If you are eligible for a Centrelink/Veterans’ Affairs payment, including the Age Pension, how much you receive will depend on an asset and income test assessment. The lower payment under the two tests is the amount payable.
Assessable Assets for the Assets Test
Assessable Assets are assets assessed by Centrelink under the assets test to determine your Centrelink/Veterans’ Affairs, including Age Pension, entitlements. Centrelink assesses most assets you own. There are some assets not assessed however, most notably being your Principle Residence.
What is included in the Centrelink Asset Test?
- Cash in the bank and any other financial investments
- Real estate, including holiday homes (not including the principal home)
- Motor vehicles
- Boats and caravans (which are not used as the home)
- Household contents and personal effects
- Superannuation and rollover funds by a person who is Age Pension age or older
- Income stream products (although some exemptions for non-commutable products purchased before 20 September 2007)
- Any gifts made that are worth more than $10,000 in a single year or more than $30,000 in a five year period
- Businesses and farms, including goodwill (where goodwill is shown on the balance sheet)
- The surrender value of life insurance policies
- The value of a life interest created by a partner or their death
- Loans made to family trusts, members of the family, organisations etc.
- Collections held for trading, investment or hobby purposes.
- The value of entry contribution to a retirement village if the amount paid is less than the difference between the homeowners’ and non-homeowners’ assets limits.
- The attributed value of a private trust or private company if deemed to be a controller of that trust or company or an associated party is the controller, or the person has transferred money into the trust or company.
What is not included in the Centrelink Asset Test?
- Principal Residence (and surrounding land up to 2 hectares)
- Superannuation and rollover funds by a person who is under Age Pension age
- A cemetery plot and a prepaid funeral
- Funeral bonds (up to 2) that cost less than the allowable limit (currently $15,500)
The value of assets is what you would get for them if you sold them (net market value) not what it would cost to replace them. Any debt secured against an asset is generally deducted from the value of that asset.
The Assets Test
Pension payments include
- Age Pension
- Carer Payment
- Disability Support Pension
Centrelink Asset Test Limits
For the full pension, assessable assets must be less then :
|
Status
|
Homeowner
|
Non-Homeowner
|
|---|---|---|
|
Single
|
$314,000
|
$566,000
|
|
Couple Combined
|
$470,000
|
$722,000
|
|
Couple, Illness Seperated
|
$470,000
|
$722,000
|
Assets need to be below the certain amounts to qualify for the full age pension under the assets test. The pension will reduce by $3.00 per fortnight (single or couple combined) for each $1,000 of assets over the threshold
For a part pension, assessable assets must be less then :
|
Status
|
Homeowner
|
Non-Homeowner
|
|---|---|---|
|
Single
|
$695,500
|
$947,500
|
|
Couple Combined
|
$1,045,500
|
$1,297,500
|
|
Couple, Illness Seperated
|
$1,233,000
|
$1,485,000
|
No pension is payable once assets reach the upper cut-off thresholds above.
Applying for, assessing and maximising your Centrelink benefits forms part of your retirement plan. At Progressive Financial Solutions, we offer tailored holistic retirement financial planning services to help our clients fund their desired retirement lifestyle. You can read more about our retirement planning services here.