PCCs are issued by Centrelink to those receiving the Age Pension. As the holder of a PCC, you are entitled to reduced cost medicines under the Pharmaceutical Benefits Scheme (PBS) and various state and territory government concessions, which may include reductions on property and water rates, energy bills, motor vehicle registration and public transport. State and territory governments and local councils offer different concessions.

If you do not qualify for the Age Pension and therefore do not receive a PCC, you may be entitled to an LIHCC if you have assessable income below certain thresholds.  A LIHCC entitles you to the same pharmaceutical benefits as a PCC, but other concessions may vary.

Self-funded retirees who are of Age Pension age, but do not qualify for the Age Pension, may be eligible for a CSHC if their annual adjusted taxable income + deeming from certain account-based pensions is below the following thresholds:

• $99,025 (singles)
• $158,440 (couples combined)
   

Holders of a CSHC are entitled to discounts on prescription medicines through the PBS. You may also qualify for additional health, household, transport, education and recreation concessions which may be offered by state or territory and local governments and private providers.

If your pension is issued by the Department of Veterans’ Affairs (DVA) then you may be entitled to a PCC, CSHC or DVA Health Card.

The Age Pension has an income free area for singles ($5,512 p.a.) and couples ($9,672 p.a. combined). Note this is for Centrelink assessable income which is often not the same as income earned.

For example, some assets are assessed using deeming, like cash, term deposits, shares, managed funds and account-based pensions, which is a calculated formula and not actual income earned.

Find out more about the Age Pension income test.

Your Age Pension income is not assessable for the Age Pension income test. The Age Pension is assessable however for tax and for aged care.

No, the Age Pension is taxable income (except the energy supplement and the non-taxable component of the pension supplement). However, due to the tax-free threshold and tax offsets you may be eligible for, you may not pay any tax even if you receive the full Age Pension. This will depend on your other taxable income.

The Age Pension age is 67. It is based on your date of birth.
 

Find out more about the Age Pension age.

There are various types of assets which are assessed for Age Pension, many of which are assessed at market value or account balance, such as cash, term deposits, shares, super and investment properties.

Some assets are exempt from the Age Pension assets test, for example your principal home, aged care accommodation lump sums and prepaid funeral expenses.
 

And some are assessed differently again, for example lifetime annuities. A Challenger lifetime annuity (Flexible Income option) may immediately increase your Age Pension because only a portion of your investment is counted under the assets test.

Find out more about the Age Pension assets test.

The Age Pension has an income cut-out threshold for singles ($65,260.00 p.a.) and couples ($99,746.40 p.a. combined). Note this is Centrelink assessable income which is not necessarily income earned.

If you have assessable income at or above your relevant threshold you will not receive the Age Pension.

Find out more about the Age Pension income test.

Centrelink also offers financial assistance packages for those who need extra support from time to time.  

Home Equity Access Scheme

The Home Equity Access Scheme is a voluntary arrangement which provides support in the form of a loan provided by Centrelink or DVA, for a short or indefinite period. It is paid in regular fortnightly instalments. An annual interest rate of 3.95% (compounded fortnightly) is charged on the outstanding loan balance.

If you are over Age Pension age and need additional income, you may be able to access capital tied up in your property assets under the Home Equity Access Scheme. This was formerly known as the Pension Loan Scheme prior to 1 January 2022.

Rent Assistance

Rent Assistance is a supplementary payment for individuals receiving an income support payment and pay private rent. Those who rent from a housing authority will not be eligible. 
 
Rent Assistance rates if you do not have dependent children.

Financial Information Services

Centrelink provides a Financial Information Service which enables you to discuss your finances, how to control your debt, which payments may be available to you and how to make informed financial decisions. 
 

You can make an appointment to speak to a Financial Information Services Officer (FISO) at any time; you do not need to be a current Centrelink customer. To make an appointment, call 132 300. 

If you choose to work past Age Pension age, there are programs in place which could make this financially beneficial.

Work Bonus

The Work Bonus was introduced in 2009 to encourage those over Age Pension age to continue to work and to make it more financially beneficial for them to do so. Its benefits were further increased on 1 July 2019.

Any eligible age pensioner can earn up to $300 per fortnight without it being assessed as income under the pension income test.

This doubles for couples where both are working - both parties may have the first $300 per fortnight of their own employment income not counted. For those with irregular or seasonal income, unused portions of the Work Bonus can be banked up to a maximum of $7,800 at any one time. Additionally, from 1 January 2024, new recipients of the Age Pension will receive an upfront one-off Work Bonus income bank credit of $4,000. 

It is possible to get the Age Pension when you’re overseas, whether you have left Australia on a temporary or permanent basis.

However, if you returned to reside in Australia within the last two years and were transferred to or granted an Age Pension within that time, your pension will be stopped when you go overseas, unless different provisions apply under an international social security agreement.

Otherwise, if you leave Australia for less than 6 weeks, your Age Pension rate normally won’t change.
 

If you leave Australia for more than 6 weeks, both your Pension Supplement will drop to the basic rate and your Energy Supplement will stop.

If you remain outside Australia for longer than 26 weeks, your pension will be reduced to a proportional rate based on your ‘Australian working life residence’. If you leave Australia permanently, the rate of Pension Supplement you receive will reduce on departure and the energy supplement will cease.

There are different rules which apply to other payments and these can be found on the Services Australia website. If the country to which you are moving has an International Social Security Agreement with Australia, then you may be able to receive your payments for longer and at a different rate. To obtain official information about payments paid while outside Australia, we recommend that you visit www.servicesaustralia.gov.au.