Get the most recent updates on the Age Pension Income and Assets Test, including rules, eligibility, and recent changes. As retirement approaches, many Australians are anxious about how their savings and assets may impact their eligibility for the Age Pension. This article provides a comprehensive overview of how the Assets Test operates, outlines the eligibility criteria, and highlights key information retirees need to know.
Table of Contents
Age Pension Income and Assets Test
A common question among Australians nearing or already in retirement is, “How much can I earn before it affects my pension?” The answer varies based on your income and the value of your assets, excluding your family home. The Age Pension Assets Test, conducted by Centrelink, is used to determine eligibility for full or partial pension benefits.
The Assets Test evaluates the total value of property and other assets owned by retirees and their partners to assess their eligibility for pension benefits. Centrelink uses this test alongside the Income Test to determine the amount of Age Pension individuals can receive.
| 2400 Stimulus Checks Announced For 2024 |
| Rent Assistance For Aged Pensioners In Australia |
| Disability Benefits Arrival Dates |
| Average Hourly Wage In Australia |
| Stimulus Check 4 Expected Date |
Age Pension Eligibility Criteria
To qualify for the Age Pension, retirees must meet several specific requirements set by the Australian Government:
- Age Requirement: Applicants must have reached the pension eligibility age, which varies depending on their date of birth.
- Residency: Claimants must meet Australian residency requirements.
- Asset Limits: The total value of an individual’s assets must be below certain thresholds to qualify for full or partial Age Pension benefits.
- Income Limits: The recipient’s income from all sources, including Centrelink benefits and other earnings, must also fall below specified limits.
While base pension rates remain unchanged, adjustments to income and asset thresholds mean that many pensioners will see an increase in their payments.
Age Pension Assets Limits 2024
The asset limits determine whether you qualify for a full or partial Age Pension and vary depending on your living arrangements and whether you are single or part of a couple. Here is a breakdown of the asset thresholds as of July 2024.
| Living Arrangements | Full Pension | Partial Pension |
| Single Homeowner | $314,000 | $686,250 |
| Single Non-Homeowner | $566,000 | $938,250 |
| Combined, Homeowner | $470,000 | $1,031,000 |
| Combined, Non-Homeowner | $722,000 | $1,283,000 |
Statistics reveal that fewer Australians fail the Age Pension income test compared to the asset test. It’s important to note that these thresholds are adjusted annually according to changes in the consumer price index.
Age Pension Income Limits 2024
According to the Centre of Excellence in Population Ageing Research, 67% of Australians receiving partial pensions earn too much to qualify for the full pension, while the remaining 33% have assets exceeding the limit. Here is a breakdown of the income thresholds for July 2024.
| Circumstances | Full Pension Fortnightly Limit | Partial Pension Fortnightly Limit |
| Single | $212 | $2,444.60 |
| Couple | $372 | $3,737.60 |
| Couple Separated Due to Illness | $372 | $4,837.20 |
The changes to the Centrelink Age Pension limits aim to provide greater financial flexibility for older Australians. With increased income and asset thresholds, more individuals can qualify for the Age Pension, and those already receiving it may benefit from higher payments.
Age Pension Income and Assets Latest Changes
Starting July 1, 2024, changes to the Centrelink Age Pension are set to benefit thousands of older Australians by providing greater financial flexibility and enhancing their quality of life. Pensioners are encouraged to review their circumstances to understand how these changes might impact their payments and take advantage of the new limits.
If your assets exceed the threshold for receiving a full pension, your payment will decrease by $3 per fortnight for every $1,000 of assets over the limit. Once your assets surpass the threshold for a partial pension, your payments will gradually phase out.
All We Know
Retirees can manage their assets in specific ways to maintain eligibility for the Age Pension by following these guidelines:
- Gifting Assets: Retirees can gift assets, but there are limits on the value of assets that can be gifted without impacting pension eligibility. Gifts exceeding these limits are assessed and included in the Assets Test for up to five years.
- Reporting Changes: It’s essential to inform Centrelink promptly about any changes in asset values, such as buying or selling property, to ensure accurate pension assessments.
- Income Impact: For every dollar of income above the set thresholds, the Age Pension is reduced by 50 cents. This reduction continues until the pension is phased out completely.
FAQs
How is the assets test calculated?
The assets test evaluates the total value of an individual’s assets, such as property, savings, and investments. The value of these assets, excluding the family home, affects the pension amount, with higher assets resulting in reduced payments.
How often are the thresholds reviewed and updated?
The income and asset thresholds are reviewed and updated periodically, usually in line with changes in the Consumer Price Index and economic conditions. The government may adjust these thresholds annually or as needed.
