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Age Pension Assets Test Explained
The assets test checks the total value of your assets — everything you own except your principal home — to determine your Age Pension eligibility and rate. This guide explains exactly what's counted, what's exempt, the current thresholds, and how the reduction rate applies when your assets fall between the full and nil pension points.
⚠️ The assets test alone doesn't determine your pension
Centrelink runs your situation through both the income test and the assets test, then pays whichever gives the lower result. So an assets-test answer alone isn't your pension — it's only half the picture. To see your actual entitlement (with both tests run together), use the How Much Age Pension Can I Get? calculator.
Current Assets Test Thresholds
Your pension entitlement under the assets test depends on whether you are a homeowner (or equivalent) and your relationship status. Below the lower threshold, you receive the full pension. Above the upper cut-off, you receive nothing. Between the two, you receive a part pension.
| Situation | Full Pension Below | No Pension Above |
|---|---|---|
| Homeowner — Single | ||
| Homeowner — Couple (combined) | ||
| Non-homeowner — Single | ||
| Non-homeowner — Couple (combined) |
For couples, the asset thresholds are combined (you and your partner are assessed as a single unit). The maximum pension itself is $1,810.40/fortnight combined, which is $905.20/fortnight per person.
💡 The Taper Rate: $3 Per $1,000
For every $1,000 of assessable assets above the lower threshold, your pension reduces by $3 per fortnight (i.e., $1.50 per person in a couple). This taper continues all the way to the upper cut-off point where pension ceases.
What Assets Are Counted?
✅ Assets That ARE Assessed
- Financial assets: bank accounts, term deposits, shares, managed funds, bonds
- Account-based superannuation pensions (once you are of Age Pension age)
- Other property: investment properties, holiday homes, second homes, vacant land, etc. (at market value, net of any mortgage)
- Vehicles, caravans and boats (at current market value — private sale value, not insured value)
- Household contents: assessed at "fire sale" / second-hand value, which Centrelink typically accepts at a few thousand dollars for a normal household (not insured value)
- Lifestyle assets: items individually worth more than $10,000 such as jewellery, art, collectibles, antiques
- Business assets and rural property (in certain circumstances)
- Funeral bonds above the exempt threshold (currently $15,750 per person — see the Funeral Bonds guide)
- Loans owed to you (e.g., money lent to family members)
- Gifts you have made in excess of the allowable limits (subject to gifting rules)
❌ Assets That Are EXEMPT
- Your principal home (including up to 2 hectares of curtilage on the same title — see the 5-acre rule)
- Pre-paid funeral plans (i.e. money paid to a funeral director for a specific pre-arranged funeral) — fully exempt, any amount. This is different to a funeral bond — see the Funeral Bonds guide for the distinction.
- Pre-purchased burial plots — fully exempt
- Superannuation in accumulation phase if your partner is under Age Pension age (powerful planning strategy — see the Younger Partner Hub)
- Certain compensation and insurance payments
- Aged care accommodation bonds and lump-sum RADs paid to a residential aged care facility
ℹ️ A common misconception: "Aren't cars exempt?"
No. All vehicles are assessable at their current market value (private sale value, not insured value). The "one car exempt" rule was abolished decades ago. For a typical car worth $15,000–$25,000, that's a meaningful chunk of your asset position to be aware of.
ℹ️ The "Homeowner" Definition
You are treated as a homeowner if you own the home you live in (or have a life interest or granny flat right in it). You are treated as a non-homeowner if you rent, live with others rent-free, or are in a retirement village without paying an entry contribution above the relevant threshold. Non-homeowners get a higher asset threshold because they face ongoing housing costs.
Property on Acreage
If your property is larger than 2 hectares (approximately 5 acres), only the home and the 2-hectare curtilage around it is automatically exempt. The remaining excess land is assessed as an asset. However, if your property meets the 20-year continuous attachment test, you may be able to exempt all the land.
Superannuation and the Assets Test
How your super is assessed depends on your age and the super phase:
| Super Phase | Your Age | Assessed Under Assets Test? |
|---|---|---|
| Accumulation (not yet drawing) | Below Age Pension age | ❌ Not assessed |
| Accumulation (not yet drawing) | At or above Age Pension age | ✅ Assessed at current balance |
| Account-Based Pension (drawing) | Any age | ✅ Assessed at current balance |
| Defined Benefit Pension (income stream) | Any age | ✅ Assessed using a special formula |
💡 Strategy: Super for a Younger Partner
If your partner is under Age Pension age, their super in accumulation phase is not counted in either the income test or assets test. Shifting assets into the younger partner's super can legitimately reduce the assessable asset pool while retaining the funds in a tax-advantaged structure. Always seek financial advice before acting on strategies like this. For a fuller picture of options when one partner is under Age Pension age, see the Younger Partner Hub — covering Carer Payment, JobSeeker, DSP, and the strategies that apply to mixed-age couples.
Worked Examples
📝 Example 1: Single Homeowner — Full Pension
Patricia owns her home and has $250,000 in an account-based pension plus $30,000 in bank accounts. Total assessable assets: $280,000.
Full pension threshold for a homeowner single:
📝 Example 2: Couple — Part Pension
Ken and Helen are homeowners with $600,000 in combined assessable assets (super, investments).
- Full pension threshold (couple):
- Assets above threshold: $600,000 − = $118,500
- Pension reduction: ($118,500 ÷ $1,000) × $3 = $355.50/fortnight reduction
- Maximum couple pension: $1,810.40 combined ($905.20 per person)
Valuing Your Assets
Centrelink assesses assets at their current market value — what you could realistically sell them for today. Key points:
- Real estate: Centrelink may accept a self-assessment but can require a formal valuation
- Financial assets: bank balances, current share prices
- Vehicles and boats: current market value (not purchase price or insured value)
- Household contents: use "fire sale" / second-hand value (typically a few thousand dollars for a normal household), not insured value
⚠️ Gifting Rules Apply
You cannot give away assets freely to reduce your assessable total. If you gift more than the allowable amount, Centrelink treats the excess as a "deprived asset" and continues to count it against you for 5 years. See our Gifting Rules guide for the full details.
Want to Know Exactly Where You Stand?
The assets test is only half the story — to see your actual pension, run both tests with the How Much calculator. Or get personalised guidance from a retirement specialist.
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Last reviewed: 8 May 2026 · All rates shown above are current. For previous indexation periods or other Centrelink rates, see the Centrelink Rates & Thresholds reference page.