For retirees who are near the assets test limit, careful financial planning can help maintain or increase your Age Pension payments and maximise your retirement income.
Book a time today
Let's start with your contact details
Age Pension assets test
The Age Pension provides essential financial support for millions of Australians during retirement. Centrelink determines how much a household receives every fortnight through the Age Pension assets test.
How much you are entitled to in pension payments depends on the value of the assets you hold. There are limits on the value of the assets you can hold to be eligible for the Age Pension.
If your assets exceed these limits, your pension may be reduced or you might not qualify. It's how Centrelink ensures support goes to those who need it most.
Not sure where to begin?
Our Retirement Centre can provide one-on-one support and answer the questions you might be too shy to ask. Our services are available to all.
Current assets test limits
The assets test applies different limits depending on:
- If you're a homeowner or non-homeowner
- Applying for the age pension as a single or as a couple.
Single homeowners with assets up to $314,000.
Single non-homeowners with assets up to $566,000.
Homeowner couples (combined) with assets up to $470,000.
Non-homeowner couples (combined) with assets up to $722,000.
Couples separated due to illness (homeowner or non-homeowner, combined) with assets up to $470,000 or $722,000 respectively.
Couples with one partner eligible for the pension (homeowner or non-homeowner, combined) with assets up to $470,000 or $722,000.
What happens if assets exceed these limits?
If your assets exceed the threshold, your Age Pension will gradually decrease.
For example:
- A single homeowner with more than $314,000 in assets will start to see a decrease in their Age Pension payments. If their assets reach $695,500, their Age Pension payments will be reduced to $0.
- For a non-homeowner couple, the maximum assets cut-off is $1,297,500.
The government reviews and adjusts these figures in March, July, and September every year to keep up with inflation and changes in the cost of living. Always make sure you’re using the latest figures when calculating your pension eligibility.
Types of assets included in the test
Not all assets are included in the Age Pension assets test limits, as some asset types are exempt.
What’s included in assets testing
Superannuation
All superannuation savings are included in the assets test once you reach Age Pension age. Before then, they are exempt. This includes superannuation that has been converted to an Account-Based pension, as well as defined benefit pensions and annuities.
Investment properties
Any additional properties you own, such as rental properties or holiday homes, are included.
Vehicles, boats, and caravans
Whether you own a car, boat, or caravan, their current market value is counted.
Financial investments
Any money held in financial investments will be included in your asset total, including bank accounts, shares, term deposits, and bonds.
Personal valuables
Jewellery, collectibles, and antiques will also be assessed for their current market value.
What’s not included in assets testing
Your primary residence
The family home is exempt, provided it’s your principal residence.
Pre-paid funeral expenses
Funeral bonds and expenses (up to certain limits) are excluded from the assets test.
Certain annuities and income streams
Some financial products that meet specific Centrelink criteria are exempt.
Special disability trusts*
Exempt if the funds are used solely to provide for a family member with severe disabilities.
*limits apply
Financial strategies to help stay within asset limits
For retirees who are near the assets test limit, careful financial planning can help maintain or increase your Age Pension payments and maximise your retirement income. We've listed a number of strategies on the right.
While these strategies can help keep your assets below the test limits, each individual’s situation is unique. Always seek personalised financial advice so you can make the best decisions for your retirement.
Centrelink allows you to gift some of your assets without impacting your Age Pension. You can gift up to $10,000 in a financial year, or a total of $30,000 over five years, without it being counted toward your assets. However, exceeding this limit can affect your pension, as the excess amount will still be treated as an asset for five years.
Since the family home is exempt from the assets test, many retirees choose to invest in their home by making improvements or upgrades. Renovating your home can reduce your countable assets (via the cost of renovations), and improve the value of a property, without affecting your pension eligibility.
If your partner is under Age Pension age, their superannuation isn’t included in the assets test. By contributing to your spouse’s super account, you can lower your assessable assets without negatively affecting your pension.
Pre-paid funeral expenses and bonds (up to the allowable limit) are exempt from the assets test. Purchasing these exempt products can reduce your assessable assets while preparing for future expenses.
Frequently asked questions
You can reduce your assessable assets through strategies like gifting within Centrelink’s allowable limits, investing in your family home, or purchasing exempt financial products.
The cut-off depends on your circumstances. For example, a single homeowner can have assets up to $695,500 and still receive a part pension, while non-homeowner couples can have assets up to $1,297,500.
The family home, pre-paid funeral bonds, and certain income streams are exempt from the asset test. Understanding which assets are exempt can help you plan to maximise your pension.
It depends on your total assessable assets. For example, homeowner couples can have up to $470,000 in combined assets, including bank balances, before their pension is reduced.
Your retirement questions answered
A financial planner can take the guesswork out of retirement. Book a time for an initial conversation and we can help you map out your retirement goals, supporting services, and next steps.
This initial appointment is obligation free and available to all fund members at no additional charge.
Book a time to talk to our advice team or call us on 1800 065 753
Have a general enquiry? Contact our Helpline.
We acknowledge all First Peoples of the beautiful lands on which we live and work, and their enduring knowledge and connections to Country. We honour the wisdom of and pay respect to Elders past and present.