Age Pension
Purpose of Payment/Benefit
The Age Pension is a non-contributory payment for senior people meeting certain age, residence and means test qualifications. It is designed to ensure that senior Australians have adequate means of support.Eligibility
To qualify for Age Pension a man must be aged 65 or older. The qualification age for women is progressively increasing to 65 and will reach 65 in 2013. The following table gives the age at which women will reach age pension age.
| Period within which woman was born (both dates inclusive) | Pension age | Period within which turning pension age (both dates inclusive) |
|---|---|---|
| Before 1 July 1935 | 60 years | Before 1 July 1995 |
| From 1 July 1935 to 31;December 1936 | 60 years and 6 months | From 1 January 1996 to 30 June 1997 |
| From 1 January 1937 to 30 June 1938 | 61 years | From 1 January 1998 to 30 June 1999 |
| From 1 July 1938 to 31 December 1939 | 61 years and 6 months | From 1 January 2000 to 30 June 2001 |
| From 1 January 1940 to 30 June 1941 | 62 years | From 1 January 2002 to 30 June 2003 |
| From 1 July 1941 to 31 December 1942 | 62 years and 6 months | From 1 January 2004 to 30 June 2005 |
| From 1 January 1943 to 30 June 1944 | 63 years | From 1 January 2006 to 30 June 2007 |
| From 1 July 1944 to 31 December 1945 | 63 years and 6 months | From 1 January 2008 to 30 June 2009 |
| From 1 January 1946 to 30 June 1947 | 64 years | From 1 January 2010 to 30 June 2011 |
| From 1 July 1947 to 31 December 1948 | 64 years and 6 months | From 1 January 2012 to 30 June 2013 |
| From 1 January 1949 | 65 years | From 1 January 2014 |
To qualify for Age Pension a claimant must be an "Australian resident" (that is, living in Australia on a permanent basis) and in Australia on the day the claim is lodged, and must also satisfy one of the following:
- be an Australian resident for a total of at least 10 years, with at least five of these years in one period; or
- have a qualifying residence exemption (refugees and people admitted to Australia under special humanitarian programs); or
- be a woman who is widowed in Australia when both she and her late partner were Australian residents, and who has 104 weeks residence immediately prior to claim; or
- be receiving Widow B Pension, Widow Allowance, Mature Age Allowance or Partner Allowance immediately before reaching age pension age.
- Special rules apply to residence in countries with which Australia has an International Social Security Agreement. Residence in these countries may count towards the minimum 10-year residence requirement.
The Age Pension is subject to an income test and an assets test and also subject to special rules for assessing compensation payments.
Rates
Maximum pension rates are adjusted in line with increases in the Consumer Price Index (CPI) each March and September. After this adjustment is made, the maximum single pension rate is then compared with 25 per cent of Male Total Average Weekly Earnings (MTAWE). If the pension rate is below the MTAWE benchmark it is increased to that rate, with flow-ons to the partnered rate.
Indexation of pensions in line with CPI increases ensures that pensions keep pace with increases in prices. The MTAWE benchmark guarantees that pensioners share in improved community living standards as measured by wages.
For Age Pension rates refer to Centrelink.
The vast majority of Age Pensions are paid by Centrelink. Age pensioners who also receive a Disability Pension from the Department of Veterans' Affairs (DVA) have the choice of having their Age Pension paid by either DVA or Centrelink.