In January, March, July and September of each year, the limits and cut off points in relation to the Age Pension Assets Test are evaluated. To avoid any confusion surrounding your eligibility for the pension payment you may be entitled to, it is integral for you to understand how the recent assets test changes may impact you.
Age Pension Assets Test Explained
For those who are in or nearing the stages of retirement, the amount of assets you can possess before it begins to impact your pension, is dependent on the total value that resides within your savings and other assets, as well as your income.
In order to determine your potential eligibility for the Age Pension payment, the market value of any assets you are in ownership of will be assessed by Centrelink. In conjunction with the assets test, it is also required that you pass the Age Pension income test and meet the residence rules.
Asset Test Limits for a Full Age Pension
The most recent age pension requirements are detailed in the table below, which depicts the current limits of the Asset Test. To qualify for the Full Age Pension payment, it is required that the total value of your assets are below the thresholds shown in this table.
- Current limits came into effect as of 1 July 2021 and apply until 30 June 2022
- Previous limits came into effect as of 1 July 2021 and were applicable until 30 June 2021
Asset Test Limits for a Part Age Pension
If your assets total or exceed the value of those in the table above, it may be that you’re still able to access a Part Age Pension Payment. The total amount of assets you can be in possession of, whilst still qualifying to receive any Part Age Pension can be seen in the table below.
- Current limits came into effect as of 20 September 2021 and apply until 19 March 2022
- Previous limits came into effect as of 1 July 2021 and were applicable until 19 September 2021
In line with the previous assets test changes that were put in place as of the 1 of July 2021, your Part Pension payment is subject to cancellation if the total of your assets exceeds the cut off point for the situation you are in. The cut-off point will be even higher if you receive rent assistance in conjunction with your pension.
Yield Financial Planning is Here To Help
We hope this provided you with some clarity in regards to the most recent assets test changes in relation to the age pension. If you have any queries or require assistance with any of the topics above, please feel free to get in touch with one of our financial advisors.
