Get All The Latest Updates on the Age Pension Income and Assets Test: Rules, Pension Eligibility, and Latest Changes Here. As retirement gets closer, many Australians wonder how their savings and assets will impact their eligibility for the Age Pension. This article explains how the Assets Test works, the eligibility requirements, and essential things retirees should know.
Age Pension Income and Assets Test
A common question in the mind of Aussies approaching or already in retirement is, ‘How much can they earn before it affects their pension?’ The answer depends on your income and your assets’ value, excluding your family home. The Age Pension Assets Test, a part of the means testing done by Centrelink, helps decide if retirees can get full or partial pension benefits.
The Assets Test examines how much property and other assets retirees and their partners own to decide if they can get pension benefits. Centrelink uses one of two tests, the other being the Income Test, to determine how much Age Pension people can receive.
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Age Pension Eligibility Criteria
To qualify for the Age Pension, retirees must meet specific eligibility requirements set by the Australian Government.
- The applicant must have reached the pension eligibility age, which varies depending on your date of birth.
- The claimant must satisfy Australian residency requirements.
- Individual’s total assets must be below specific thresholds to qualify for either full or partial-age pension benefits.
- The recipient’s income from all sources, including Centrelink benefits and other earnings, must also fall below certain limits.
However, the base pension rates are not going up. Changes to the income and asset limits mean many pensioners will receive higher payments.
Age Pension Assets Limits 2024
The asset limits determine whether you qualify for a full or partial-age pension. These limits vary based on your living arrangements and whether you are single or part of a couple. Here is a breakdown of 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 show that fewer Australians pass the Age Pension income test compared to the asset test. It is important to note that these limits are adjusted annually based on changes in the consumer price index.
Age Pension Income Limits 2024
According to the Centre of Excellence in Population Ageing Research, 67% of Australians with part pensions earn too much to qualify for the full pension. The remaining 33% have too many assets. 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 are designed to help older Australians gain more financial flexibility. With higher income and asset limits, more people can qualify for the Age Pension, and those already receiving it can get higher payments.
Age Pension Income and Assets Latest Changes
Starting July 1, 2024, there have been changes to the Centrelink Age Pension. These changes will help thousands of older Australians by giving them more financial flexibility and improving their quality of life. Pensioners should check their situation to see how these changes might affect their payments and make the most of the new limits.
If your assets exceed the threshold for a full pension, your pension payment reduces by $3 per fortnight for every $1,000 of assets over the limit. Once your assets surpass the threshold for a partial pension, your pension payments phase out completely.
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All We Know
Retirees can manage their assets in specific ways to qualify for the Age Pension using the comprehensive guide shared below.
- Retirees can gift assets, but there are limits on the value of assets that can be gifted without affecting pension eligibility. Gifts above these limits are assessed and counted towards the Assets Test for up to five years.
- It is crucial to inform Centrelink promptly about any changes in asset values, such as buying or selling property, to ensure accurate pension assessments.
For every dollar of income above the thresholds, the Age Pension is reduced by 50 cents. This reduction continues until the pension is phased out completely.
