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Book a FREE consultation
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Get started with a free strategy consultation and receive a copy of the Good Fortune Guide – written by James McFall, Managing Director Yield FP and 2020 National Finalist Certified Financial Planner of the Year to help educate you on your Financial Plan.

Assets Test Changes Implemented In 2021

Retirement Planning Successful retirement planning requires your investments to last your entire life after-work, which requires a long term and well thought out structure for you to achieve this.

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.

asset test changes for full age pension

 

 

 

 

 

  • 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.

assets test changes for part age pension

 

 

 

 

 

 

  • 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.

Important Note
Any information provided here is general advice only and does not consider your objectives, financial situation or needs. This information should not be taken as comprehensive and does not constitute legal or financial advice. You should seek legal, financial or other professional advice before relying on any content. Yield Financial Planning is not responsible to you or anyone else for any loss suffered in connection with the use of this information. Information is only current at the date initially published.
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About Yield - Financial Planner Melbourne

Who we serve – We help time poor professionals and business owners who intuitively know they should be doing more to improve their financial position and are seeking an expert to guide them on financial planning strategies. Our clients want personalised financial planning advice and to feel empowered and confident that they can achieve a secure transition to retirement.

What we do – We gain a deep understanding of your current financial position and preferences, what you value and want to achieve. We then help you develop a highly personalised financial plan, to show you how to make your money work harder for you. Ongoing we regularly monitor and measure progress against your plan projections, to show you how you’re tracking and help you manage change to your advantage.

How we do it – We apply our proven expertise in investment markets (Shares & Property), Tax and Debt structuring, Retirement Planning, Risk management and Estate planning, to help you reorganise the way you use your money to achieve your desired outcomes.

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