Age Pension Indexation Estimator
This tool shows the possible impact on Age Pension rates from pension indexation and changes to deeming rates which apply from 20 September 2025
The Federal Government adjusts pension payments twice a year (20 March and September) to account for changes in living costs. This is called indexation.
This estimator allows you to see how much your pension may change based on indexation and any changes to deeming rates.
The estimator is a guide only and is not able to show your specific circumstance.
It makes this estimate using the following three variables: relationship status; home ownership status and the amount of financial assets you hold (in $50,000 increments).
If you work, the estimator unfortunately cannot account for this in the calculation. It also does not account for changes in the value of assets such as shares or property which will change your pension rate.
There are several assumptions used when calculating this estimate. You should read these when using this estimator to understand its limitations. Information about how we make this calculation can be found below.
Note: Only Centrelink can give you an accurate determination of your pension entitlement based on your specific circumstance.
Age Pension Indexation Estimator:
The above are general estimates of the potential impact based on the information available and assumptions made and is not intended as educational material and not legal advice, financial advice, or other forms of professional advice. The impact will vary depending on the full financial circumstances of specific individuals or couples. We discuss our assumptions further below.
For more information about indexation, deeming rates and other issues relevant to older Australians, check out and subscribe to our weekly Connect e-newsletter.
These are the assumptions used to produce these estimates:
- Deeming rates and pension indexation applies as announced for 20 September 2025, other thresholds and rates are as in place as at 1 July 2025.
- All the of the income free area ($218 for singles, $380 for couples) is available to apply against deemed income and other income. No employment income is earned.
- Excludes any payments received in relation to renting, such as Commonwealth Rental Assistance.
- Assumes ownership of non-deemed other assets (such as real estate, primary production assets and foreign assets) in approximately the same proportion as those in the DSS Quarterly Benefit and Payment Recipient Demographic statistics, accounting for single/couple and homeowner/non-homeowner status and by asset range. Assumes a return of 5% on these non-deemed assets.
Q: Why are only some financial asset values shown
A: We have selected the financial asset ranges most likely to be impacted by a change to the deeming rates. People with financial assets below this level are more likely to retain the full-rate pension; people above these levels are not likley affected becasue they are impacted by the Assets Test. As these are general estimates and not based on individual circumstances, we have calculated the amounts in $50,000 increments.
Q: Why don't these estimates reflect what I'm receiving?
A: These estimates are intended as broad figures showing the potential of a change to deeming rates and are based on a number of assumptions.
Deeming rates impact the amount of pension received under the Age Pension Income Test. This doesn't only impact part-pensioners, but it can also impact those receiving a full-rate Age Pension. Some people who currently hold a Commonwealth Seniors Health Card (CSHC) may lose this card if deeming rates increase. The higher the increase in the deeming rates, the more people who could be shifted onto a part-rate Age Pension, the more full and part-rate Age Pensioners will lose in fortnightly income and the higher number of people that will lose the CSHC.
What are deeming rates?
For the Age Pension income test, it is not the actual income you earn from financial assets which matters, but the income you are estimated to have earned through a process called deeming.
Deeming only applies to financial assets, not all assets. Financial assets include things like superannuation (under certain circumstances), savings accounts, term deposits, some income streams or listed shares. More information can be found on the Services Australia website.
This process is intended to keep payments from frequently changing and provide an incentive to invest in higher yielding assets.
How are deeming rates set?
The deeming rates are set by the Federal Government and there is not a fixed calculation method publicly available. Services Australia says they "reflect expert advice about what the markets are doing".
Deeming rates were frozen for several years, until 30 June 2025. The government announced the first increase in the deeming rates following the freeze would occur on 20 September 2025.
Going forward, deeming rates will continue to be a decision of government but based on a recommendation Australian Government Actuary, who will "advise Government on the most appropriate rate, guided by the returns that pensioners and other payment recipients can reasonably access on their investments," according to a statement by the Minister for Social Services, Tanya Plibersek.
