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People reading this page usually work these out too.
See how working or other income changes your Age Pension. The Work Bonus takes the first $300 of wages out of the test each fortnight; above the $226 (single) or $396 (couple, combined) free area the pension reduces by 50 cents in the dollar. Carries both the 20 March 2026 rates and the 20 September 2026 rates that replace them.
The free areas and tapers are unchanged by the 20 September 2026 indexation — it is the maximum rates, and therefore the cut-offs, that move.
| Situation | Income free area (per fortnight) | Reduction above it | Cut-off |
|---|---|---|---|
| Single | $226 | 50c for each dollar | $2,627.80from 20 Sep $2,701.40 |
| Couple living together | $396 combined | 25c for each combined dollar, off each pension | $4,016.80 combinedfrom 20 Sep $4,128.00 combined |
| Couple apart due to ill health | $396 combined | 25c for each combined dollar, off each pension | $5,199.60 combinedfrom 20 Sep $5,346.80 combined |
| Transitional rate — single | $226 | 40c for each dollar | $2,670.25from 20 Sep $2,718.50 |
| Transitional rate — couple | $396 combined | 20c for each combined dollar, off each pension | $4,340.00 combinedfrom 20 Sep $4,418.00 combined |
The income test counts income from all sources, including deemed income on financial assets. Services Australia pays the lower of the income-test and assets-test results. The 20 September 2026 cut-offs are calculated from the DSS maximum rates and the unchanged free areas and tapers — Services Australia publishes its own on the day, and we will replace ours with them.
The Work Bonus is not a payment. It is an offset: $300 of credit is added to your Work Bonus balance every fortnight, whether you work or not, up to $11,800. When you have employment or self-employment income, the first $300 in the fortnight is disregarded and the balance offsets what remains — all before the income test above is applied. Income under $300 is reduced to zero and the unused credit goes back into the balance. It applies only to income from working, not to deemed or investment income, and you do not have to apply for it. The credit and the maximum balance are set in legislation and are not part of the September indexation.
Someone with a full $11,800 balance can earn $12,100 in a single fortnight before any of it is assessed. That is why the published cut-off “may be higher” for people who work.
| Per fortnight | Single | Couple each | Couple combined | |||
|---|---|---|---|---|---|---|
| To 19 Sep | From 20 Sep | To 19 Sep | From 20 Sep | To 19 Sep | From 20 Sep | |
| Maximum basic rate | $1,100.30 | $1,135.40 | $829.40 | $855.90 | $1,658.80 | $1,711.80 |
| Pension Supplement | $86.50 | $88.20 | $65.20 | $66.50 | $130.40 | $133.00 |
| Energy Supplement | $14.10 | $14.10 | $10.60 | $10.60 | $21.20 | $21.20 |
| Total | $1,200.90 | $1,237.70 | $905.20 | $933.00 | $1,810.40 | $1,866.00 |
Adjusted on 20 March and 20 September. A couple living apart due to ill health each get the single rate, and the combined figures are exactly twice the couple-each figures. The Energy Supplement is flat — it does not index — so the whole $36.80 a fortnight increase for a single pensioner is basic rate plus Pension Supplement. September figures from the DSS rates list published 20 August 2026. Transitional-rate pensioners: $977.70 single now, $997.00 from 20 September ($788.80 → $804.40 each partnered).
| Assessable income / fortnight | Reduction | Pension to 19 Sep 2026 | Pension from 20 Sep 2026 | Income + pension (from 20 Sep) |
|---|---|---|---|---|
| $0.00 | -$0.00 | $1,200.90 | $1,237.70 | $1,237.70 |
| $226.00 | -$0.00 | $1,200.90 | $1,237.70 | $1,463.70 |
| $400.00 | -$87.00 | $1,113.90 | $1,150.70 | $1,550.70 |
| $600.00 | -$187.00 | $1,013.90 | $1,050.70 | $1,650.70 |
| $800.00 | -$287.00 | $913.90 | $950.70 | $1,750.70 |
| $1,000.00 | -$387.00 | $813.90 | $850.70 | $1,850.70 |
| $1,200.00 | -$487.00 | $713.90 | $750.70 | $1,950.70 |
| $1,500.00 | -$637.00 | $563.90 | $600.70 | $2,100.70 |
| $1,800.00 | -$787.00 | $413.90 | $450.70 | $2,250.70 |
| $2,100.00 | -$937.00 | $263.90 | $300.70 | $2,400.70 |
| $2,400.00 | -$1,087.00 | $113.90 | $150.70 | $2,550.70 |
| $2,701.40 | -$1,237.70 | $0.00 | $0.00 | $2,701.40 |
Assessable income here is after the Work Bonus. Working pensioners: subtract $300 and any balance from your wages first, then read the row. The pension is taxable — the SAPTO calculator shows whether any tax is actually payable.
$226 a fortnight if you are single, $396 combined for a couple. Above that a single pension reduces by 50 cents for each dollar; each member of a couple loses 25 cents for each combined dollar. The free areas and tapers are not changed by the 20 September 2026 indexation. If the income is from working, the Work Bonus disregards the first $300 a fortnight before the test.
To 19 September 2026: $2,628 a fortnight single and $4,017 combined for a couple living together ($5,200 if living apart due to ill health). From 20 September 2026, with the higher maximum rates: $2,701 single and $4,128 combined ($5,347 apart due to ill health). Above the cut-off the pension is $0 for the fortnight. It is higher if you get Rent Assistance or have Work Bonus balance, and lower if you live outside Australia.
A single pensioner goes from $1,201 to $1,238 a fortnight, up $36.80. Each member of a couple goes from $905 to $933, or $1,810 to $1,866 combined. The increase is in the basic rate ($1,100 to $1,135 single) and the Pension Supplement; the $14 Energy Supplement is flat and does not index.
Every fortnight $300 of Work Bonus credit is added to your balance, up to $11,800. When you work, the first $300 of employment income each fortnight is disregarded, and any balance you have built up offsets what is left, before the income test applies. Earning $1,000 a fortnight with a $5,000 balance leaves $0 assessable; with no balance, $700. The credit and the maximum balance are set in legislation and are not indexed in September.
To 19 September 2026: $1,201 a fortnight single ($1,100 basic rate plus $87 Pension Supplement and $14 Energy Supplement) and $905 each for a couple ($1,810 combined). From 20 September 2026: $1,238 single ($1,135 plus $88 and $14) and $933 each ($1,866 combined). Rates are adjusted on 20 March and 20 September.
Single, to 19 September 2026: $813.90 a fortnight — the $774 over the free area reduces the $1,201 maximum by $387.00. From 20 September 2026 the same income leaves $850.70. For a couple with $1,000 combined, each partner gets $754.20, or $782.00 from 20 September.
No. Services Australia runs both an income test and an assets test and pays the lower result, and it deems income from financial assets rather than using actual returns. Enter your deemed and other income in the 'other income' field if you know it; the assets test is outside this calculator.
Yes. Age Pension is a taxable payment. Tax is not deducted automatically, but you can ask Services Australia to withhold it. The Seniors and Pensioners Tax Offset usually means little or no tax is payable on the pension alone.
Last verified: 28 August 2026. Our content is based on the latest information from official Australian government sources.
Senior Tax & Payroll Analyst
CPA, Registered Tax Agent (25787011)
James is a CPA-qualified tax professional with over 14 years of experience in Australian taxation and payroll systems. He spent six years at the Australian Taxation Office working on PAYG withholding and individual tax return processing before moving into financial publishing. He now leads the tax content at Pay Calculator Australia, translating complex ATO legislation into clear, actionable guidance.
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