Age Pension and Your Partner

Age Pension and Your Partner

Considering the Age Pension and you're part of a couple? Having a partner, whether married or de facto, can affect your pension eligibility and the amount you receive, but it doesn’t over-complicate your life.

This page walks you through:

• What “being partnered” means to Centrelink
• How your combined income and assets are assessed
• How partnership can affect your entitlement
• Applying for the Age Pension as a couple
• Changes in status and how to manage them
• What to watch for as life evolves

Let’s explore how partnership matters, and why families often see it as a boost, not a drawback.

What Does “Partnered” Mean?

Centrelink views you as partnered if at least one of these is true:

• You’re legally married
• You’re in a de facto relationship, living together as a couple
• You’re living together and presenting publicly as a couple

It doesn’t matter how long you’ve been together, if you're sharing a home and life, Centrelink takes you as a couple. This partnership can affect your pension’s rate because your combined resources are assessed together.

How Partnerships Affect Your Pension

The Age Pension uses both income and assets tests to decide two things:

• If you qualify for a pension at all
• How much you receive

As a couple, Centrelink combines your income and assets. This means thresholds for discounts are higher, for instance, the asset threshold for a couple is significantly higher than for a single person, so having two incomes and assets often works in your favor.

Centrelink compares the outcome of two tests and pays whichever offers the lower penalty:

• Income Test: Looks at income like wages, pensions, investment or rental income, and deemed returns from savings or shares.
• Assets Test: Counts resources like real estate, superannuation accounts (if you’re over pension age), vehicles, bank balances, and more.

Your rate is worked out based on which test penalizes you less—it’s not a double penalty!

Who Counts as a Partner?

You might be partnered with:

• Your spouse (husband or wife)
• A de facto partner of any gender, living in a genuine couple relationship

If you’re living apart due to separation, illness, or work commitments—but still considered a couple—Centrelink still counts you as partnered.

Rates & Thresholds for Couples

The pension thresholds are higher for couples—offering both headroom and a fairer outcome:

• Asset threshold (June 2025):
  - $696,750 for couples living at home
  - $1,069,750 for couples including aged care entry (with higher thresholds due to accommodation costs)
• Income threshold:
  - $44,476 in combined assessable income per year for couples (as at March 2025)
  - Reduces gradually—current taper is $3 per fortnight for each $1000 over threshold

As a couple, you receive a combined pension amount, but you can distribute it however you like between yourselves.

Applying for the Age Pension as a Couple

Applying is easy, Centrelink will ask for both your details. You'll need:

• Personal information (names, DOB, CRNs)
• Proof of relationship (marriage certificate, or de facto evidence like shared bills or leases)
• Combined income proof (payslips, bank/investment statements)
• Combined assets (ownership documents, property valuations, etc.)
• Proof of identity for both of you

If filing online through myGov, just list each other as a partner and Centrelink does the rest.

Changing Circumstances: What to Watch

Life doesn’t stay static. Centrelink needs to know about changes like:

• Separation—spousal death, divorce, or permanent separation
• Moving in/out of age care or moving houses
• Changes in income or assets such as work, investments, inheritances, or property changes
• Partner’s retirement or change of income type

You have 14 days to report these changes. Proactively reporting helps avoid overpayments and reassessment issues.

Single vs. Couple Rates

When your partner is no longer in your picture (due to passing away or separation), you may be eligible for a higher single rate, worth around $217 more per fortnight (June 2025 levels). This can make a big financial difference.

Does One Partner Affect the Other?

Yes. A partner’s holdings can reduce your rate under the combined test system. For example, if your partner has significant assets, it could push your joint portfolio over thresholds, even if your personal assets were modest.

Tips for Couples

• Always declare your partner: It builds a solid, transparent record with Centrelink.
• Group resources carefully: Rental income from shared investment properties together helps reduce errors.
• Plan ahead for separation: If things change, update Centrelink as soon as you can. It may increase your rate.
• Evaluate contributions: Minimize investment income where possible—consider pension income streams or pension-phase super for protection.
• Time aged care decisions carefully: Accommodation Entry Impact can significantly affect thresholds and benefits.

Example Scenarios

Jim & Bev - Both Retired Living Together

• Assets: $500k home, $200k rental unit, $100k savings
• Income: Rental $12k/year, interest $4k
• Result: Under thresholds—they receive a reduced couple pension under the assets test because offset.

David & Joyce - Aged Care

• Assets: $300k in savings, $900k former home (recently sold)
• Income: $25k/year interest
• Result: They qualify under the assisted couple rate with aged care.

Superannuation and Couple Impact

Super draws in pension-phase are included as financial assets. After pension age, your super may be counted for the assets test. Smart planning—like jointly-held pensions or splitting—can moderate impacts.

Lump Sums, Gifts and Partners

Gifts over $10,000 per year per person can affect the gifting rule. If a partner gifts money, Centrelink may consider it part of assets. Track carefully.

Going Overseas Together?

Pension payments can continue while abroad for up to 12 months (extended in some countries). You must advise Centrelink if partner status changes while overseas—like separation or passing.

Mistakes Couples Make—And How to Avoid Them

• Not declaring a de facto partner, Centrelink can impose debts
• Forgetting shared investments, leads to wrong assessments
• Declaring home-splitting, be careful if you occupy one dwelling but share ownership
• Delayed separation notification, can cost you backdated pension if you were eligible earlier

Where to Get Help

• Call Services Australia—they guide you through thresholds, forms, and reviews.
• Speak with an aged care financial planner if considering institutional care
• Family, friends, or Centrelink advocates can help gather documents and submit claims

Final Thoughts

Life’s better shared—and working through the Age Pension as a couple reflects that. While your partner’s income and assets play a role in your pension outcome, it’s rarely a disadvantage.

With careful planning, changes in circumstances, or aged care decisions, couples can maximize their support and prevent unnecessary surprises.

Explore together, gather the details, ask for help when needed and you’ll find the Age Pension can be supportive, fair, and manageable for you both.