age (see the paragraph titled ‘What is pension age’) and meet one of the following:

• 10 years qualifying Australian residence
• a qualifying residence exemption for an Age Pension
• if reached pension age before 20 March 2020 – receiving a widow B pension, a widow allowance, a mature age allowance or a partner allowance, immediately before 20 March 2020
• if reached pension age before 20 March 1997- receiving a widow B pension, a widow allowance or a partner allowance, immediately before 20 March 1997.

Age Pension available through DVA

Certain veterans and their partners who receive a Disability Compensation Payment (DCP) from the Department of Veterans’ Affairs can also have their Social Security Age Pension paid by DVA.

Age Pension and Service Pension

You cannot receive an Age Pension as well as a Service Pension from DVA or any other Social Security Pension or benefit (except child-related payments) from Services Australia.

What is pension age?

Your pension age depends on your date of birth.

Age Pension age increased by 6 months every 2 years until it reached 67 on 1 July 2023. 

Who is eligible to have an Age Pension paid by DVA?

You are eligible to receive an Age Pension from DVA, if you meet all of the following:

• receive a DVA Disability Compensation Payment
• are at least pension age (refer to the section titled ‘What is pension age’)
• receive a Social Security Age Pension, or are eligible to receive it
• do not receive a Service Pension from DVA or any income support pension other than the Age Pension from Services Australia.

An Age Pension may not be payable because of your income and assets, even if you are eligible (see the section titled ‘Income and assets tests’).

Eligibility for Age Pension to be paid by DVA - partners

Age Pension may be paid by DVA to partners who are:

• legally married to and living with a veteran
• legally married to but separated from a veteran
• living in a de facto relationship with a veteran
• where the veteran is receiving or is eligible to receive the Age Pension through DVA.

Partners are eligible if they meet both of the following:

• receive a Social Security Age Pension, or are eligible to receive an Age Pension
• do not receive a Service Pension from DVA, or any income support pension other than the Age Pension from Services Australia.

How do I transfer from Services Australia to DVA?

If you are currently receiving a Disability Compensation Payment from DVA and an Age Pension from Services Australia, you can transfer your Age Pension to DVA online through MyService.

Using MyService means:

• It is simpler and faster to submit your claim
• we can access the information we need quickly
• there is no need to wait for documents through the post.

Find out how to register for MyService. If you need help to register, call us on 1800 VETERAN (1800 838 372). To access MyService, sign in to MyGov.

If you prefer to use paper forms, you can lodge Form D0664 Claim for transfer of payment of Centrelink age pension to DVA at your nearest DVA office or mail it to us. DVA will verify your personal details with Services Australia and arrange for Services Australia to stop your payments.

How do I claim?

If you are not already in receipt of Age Pension through Services Australia and wish to claim Age Pension through DVA, you need to provide all of the following:

• complete the Services Australia Age Pension claim forms:
  • Claim for Age Pension and Pension Bonus form (SA002)
  • Income and Assets form (SA369)
• complete any other Services Australia forms in relation to your personal, residential and financial circumstances
• provide us with sufficient documentation to prove your identity. For more information refer to Proof of Identity Requirements
• provide us with your tax file number.

Alternately, you can apply for Age Pension directly with Services Australia and transfer payment to DVA later.

Rates of Age Pension

There are 2 different rates of Age Pension:

• a singles rate — payable to single pensioners, widows, and widowers
• a couples rate — payable to each member of a couple where the couple is living together, whether legally married or living in a de facto relationship.

If only one member of a couple receives an Age Pension, the couples rate of pension is paid. If a couple needs to live apart because of ill-health or during a period of respite care, each member of the couple receiving Age Pension, may be paid at the singles rate.

Income and assets tests

The amount of Age Pension you receive depends on your income and assets. The pension is calculated under 2 separate tests, the income test and the assets test. The test paying the lower rate of pension is the one that is applied.

Income Test and Asset Test provide information on how the rate of Age Pension is calculated using the income and assets tests. They also provide information on how your pension will be affected if you give away your income or assets.

What is the work bonus?

The work bonus is an incentive to encourage older pensioners who are able, to continue working. Under the work bonus rules, the first $300.00 of work bonus income earned per fortnight is excluded from the income test.

Example: A work bonus eligible pensioner receives wages of $700.00 per fortnight. When their income is calculated for the income test, the first $300.00 is disregarded, so the assessable wages income is the remaining $400.

Additionally, a work bonus bank allows eligible pensioners to accrue any unused amounts of the $300.00 fortnightly exemption to a maximum of $11,800.00. Any credit in this ‘bank’ can then be used to offset employment income that would otherwise be assessable in the future.

To be eligible you must be over qualifying age/pension age (refer to the section titled ‘What is pension age?’). For more information on Work Bonus refer to Work Bonus.

Disability Compensation Payment

The Disability Compensation Payment you receive is not considered income for Age Pension purposes.

For more information on the Disability Compensation Payment refer to Overview of Disability Compensation Payments and allowances.

What if I have too much income or too many assets?

If you have a high level of income or assets that prevents you from receiving the Age Pension, you may be able to receive a fortnightly income stream through the Home Equity Access Scheme.

If your income is within the limits that would allow you to receive payment of the Age Pension, but your assets exceed the cut-off limit, you may qualify under the hardship provisions. For more information refer to Ask us not to count some assets in assets test.

If you are not receiving an Age Pension and your income is within the Commonwealth Seniors Health Card income limits, you may be eligible for the Commonwealth Seniors Health Card with Services Australia.

Tax file number

You need to provide your tax file number to DVA. If you do not have a tax file number and are not eligible for an exemption you will need to apply for a tax file number through the Australian Taxation Office.

Pension Supplement & Allowances

There are a number of allowances payable to eligible pensioners:

• Pension Supplement — payable to all Age Pensioners, to help with the cost of prescriptions, rates, telephone and internet connections, energy, water and sewerage
• Rent Assistance — payable as part of the pension to Age Pensioners who pay private rent for their accommodation, subject to minimum rent limits
• Remote Area Allowance — payable as part of the pension to Age Pensioners who live in designated remote areas of Australia
• child-related payments — paid by Services Australia to Age Pensioners with dependent children.

What happens when my claim is decided?

DVA will work out if you are eligible for payment and how much Age Pension you will be receiving, depending on your income and assets. When a decision has been made you will be notified in writing. This will include the date of grant and amount of Age Pension you will receive. Your Pensioner Concession Card will be issued at the same time.

What if I am not happy with the decision?

If your claim for an Age Pension is not approved, or you are not happy with the rate of the Age Pension, you can contact the DVA office and talk about it. We can check that all the facts have been considered and tell you why a decision was made.

If you still disagree, you can contact an Authorised Review Officer (ARO) who can:

• take a fresh look at the case
• change the decision if it is incorrect
• tell you how you can appeal if you still disagree
• tell you how you can appeal to the Administrative Review Tribunal (ART).

Remember, if you do not ask for the decision to be reviewed within 13 weeks of being told about it, you can only get back payments from the date you ask for the decision to be reviewed.

Pensioner Concession Card

All Age Pensioners receive a Pensioner Concession Card. This card entitles pensioners to a range of Australian Government, State and local government benefits and concessions. These concessions vary from State to State and are determined by the authorities providing the concessions.

Is my Age Pension taxable?

Basic Age Pension is income for taxation purposes and is therefore taxable. If your pension is taxable, you will receive a payment summary from DVA at the end of each financial year. If the Age Pension is the only income you receive, you will not have to lodge a tax return.

Age Pension allowances are not taxable payments. Disability Compensation Payment and War Widow(er)’s Pension are not taxable payments.

Can I apply for an increase in my Age Pension?

If you receive a reduced rate pension, you may apply for an increase in your rate of pension at any time there is a change in your circumstances. You can do this by contacting us by phone, in writing, or in person.

Can I receive my Age Pension overseas?

Yes. In most circumstances payment of your Age Pension will continue while you are overseas. However, you must notify DVA of your intention to travel, even if you are going overseas for a short period. We will assess your eligibility for continued payment prior to your departure.

Obligations

When you are granted an Age Pension and periodically after that, you will be notified of your obligations. You will be required to tell us within 14 days (28 days if you live overseas) of any event or changes to your circumstances that might affect the rate of Age Pension you receive or your eligibility to receive that pension. If you become aware that you have received or are to receive a compensation payment you will be required to tell us within 7 days. These obligations apply equally to trustees.

You need to tell DVA within 14 days (28 days if you live overseas) if either:

• your residential situation changes
• your marital situation changes
• you receive the maximum rate pension, and your income exceeds the income free area and/or your assets exceed the assets value limit
• you receive a reduced rate pension and your income and/or assets exceed the limits stated in our most recent letter to you about your Age Pension
• you move or travel overseas
• there is any other change that would affect the rate of your Age Pension.

There may be penalties applied in respect of failure to fulfil obligations. In addition, any overpayment caused by a person’s failure to fulfil obligations within the prescribed period are considered recoverable and a penalty interest may be applied.