The Age Pension is not paid to everyone who reaches Age Pension age. To be eligible for the Age Pension, you need to meet the age and Australian residency requirements, as well as the Income test and Assets test.
The Assets test looks at what you own and can affect both whether you qualify for the Age Pension and how much you receive. This guide explains what is counted, what is exempt, the limits that apply and what happens when your assets change.
How does the Assets test work?
Services Australia adds up the value of your assessable assets, including assets you own jointly with your partner, and compares the total with the limits that apply to your situation.
- If your assets are at or below the limit for a full pension, the Assets test does not reduce your pension.
- If your assets are above the full pension limit, your pension falls by $3 a fortnight for every $1,000 over the limit.
- Once your assets reach the applicable cut-off for a part pension, you are generally no longer entitled to the Age Pension under the Assets test. Higher cut-offs can apply if you receive Rent Assistance.
The Income test is applied separately. Services Australia calculates your pension under both tests, and the test that results in the lower pension determines how much you are paid.
The most important exemption is your family home. It is not counted under the Assets test, regardless of how much it is worth. Because the home is exempt, homeowners have lower assets limits than non-homeowners. The limits for non-homeowners are $267,000 higher.
The limits that apply to you depend on:
- whether you own your home
- whether you are single or part of a couple
- whether you and your partner live apart because of illness.
If you have a partner, the couple limits apply even if only one of you is eligible for the Age Pension.
Assets limits for the full pension (from 1 July 2026)
| Living arrangement | Homeowner | Non-homeowner |
|---|---|---|
| Single person | $333,000 | $600,000 |
| Couple (combined) | $499,000 | $766,000 |
Source: Department of Social Services. Limits apply from 1 July 2026.
Assets limits for a part pension (from 20 September 2026)
| Living arrangement | Homeowner | Non-homeowner |
|---|---|---|
| Single person | $745,750 | $1,012,750 |
| Couple (combined) | $1,121,000 | $1,388,000 |
| Couple separated due to illness (combined) | $1,324,500 | $1,591,500 |
Source: Department of Social Services. Limits apply from 20 September 2026.
For example, a single homeowner with $433,000 of assessable assets is $100,000 above the full pension limit. Their pension is therefore reduced by $300 a fortnight under the Assets test, from the maximum of $1,237.70 to $937.70. If the Income test produces a lower pension, the lower rate applies instead.
The full pension assets limits are indexed on 1 July each year. The part pension cut-offs are also reviewed in March, July and September and can change when the assets limits or Age Pension rates change.
What is included in the Assets test?
Most things you own are counted under the Assets test, apart from your family home and some other exemptions. Assets are still counted if you own only part of them or own them jointly with someone else. Money you have lent to someone, or a debt owed to you, is also counted.
Assets that are counted include:
- Real estate other than your home, including investment properties and holiday homes.
- Home contents and personal effects, such as furniture, electrical goods, jewellery and collections. These are valued at what you could expect to receive if you sold them, rather than their replacement or insured value.
- Superannuation, once you reach Age Pension age. If your partner is younger, their superannuation is generally not counted while it remains in accumulation phase. However, if it is paying them an income stream, such as an account-based pension, it is counted.
- Vehicles, including cars, boats and caravans.
- Financial investments, including money in bank accounts, term deposits, shares and managed investments.
- Business assets. If you are a sole trader or in a partnership, your share of the business assets may be counted. Different rules apply to companies and trusts, including rules that look at the level of control you have over the entity.
What assets are not included in the Assets test?
Your principal home is the most important asset that is not counted. This generally includes the home you live in and up to two hectares of land on the same title, although different rules can apply to larger properties.
Other assets that may be exempt include cemetery plots, prepaid funerals and funeral bonds up to the applicable limit. Some specialised income streams and other assets may also receive full or partial exemptions.
What if I have loans against my assets?
A debt secured against an assessable asset can reduce the value of that asset for the Assets test. For example, if you own an investment property worth $500,000 and have a $100,000 loan secured against it, the assessable value may be $400,000.
However, a loan secured against an exempt asset such as your home generally does not reduce the value of your other assessable assets. How a debt is treated can depend on what it is secured against and what the borrowed money was used for.
What about my assets outside Australia?
Assets you own outside Australia are also counted under the Assets test. Their value is converted into Australian dollars when they are assessed.
What if my assets change?
If you receive the Age Pension, you generally need to tell Services Australia about changes to your circumstances that could affect your payment. This can include buying or selling an asset, receiving an inheritance or giving money or assets away.
A change in your assessable assets can increase or reduce your Age Pension rate.
Can I reduce my assessable assets?
There are legitimate ways your assessable assets can fall, but reducing your assets does not necessarily leave you better off overall. Tax, investment returns, access to your money and the Income test can all affect the outcome.
- Spending money on your home. Because your principal home is exempt from the Assets test, using assessable savings for renovations or improvements to your home reduces your assessable assets.
- Gifting. You can give away up to $10,000 in a financial year, and up to $30,000 over five financial years, without it affecting your pension. Amounts above these limits continue to be counted as your asset, and are deemed to earn income under the Income test, for five years after the gift.
- Contributing to a younger partner’s superannuation. If your partner is under Age Pension age, money held in their superannuation account in accumulation phase is not counted under the Assets test. This means a contribution to their superannuation reduces your assessable assets. Contribution caps, eligibility rules and tax consequences need to be considered before doing this.
It is also important to remember that reducing your assessable assets does not necessarily increase your Age Pension. The Income test may still determine the rate you receive.
Summary
The Assets test looks at most of the assets you own, but your principal home and some other assets are exempt. If your assessable assets are below the full pension limit, the Assets test does not reduce your pension. Above that limit, your pension falls by $3 a fortnight for every $1,000 of additional assets until you reach the part pension cut-off.
Services Australia also applies the Income test, and whichever test results in the lower pension determines how much you receive.
The information in this guide is general in nature.