Guide
Age Pension Assets Test 2026
A single homeowner can hold up to $321,500 in assessable assets and still receive the full Age Pension, with the part pension cutting out at $697,000, as at 20 March 2025. Above the free area the pension falls by $3 a fortnight per $1,000.
Key facts at a glance
- Assets test free area as at 20 March 2025: $321,500 single homeowner, $579,500 single non-homeowner.
- Couple free area: $481,500 homeowner, $739,500 non-homeowner, combined.
- Taper rate: $3 per fortnight per $1,000 over the free area — $78 a year per $1,000.
- Cut-off points: $697,000 single homeowner, $1,047,500 homeowner couple combined.
- Your principal home and up to two hectares of adjacent land are exempt.
- Gifting is capped at $10,000 a year and $30,000 over five years.
All figures correct as at 20 March 2025, sourced from Services Australia. Next indexation: 20 September 2026.
What is the Age Pension assets test?
The assets test measures the market value of what you own, less any debt secured against it, and reduces your Age Pension once that total passes a free area set for your relationship and homeowner status. It is one of two means tests; Services Australia also applies the income test and pays whichever gives the lower rate.
The rule to remember is simple: full pension up to the free area, then $3 a fortnight less for every $1,000 of assets above it, until the payment reaches nil at the cut-off point.
How much can I have in assets and still get the pension?
| Your situation | Full pension up to | Part pension cuts out at |
|---|---|---|
| Single, homeowner | $321,500 | $697,000 |
| Single, non-homeowner | $579,500 | $955,000 |
| Couple, homeowner (combined) | $481,500 | $1,047,500 |
| Couple, non-homeowner (combined) | $739,500 | $1,305,500 |
Couples separated by illness and couples where one partner is in residential aged care have their own limits, and are usually assessed at the higher single-style rate. Services Australia sets these out on its assets test page.
What counts as an assessable asset?
- Savings, term deposits, shares, bonds and managed funds
- Superannuation and account-based pensions once you reach Age Pension age
- Investment properties, holiday homes, vacant land and farms beyond the exempt area
- Cars, caravans, boats, motorbikes and trailers
- Household contents and personal effects, at what you could sell them for
- Business assets, loans you have made to others, and money in family trusts or companies you control
- Surrender value of life insurance policies and most gifts above the allowable limits
What is exempt from the assets test?
- Your principal home and up to two hectares of adjacent land on the same title
- Pre-paid funerals and funeral bonds up to the allowable limit
- A partner's superannuation while they are under Age Pension age and not drawing it
- Some compensation payments and certain special disability trust assets
Assets Test Estimator
Enter your relationship status, homeowner status and assessable assets to see the pension impact.
Estimated result
$1,063.10 per fortnight
Under the assets test alone, before the income test is applied.
- Assets test free area
- $321,500
- Assets over the free area
- $28,500
- Reduction ($3 per $1,000)
- − $85.50 per fortnight
- Cut-off point
- $697,000
This is an estimate based on the published rules and rates of Services Australia, correct as at 20 March 2025. Confirm your actual entitlement with Services Australia — your circumstances may include assessments this tool does not model.
Worked example: Sarah, a single homeowner with $420,000 in assets
Sarah owns her home and has $420,000 in assessable assets. Her free area is $321,500, so $98,500 is over the limit — that is 98.5 lots of $1,000.
98.5 × $3 = $295.50 a fortnight of reduction, taken off the maximum single rate of $1,148.60.
Result: Sarah is estimated to receive $853.10 a fortnight under the assets test — about $22,181 a year — provided the income test does not give a lower figure.
How to work out your assets for a claim
- List every asset you and your partner own, excluding your principal home.
- Value each one at what you could sell it for today, not replacement or insured value.
- Subtract debts secured directly against an asset, such as a loan over an investment property.
- Add superannuation balances for anyone who has reached Age Pension age.
- Add gifts above $10,000 in the current year or $30,000 over five years.
- Compare the total with the free area and cut-off for your situation.
Keeping your assessment current
Tell Services Australia within 14 days if your assets change materially — selling a property, receiving an inheritance, buying a car. Listed shares and managed investments are revalued automatically each March and September, in step with the indexation of pension rates. The next indexation is 20 September 2026.
Frequently asked questions
How much can I have in assets and still get the pension?
A single homeowner keeps the full Age Pension up to $321,500 of assessable assets and a part pension up to $697,000. A homeowner couple keeps the full pension up to $481,500 combined and a part pension up to $1,047,500 combined. Figures are as at 20 March 2025.
Is my house counted in the Age Pension assets test?
No. Your principal home and up to two hectares of adjacent land on the same title are exempt. Owning that home still matters because homeowners have a lower assets test free area than non-homeowners.
How much pension do I lose for every extra $1,000 of assets?
Your Age Pension reduces by $3 a fortnight for every $1,000 of assessable assets above your free area. That is $78 a year for each $1,000, an effective rate of about 7.8%.
Is superannuation counted in the assets test?
Yes, once you reach Age Pension age your super is an assessable asset whether it sits in accumulation phase or pays an account-based pension. A partner's super is exempt only while that partner is under Age Pension age and has not started drawing it.
How are household contents and cars valued?
At what you could sell them for today, not what you paid or what they are insured for. Most households report a few thousand dollars of contents rather than replacement value, and cars are valued at private sale price.
Does gifting money reduce my assets for the pension?
Only within limits. You can gift $10,000 in a financial year and no more than $30,000 over five financial years. Anything above that is treated as a deprived asset and still counted for five years, and it is also deemed to earn income.
What assets are exempt from the Age Pension assets test?
Your principal home and up to two hectares of adjacent land, most pre-paid funeral expenses and funeral bonds up to the allowable limit, some compensation payments, and assets held in a special disability trust within the concessional cap.
Do I have to tell Centrelink when my assets change?
Yes, within 14 days of the change. Services Australia also revalues listed shares and managed investments automatically in March and September, so you do not need to report ordinary market movements yourself.
Researched and fact-checked by
researches Australian retirement and social security policy full time. Not a licensed financial adviser — every figure on this page is sourced from Services Australia or the Social Security Act 1991 (Cth).
Last reviewed: 15 September 2026
Figures as at: 20 March 2025
Next indexation: 20 September 2026
Change log: Reviewed 15 September 2026; free areas, cut-offs and the $3 per $1,000 taper re-checked against Services Australia figures correct as at 20 March 2025. Next update at the 20 September 2026 indexation.