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Assets Test for Aged Pension

Overview of the Assets Test for Aged Pension

Written by Cameron Drury
Updated over a month ago

Overview

  • The Asset Tests assesses all assets at net market value (i.e. less any debts secured by those assets) including other properties, and super.

  • Main residence (and first 2 hectares) is exempt.

  • Negative net market values are not included (i.e. if an Asset is Assessed as Current Value - Debt secured against it and that's -$10k then that's assessed as a $0 asset and it does not offset the value of other assets).

  • Thresholds indexed at CPI.

  • The total net market value which is over the aged pension assets cap reduces the Aged Pension max rate by $3 per fortnight per $1,000 of assets above the threshold.

Example for how Assets are assessed for the Aged Pension:

Non-Assessed Assets:

Main Residence (Exempt) $2,147,165

Assessed Assets: $2,772,527

Other Properties $0

+ Superannuation $1,597,876

+ Cash $909,752

+ Stocks $264,897

+ Cryptocurrency $0

+ Precious Metals $0

+ Fixed Income $0

+ Vehicle $3

+ Collectables $0

Total Assessable Assets: $2,772,527

The Assets Test reduces your pension by $3 per fortnight for each $1,000 of assets above the threshold. Thresholds are indexed at CPI.

Max Aged Pension Total $161,824

Maximum Basic Rate $149,514

+ Aged Pension Supplement $11,757

+ Energy Supplement $553

Assets Assessed $2,772,527

Asset Test Cap $1,696,342

Assets Above Threshold $1,076,185

Over cap x $3 per $1,000 reduction (fortnightly) $3,229

Annual Reduction $84,173

Pension Under Assets Test: $77,651

The following provides a view of the Assets test cap thresholds changing over time based on an inflation rate of 2.5% pa.

Home Owner Status

Your situation

2026

2027

2028

2029

Homeowner

Single

$321,500

$333,396

$345,731

$358,523

A couple, combined

$481,500

$499,316

$517,790

$536,948

A couple, separated due to illness, combined

$481,500

$499,316

$517,790

$536,948

A couple, one partner eligible, combined

$481,500

$499,316

$517,790

$536,948

Non-homeowner

Single

$579,500

$600,942

$623,176

$646,234

A couple, combined

$739,500

$766,862

$795,235

$824,659

A couple, separated due to illness, combined

$739,500

$766,862

$795,235

$824,659

A couple, one partner eligible, combined

$739,500

$766,862

$795,235

$824,659

NOTES:

  • Canwi does not provide the ability to nominate that a property is greater than 2ha.

  • Superannuation assets which are still in Accumulation phase are not assessed for the Assets Test for the Aged Pension. Canwi assumes that when receiving the Aged Pension that the Superannuation Account is already transferred to an Account Based Pension.

  • Superannuation assets which are Defined Benefits are assessed differently. Canwi does not provide the ability to nominate a superannuation asset as a Defined Benefit.

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