Age Pension Assets Test: 2026 Thresholds Explained

The age pension assets test directly determines both whether you qualify for the Age Pension and how much you receive each fortnight. Centrelink runs two separate tests on every application — the assets test and the income test — then pays whichever produces the lower pension amount. That single rule catches more retirees off guard than almost anything else in the system.

Here is what you need to know immediately:

• Homeowner or not? Your status as a homeowner or non-homeowner determines which threshold row applies to you. The principal residence (on up to the first 2 hectares of land) is exempt from the assets test.
• Full pension limits from July 1, 2026: the limits differ by homeowner status and relationship status, with higher limits for couples and non-homeowners.
• Part pension cut-offs from July 1, 2026: part pension cut-offs vary by homeowner status and relationship status, with couples and non-homeowners having higher thresholds.
• Both tests always apply. Even if your assets sit comfortably below the limit, deemed income from financial assets can still reduce your payment through the income test.
• Check live figures at Services Australia — thresholds are indexed multiple times a year and the page is date-stamped with the current rates.

Table of Contents

• How the age pension assets test is applied step by step
• What are the official asset limits for a full and part pension?
• Which assets does Centrelink count, and what is exempt?
• How does Centrelink value assets and treat liabilities?
• How the assets test treats couples differently from singles
• How the assets test and the income test interact
• How often do thresholds change, and where do you check live figures?
• Three worked examples: how assessable assets translate into pension reductions
• What should you do next? A practical checklist
• Why scenario modelling matters for both the assets and income tests
• Key Takeaways
• What financial planners actually do with the assets test
• Aerowealth makes Age Pension modelling practical
• Useful sources
• FAQ

How the age pension assets test is applied step by step

Centrelink’s assessment follows a clear sequence. Understanding it helps you avoid the common mistake of checking only one threshold and assuming you know your payment rate.

2. Centrelink values each asset — The standard is current market value — what you could realistically receive if you sold today.

Overseas assets and most asset classes are included in step one. The assessment covers you and any eligible partner as a combined unit for couples.

Pro Tip: Always model both the assets test and the income test before making any financial decision. Restructuring assets to pass the assets test can leave the income test as the binding constraint, producing no improvement in your payment.

What are the official asset limits for a full and part pension?

Services Australia reviews and adjusts thresholds in March, July, and September each year. The figures below reflect the July 1, 2026 indexation. Always confirm current figures on the Services Australia assets test page before making decisions.

Source: Services Australia provides the official indexed figures for July 1, 2026.

Source: Services Australia provides the official indexed figures.

A few things to read correctly in this table. Couple figures are combined totals, not per person. If your combined assets fall between the full-pension limit and the part-pension cut-off, you receive a reduced (part) pension calculated using the $3.00-per-$1,000 taper. Assets above the cut-off mean no pension at all. Transitional rules may apply if you were already receiving a pension before certain legislative changes — Services Australia can confirm whether a transitional rate applies to your specific case.

Threshold check: thresholds are reviewed in March, July, and September — three times a year. A change of a few thousand dollars in your assessable assets near a cut-off point can shift your eligibility within a single indexation cycle.

Which assets does Centrelink count, and what is exempt?

Most things you own count. The Services Australia asset types page lists the full categories, but the practical breakdown is:

Included in the assets test:

• Bank accounts, term deposits, and cash
• Shares, managed funds, and exchange-traded funds
• Investment properties (market value minus any outstanding mortgage on that property)
• Superannuation balances once you reach Age Pension age
• Account-based pensions and allocated pensions
• Annuities (with some exceptions — see below)
• Vehicles, caravans, and boats
• Home contents and personal effects (assessed at garage-sale value, not replacement cost)
• Business interests and farming assets
• Cryptocurrencies and digital assets
• Overseas assets (including property and bank accounts held abroad)
• Loans you have made to other people (money owed to you)

Exempt or treated differently:

• Your principal place of residence, including up to the first 2 hectares of surrounding land
• Certain prepaid funeral expenses and funeral bonds up to the exempt limit
• Compensation payments that are specifically protected under legislation
• Some lifetime income streams purchased after July 1, 2019 — only a percentage of the purchase price is assessed, and that percentage can decrease over time. Industry guidance notes that certain lifetime annuities may have only 60% of their purchase price assessed initially, with a lower percentage applying after the annuitant reaches an older age or a set period passes.

Pro Tip: Superannuation held by a partner who has not yet reached Age Pension age is not assessed — but it will be once they do. Model that transition date now, not when it arrives. Also check crypto holdings and any personal loans you have made to family members; both are assessable and frequently overlooked.

How does Centrelink value assets and treat liabilities?

Centrelink uses current market value as its standard: the price a willing buyer would pay today in an arm’s-length transaction. For most assets, that means:

• Bank accounts and term deposits: current balance, including accrued interest
• Shares and managed funds: current market price or unit value
• Investment property: realistic sale price in the current market, not the purchase price or insured value
• Life insurance and investment bonds: surrender or redemption value
• Overseas assets: converted to Australian dollars at the current exchange rate

How liabilities work. An outstanding mortgage on an investment property is deducted from that property’s market value before Centrelink counts it. A mortgage on your principal home does not reduce any assessable asset figure because the home is already exempt from the test entirely.

Worked calculation — investment property with a mortgage:

1. Investment property market value: $650,000
2. Outstanding mortgage on that property: $120,000
3. Assessable asset value: $650,000 minus $120,000 = $530,000

That $530,000 then combines with your other assessable assets to produce your total assessable figure.

Pro Tip: Keep written evidence of property valuations — a recent sales appraisal or independent valuation report. Centrelink can request supporting documentation during a review, and having it ready avoids delays.

How the assets test treats couples differently from singles

For couples, Centrelink combines both partners’ assets into a single total and compares that total against the couple thresholds in the table above. The payment is then calculated for each partner individually based on the combined assessable figure.

Common couple scenarios and which threshold applies:

• Both partners are homeowners and both are eligible: use the couple homeowner row (combined limit of $499,000 for a full pension from July 1, 2026).
• One partner is eligible, the other is not yet of Age Pension age: Centrelink still assesses combined assets but applies specific rules for the eligible partner’s payment. The ineligible partner’s super balance is not assessed until they reach Age Pension age.
• Illness-separated couples: if you and your partner live apart due to illness (for example, one partner is in aged care), a separate threshold row applies with a higher part-pension cut-off.
• Non-homeowner couples: the combined full-pension limit rises to $741,000 and the cut-off to $1,342,000.

Each partner receives their own fortnightly payment, but both payments are calculated from the same combined assessable asset figure. If one partner’s circumstances change — a new asset, a sale, a relationship change — the combined assessment changes for both.

Pro Tip: Tell Centrelink immediately when your relationship status changes. A separation, a partner’s death, or a move into aged care each triggers a reassessment using different threshold rows, and the payment difference can be significant.

How the assets test and the income test interact

Centrelink calculates your pension under both tests and pays the lower result. This is the rule that most retirees underestimate when planning.

The income test uses deeming to calculate income from financial assets. Rather than counting actual returns, Centrelink applies a deemed rate to your financial asset balances. For 2026, industry guidance notes the lower deeming rate applies to the first $66,800 (singles) or $110,600 (couples) of financial assets, with a higher rate applying above those amounts.

The second scenario catches people who reduce assessable assets expecting a higher pension, only to find that deemed income from remaining financial assets keeps the income test as the binding constraint. Experts consistently flag this as the most common planning mistake.

Pro Tip: Before restructuring any asset, model the income test outcome alongside the assets test. Account-based pension drawdowns, super balances, and term deposits all feed into deemed income. A retirement income planning guide can help you see how different income streams interact with both tests.

How often do thresholds change, and where do you check live figures?

Thresholds are reviewed in March, July, and September each year. That means your eligibility or payment rate can shift three times in a single year without any change to your own assets.

Key points on indexation:

• The July 1, 2026 thresholds are the most recent set (figures in the table above).
• Indexation typically adjusts thresholds upward in line with movements in the Consumer Price Index and other benchmarks.
• A retiree sitting just above a full-pension threshold in March may fall below it after the July indexation without selling a single asset.
• The Services Australia assets test page is date-stamped with the current effective date — always check it before any planning decision.

Practical rule: schedule a threshold check in late June, late February, and late August each year — just before each indexation date. A five-minute check can confirm whether your position has changed.

Pro Tip: Set a calendar reminder for each indexation month. If you use a modelling tool, re-run your scenarios after each update so your projections stay current.

Three worked examples: how assessable assets translate into pension reductions

These examples use the July 1, 2026 thresholds. They are illustrative calculations, not financial advice.

Example 1: Single homeowner near the full-pension threshold

1. Total assessable assets: an example figure
2. Full-pension threshold applies as per Services Australia’s current rates
3. Excess above threshold: assessed asset amount above the threshold
4. Taper reduction: for every $1,000 above threshold, pension reduces by an indexed rate (typically $3.00 per $1,000)
5. Maximum single pension: reduced accordingly based on excess assets

Example 2: Couple homeowner between full and part thresholds

1. Combined assessable assets: an example figure
2. Full-pension threshold applies as per Services Australia’s current rates
3. Excess: combined assets above threshold
4. Taper reduction: calculated applying the official taper rate to excess assets
5. Each partner’s payment is reduced proportionally

Example 3: Single non-homeowner with investment property and mortgage

1. Investment property market value: an example figure
2. Outstanding mortgage on that property: an example figure
3. Net assessable property value: market value minus mortgage balance
4. Other assets (bank accounts, shares): an example figure
5. Total assessable assets: sum of net property value and other assets
6. Full-pension threshold applies as per Services Australia’s current rates
7. Result: eligibility assessed by comparing total assets with the threshold (subject to income test)

What should you do next? A practical checklist

Work through these steps in order before contacting Centrelink or lodging a claim.

1. List every asset you own. Include bank accounts, super, shares, property, vehicles, crypto, overseas holdings, and any loans made to others. Use the Services Australia asset types page as your checklist.
2. Use the Centrelink Payment Finder at centrelink.gov.au to check estimated payment rates.
3. Prepare to report changes — You must notify Services Australia if your financial assets increase by $2,000 or more, or your non-financial assets increase by $1,000 or more.

Reporting obligations and penalties. Failing to report a threshold-crossing change can result in overpayments that Centrelink will recover, and in serious cases, penalties apply. The reporting thresholds are not large: a $2,000 rise in a bank balance or a $1,000 rise in the value of a vehicle triggers a notification requirement.

On gifting. If you transfer assets to reduce your assessable total, gifting rules apply. Amounts above $10,000 in a financial year or $30,000 over a rolling five-year period may continue to count as assessable assets for five years from the date of the gift. Gifting to qualify for a higher pension without understanding these deprivation rules is one of the most expensive mistakes retirees make.

Why scenario modelling matters for both the assets and income tests

A one-off calculation using today’s figures is not enough. Thresholds change three times a year, asset values move, and the income test can shift independently of the assets test. A good modelling tool needs to handle all of it simultaneously.

Features worth prioritizing in any modelling tool:

• Exportable reports: — produces documentation you can keep with your Centrelink records or share with an adviser

For complex decisions — selling a property, restructuring super, purchasing an annuity — modelling tools are a starting point, not a substitute for personalized advice from a licensed financial adviser. The Australian retirement planning landscape rewards those who model before they act.

Pro Tip: Use a tool that tracks the $2,000 and $1,000 reporting thresholds and flags when a projected asset change crosses them. That documentation habit alone reduces the risk of inadvertent non-reporting.

Key Takeaways

The age pension assets test affects both eligibility and payment rates, and Centrelink always applies both the assets test and the income test, paying whichever produces the lower result.

What financial planners actually do with the assets test

Most retirees arrive at an adviser’s desk having checked only the assets test threshold and concluded they know their pension rate. They almost never do. The income test — specifically the deeming rules applied to account-based pensions and term deposits — is the binding constraint far more often than people expect, and it is invisible until you run both calculations side by side.

The practical adviser workflow is not complicated, but it is disciplined. First, establish a complete asset inventory with documented valuations. Second, run both tests with current thresholds and current deeming rates. Third, stress-test the result against three-year projections: what happens if property values fall 10%, if the super balance draws down at a higher rate, or if indexation moves the threshold by $15,000? That third step is where most DIY calculations fall apart, because a static snapshot tells you nothing about whether your position is stable or fragile.

The gifting rules deserve particular attention. Retirees who transfer assets to family members to reduce their assessable total often discover two years later that those gifts are still counted under the five-year deprivation rule, and they have permanently reduced their financial buffer without gaining any pension benefit. The trade-off between a higher pension payment and a smaller personal asset base also needs honest modelling — a larger pension payment is worth less if it comes at the cost of the financial resilience to handle an unexpected health expense.

One recommendation that holds across almost every situation: run a three-year forward scenario before making any structural change. Include projected indexation, realistic asset returns, and the likely trajectory of your super drawdown. The picture that emerges is almost always more nuanced than a single-year snapshot suggests.

Aerowealth makes Age Pension modelling practical

Knowing the rules is one thing. Seeing how they play out across your specific assets, super balance, and property position is another. Aerowealth is built for exactly that gap: it runs both the assets test and the income test simultaneously, applies current indexed thresholds, and lets you compare scenarios side by side without rebuilding a spreadsheet from scratch each time.

For Age Pension planning specifically, Aerowealth handles net property calculations (market value minus mortgage), gifting and deprivation tracking across the five-year window, annuity assessment percentages, and super drawdown projections that feed directly into the income test. The side-by-side scenario feature is where most users find the real value: you can test “sell the investment property” against “keep it and draw down super faster” and see which produces a better pension outcome under both tests, not just one.

The free plan gives you enough to check your current position. The Pro plan adds indexation forecasting, bridge-year modelling for early retirees, and exportable reports you can share with a financial adviser or keep with your Centrelink records. Model your Age Pension scenarios at aerowealth.net and see where you actually stand before your next Centrelink review.

This content is general information only and does not constitute financial advice. Confirm current thresholds and your personal eligibility with Services Australia or a licensed financial adviser.

Useful sources

Official and authoritative pages to check for live thresholds and deeper reading:

• Services Australia: Assets test for Age Pension — the primary source for current indexed thresholds, date-stamped with the effective date
• Services Australia: Asset types — full list of included and exempt asset categories, plus reporting obligations
• Services Australia: Real estate assets — specific guidance on how property is valued and assessed
• Centrelink Payment Finder — estimate your payment rate based on your circumstances
• SuperGuide: Am I eligible for the Age Pension? — clear explainer of eligibility criteria with current threshold tables
• Aerowealth retirement modelling — model both the assets test and income test with your own figures

For live figures, always go to Services Australia first. Industry explainers are useful for understanding the rules, but they may lag an indexation cycle.

FAQ

How many assets can I have and still get the Age Pension?

From July 1, 2026, a single homeowner can have up to $733,500 in assessable assets for a part Age Pension; the full pension limit is $333,000. Single non-homeowners can have up to $977,500 in assets for a part pension with a full pension limit of $567,250. Couple homeowners have a full-pension limit of $499,000 combined and a part-pension cut-off of $1,100,000; couple non-homeowners have a full-pension limit of $741,000 and a part-pension cut-off of $1,342,000. These thresholds are set by Services Australia.

How much cash can I have in the bank and still get a full pension?

There is no separate cash limit — bank balances count toward your total assessable assets alongside all other asset types. A single homeowner needs total assessable assets below $333,000 (from July 1, 2026) to receive the full pension, and Centrelink also deems income from those bank balances under the income test.

Can you get a pension if you have $1 million in assets?

It depends on your situation. A couple who own their home and hold assessable assets below the indexed couple homeowner part-pension cut-off may still receive a part pension. A single homeowner with assessable assets exceeding the indexed single homeowner cut-off would not be eligible.

How much savings can a pensioner have in the bank in Australia?

Savings (bank accounts and term deposits) are included in total assessable assets with no separate exemption. The relevant limit is your total assessable asset figure compared to your threshold row. You must also notify Centrelink if your financial assets increase by $2,000 or more, as reporting obligations apply regardless of whether you are near a threshold.

Does superannuation count toward the assets test?

Yes — once you reach Age Pension age, your superannuation balance is assessable under the assets test. A partner’s super is not assessed until that partner also reaches Age Pension age, but that transition date should be modelled in advance since it can materially change a couple’s combined assessable total.

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