Understand the two Age Pension tests
Age Pension eligibility depends on age, residence and means testing. Services Australia applies both an assets test and an income test, and the test producing the lower payment generally determines the result. Thresholds and rates are reviewed regularly, so a figure copied from an old article can be wrong within months.
Most financial assets are assessed under deeming rules for the income test rather than solely on the income actually earned. The principal home is generally exempt from the assets test, but homeowner and non-homeowner thresholds differ. Other property, vehicles, contents, financial investments and some gifting can count.
How super can be assessed
Super treatment can depend on your age, whether you have reached Age Pension age and whether money is in accumulation or an income stream. Your partner’s age and accounts can also matter. Do not assume that leaving money in super always keeps it outside the means tests.
Account-based pensions are assessed using current social-security rules, while some older income streams may have grandfathered treatment if strict continuity conditions remain satisfied. Changing or consolidating a grandfathered product without advice can permanently alter the assessment.
Plan with current data and report changes
Use Services Australia’s current Payment and Service Finder or Financial Information Service and gather balances, account statements, debts and partner details. Model a range because markets, withdrawals and indexation will change the result. A small reduction in assets does not always create an equal increase in pension.
Report required changes on time and keep records of valuations and transactions. Gifting money simply to qualify can remain assessable above limits and reduce your own safety buffer. Coordinate super withdrawals with tax, housing, aged care and estate plans before acting.
Quick reference
Key things to remember
- Services Australia applies both an income and an assets test and generally uses the one producing the lower payment.
- Your principal home is generally exempt from the assets test, while other assets are assessed.
- Account-based pensions are subject to specific deeming and assessment rules.
- Thresholds are indexed and household status matters.
Put it into practice
Your next steps
- 01
Use the Services Australia Payment Finder.
- 02
List assets and income for both partners.
- 03
Check current thresholds immediately before applying.
- 04
Consider the free Financial Information Service for general guidance.
Check the source
Official information
Super and tax rules change. These primary sources are the right place to verify the details before you act.