Amanda Hardy Lai, Author at Retirement Essentials

How to confirm your retirement income

Even after retirement, it’s normal to feel uncertain about whether your money will last and whether you’re making the most of what you’ve worked for. Many Australians in their late 60s and 70s share the same concerns:

Am I getting all the Age Pension I’m entitled to?

Am I using my super in the most effective way?

Will my savings stretch as long as I need them to?

If you’ve ever wondered the same, you’re not alone. At this stage of life, finances are only part of the picture – there’s also lifestyle, health, and planning for future needs which may include aged care. With so much to think about, it can feel overwhelming.

The easiest way to start making sense of it all is with a free Retirement Essentials 10-minute phone discussion. In this short conversation, our experienced team members will listen to your situation, help you identify priorities, and clarify which of our services are most relevant to your particular

Deeming explained: Three things you didn’t know

by Amanda Hardy Lai | Centrelink Age Pension

Deeming is central to how Centrelink calculates Age Pension entitlements, but it’s often misunderstood. Whether your investments earn less (or more) than expected, deeming assumes a standard rate of return – which can affect your pension. Here are three things many retirees don’t know.

1. Centrelink looks at your total balance, not actual earnings
Many think Age Pension assessment will be based on what their bank or super actually pays, or what they are drawing down from their Account-Based Pension (ABP). Instead, Centrelink applies ‘deeming’ rates to financial assets, regardless of real returns.

From 20 September 2025, the lower deeming rate will be 0.75% (on up to $64,200 for singles or $106,200 for couples combined). Anything above that will be deemed to earn 2.75%. (Centrelink announcement). If your assessed income is already affecting your entitlement, this change could reduce your fortnightly payments.

2. Cash for a new home isn’t immune
If you’ve sold your principal home and are holding the proceeds for your next one, those funds are exempt from the assets test for up to 24 months (or 36 with valid delays). But what’s less known is that all that money is still counted under the income test and deemed at the lower rate.

With the deeming rate rising in September, this could now reduce your Age Pension. For example:

$800,000 from a home sale was previously deemed at 0.25%, generating about $2,000 a year in deemed income.
From 20 September 2025, the lower rate rises to 0.75%, increasing deemed income to roughly $6,000 a year.
Under the income test, this could reduce fortnightly Age Pension payments by around $76 while the money sits in the bank until the purchase of a new home is settled.
Whether the income test affects you depends upon which test – assets or income – produces the lower payment. This matters especially for retirees who are still working or have a spouse under Age Pension age earning income.

3. You can be under the asset limit and still get less than the full Age Pension
Even below the Age Pension asset limit, the income test can reduce payments. Take Greg, a single homeowner with $300,000 in financial assets and $20,000 of personal assets. He qualifies for the full rate under the asset test, but deeming changes the picture. Under the previous rates, his deemed income was $5,466 per year, keeping him below the income test threshold for a full Age Pension.

From 20 September 2025, deeming rates rose to:

0.75% on the first $64,200
2.75% on the remainder
Greg’s total deemed income under the new rates will be about $6,966 per year, or $268 per fortnight. The ‘free area’ is $5,668 per year, or $218 per fortnight; then $50 above it reduces the pension by 50 cents per dollar.

With previous deeming rates: Greg gets the full single Age Pension – $1,179 per fortnight, or $30,646.20 per year.

With increased deeming rates: The income test reduces his pension by $25 per fortnight ($650 per year), bringing it down to $1,154 per fortnight, or about $29,997 per year.

So even though Greg is comfortably under the current asset threshold, the change in deeming rates could see his Age Pension trimmed.

Rental income and Your Age Pension: Understanding the rules

by Amanda Hardy Lai | Centrelink Age Pension

Owning an investment property can be a great way to boost your retirement income. And about one in five Australian households owns a property beyond their main home (ABS, 2019–20). So this is something many retirees are juggling when it comes to thinking about retirement.

Here’s the tricky part: Centrelink doesn’t treat rental income the same way the Australian Tax Office (ATO) does. Many people assume the deductions they claim on their tax return – depreciation, borrowing costs, or renovations – will reduce their Age Pension income assessment. That’s not the case, and it can lead to surprises.

Let’s go through the essentials so you can see clearly what counts, what deductions are allowed, and how to avoid negative impacts on your Age Pension.

What counts as rental income?

Centrelink classifies rental income as rent from investment properties or land. Income from boarders or lodgers is assessed separately.

What deductions are allowed?

Centrelink is more selective than the ATO. You can deduct:

Agent’s fees

Repairs and maintenance

Land and water rates

Loan interest (where the loan was obtained to purchase the rental property)

But you cannot deduct:

Capital depreciation

Special building write-offs

Construction costs

Loan establishment fees

Tip: If your property runs at a loss, Centrelink treats the income as zero. You also cannot offset losses from one property against income from another.