Income while receiving pension

 Author: NikkiATO(Community Moderator)Community Moderator

4 Nov 2025

Hi @Ricsteve1950,

There are a few things to keep in mind when working out your tax obligations and calculations.

Your taxable income includes your pension payments plus any additional income you earn. The combination of these determines your overall tax liability.

You may be eligible for the Seniors and Pensioners Tax Offset, which can reduce the amount of tax you owe. This offset is specifically designed for retirees on low to moderate incomes.

While the standard Medicare levy is 2% of taxable income, certain pensioners with lower incomes may qualify for a reduction or exemption.

To get a clearer picture of your tax situation, I recommend using our Income tax and Beneficiary tax offset and seniors and pensioners tax offset calculators. These will give you a more accurate understanding of how your pension income and additional earnings interact with tax obligations.

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