The Age Pension when living apart: What you need to know

Under the means-testing provisions of our social security system, members of a couple are each paid a partnered rate of Age Pension, and their combined income and assets are assessed regardless of which member of the couple the income or asset belongs to.

The rationale behind this (often contentious) rule is that members of a couple can pool their resources and their living costs are shared. But what happens when you are unable to do this because you must live apart?  

For many couples, this occurs when one of them becomes unwell and needs to move to alternative accommodation to receive care. This may be in the home of a relative or, more often than not, in an aged care setting.  

When this happens, Centrelink will consider you to be an ‘illness-separated couple’. If moving to a care setting, Centrelink should organise this change in Age Pension status for you, but we have seen cases where it was missed so it’s a good idea to mention that you expect to receive a higher rate of Age Pension payment. There is no application process, you just need to ensure Centrelink is aware you are not living together due to illness.