When assessing eligibility for the aged pension, applicants are given an income test and an assets test – the test that produces the least amount of pension is the one used.
Some assets are exempt – these include the family home, assets in superannuation under pension age, funeral bonds up to $15,000 for a single bond, an accommodation bond paid to an aged care facility, and gifts within the allowable limits.
Assessable financial assets, such as superannuation, bank savings, shares, and managed funds, are assessed at their face value for the assets test. They are then assigned a deemed income for the income test. A separate deeming calculator is available on this website. Keep in mind that deeming is not relevant for pensioners who are asset-tested.
Home contents, cars and boats are valued at market value – not replacement value.
The assets test has different thresholds for homeowners and non-homeowners.
Income Test
From 20 September 2024, a single pensioner can earn $212 a fortnight and still be eligible for the full single pension of $1144.40 a fortnight, including all supplements. They can also earn up to $460 a fortnight from personal exertion – this is not included in the income test (refer to Work Bonus below). Once income exceeds $212 a fortnight, the pension reduces by $0.50 for every additional dollar earned.
From 20 September 2024, a pensioner couple can earn $372 a fortnight combined and still be eligible for the full pension of $1725.20 a fortnight, including all supplements. They can also earn up to $460 a fortnight each from personal exertion – this is not included in the income test (refer to Work Bonus below). Once income exceeds $372 a fortnight, the pension reduces by $0.50 for every additional dollar earned.
Work Bonus
From 1 Jan 2024, new pensioners immediately received $4,000 into their income bank, which they could use alongside the normal $300 per fortnight exemption. This did not apply to existing pensioners before 1 Jan 2024.
For these new pensioners, with the $4,000 already in their income bank, if they just earned $460 per fortnight for 12 months, it will all be excluded as it would use up the $300 pf exemption plus the $4,000 income bank.
Assets Test
From 20 September 2024, the full pension is available, under the assets test, for homeowner singles whose assessable assets are under $314,000 – for homeowner couples the number is $470,000. The numbers for non-homeowners are $566,000 and $722,000 respectively.
Once assessable assets exceed the lower threshold, the pension reduces by $3 fortnight for each $1000 by which assessable assets exceed the lower threshold.
A single homeowner can have up to $695,500 of assessable assets and receive a part pension – for a single non-homeowner the higher threshold is $947,500. For a couple, the higher threshold to $1,045,500 for a homeowner and $1,297,500 for a non-homeowner.
Please note: Calculated answers include all supplements and if calculated for a couple is the joint pension. It is also assumed that both parties are of pensionable age.