Best Places to Retire in Australia: Ranked by What They Cost Your Pension (2026)

Search “best places to retire in Australia” and you’ll find six different lists, each crowning a different #1 town. None of them tell you whether buying there actually protects your pension. Here’s the ranking angle they’re all missing.

Quick Answer: Best Places to Retire in Australia

There’s no single agreed “best” town, because every ranking uses different lifestyle criteria and reaches a different answer. Hervey Bay, Orange, Coolum Beach, Sunshine Coast, Mandurah, and Port Macquarie have all been named #1 by a major list. What actually matters more is whether a town’s house prices let you keep your Age Pension, and whether your state offers stamp duty relief for pensioners. Victoria and the ACT offer generous concessions. NSW, Queensland, and WA offer none.

1. Why Every “Best Places to Retire” List Disagrees

• Six major lists, six different winners. For example, Hervey Bay, Orange, Coolum Beach, Sunshine Coast, Mandurah, and Port Macquarie have each topped a separate ranking published in the past year.
• They all use similar-sounding criteria, weighted differently. So healthcare, affordability, and climate show up everywhere, but one list might weight healthcare at 25% while another barely counts it.
• Prices for the “best” towns span a huge range. Indeed, median house prices across these lists run from around $330,000 to $1.35 million, with no list explaining what that price actually does to your retirement finances.
• None of them mention pension eligibility. So a town can top a lifestyle ranking while quietly pushing a homeowner couple off the full Age Pension.

2. Does the Town You Choose Protect Your Age Pension?

• The asset test decides your pension rate, not the suburb. Specifically, as of July 2026, a single homeowner keeps the full pension with assets under $333,000, and some pension up to $733,500.
• Couples get a higher combined threshold. So a homeowner couple keeps the full pension under roughly $499,000 in assets, tapering to zero around $1,102,500.
• Your home itself doesn’t count as an asset. But money left over after buying, plus super and savings, does count toward these limits.
• A $1.35 million retirement town can quietly cost you your pension. So a cheaper town that scores lower on lifestyle lists can leave far more of your savings inside the asset-test threshold.

3. Stamp Duty Concessions for Pensioners Vary Hugely by State

• Victoria offers a strong exemption. So eligible pensioners can get a full stamp duty exemption on homes up to $600,000, worth over $31,000 in some cases.
• The ACT now offers an uncapped exemption. Since 1 July 2026, eligible pensioners and DVA Service Pensioners pay no stamp duty at all, regardless of price.
• South Australia added new downsizer relief in 2026. Specifically, a scheme launched 25 March 2026 gives relief that tapers out around $2.1 million for new builds.
• NSW, Queensland, and WA offer no pensioner-specific relief. So moving to a “best” town in one of these states means paying full stamp duty, unlike a comparable move within Victoria or the ACT.

4. The Downsizer Rule That Makes Expensive Towns Work

• You can add up to $300,000 per person to super from a home sale. So couples can contribute up to $600,000 combined, on top of normal contribution caps.
• You need to be 55 or over and have owned the home 10 years. So this rule is what makes an expensive town like Coolum Beach realistic for someone selling a big capital-city home.
• It’s how a $1.35 million town can still make sense. Since downsizer funds can top up super rather than sitting as cash that counts against the pension asset test.
• This only helps if you’re actually downsizing. So someone moving from a similarly priced home won’t get the same financial benefit from the rule.

For related reading, see our guides to How Much Do Retirement Villages Cost? The 3 Fees Nobody Explains Together (2026).

FAQ: Best Places to Retire in Australia

What are the best places to retire in Australia?
There’s no single agreed answer. For example, Hervey Bay, Orange, Coolum Beach, Sunshine Coast, Mandurah, and Port Macquarie have each been ranked #1 by a different major list in the past year.

Which state is best for retirees on stamp duty?
Victoria and the ACT offer the most generous pensioner stamp duty concessions. NSW, Queensland, and WA currently offer none.

Can I retire on the Age Pension alone in Australia?
It depends on your assets. A single homeowner keeps the full pension under about $333,000 in assets outside the home, tapering to zero around $733,500.

Does buying an expensive retirement home affect my pension?
Yes. Leftover cash after buying, plus super and savings, counts toward the asset test, so a pricier home can reduce or remove pension eligibility.

What is the downsizer super contribution rule?
It lets people 55 and over who’ve owned their home 10 years add up to $300,000 each ($600,000 per couple) from the sale into super.

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