Amanda Hardy Lai

Amanda has worked in the financial services industry since 1998 and has been providing financial advice since 2006. Her career has been driven by a commitment to ensuring the highest standards of financial advice and client care. To book a consultation with Amanda click here.
Assets test explained: What counts and what doesn’t?

Assets test explained: What counts and what doesn’t?

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If you’re applying for the Age Pension — or thinking about it — one of the key things Centrelink will assess is your assets. The assets test helps determine not only whether you qualify for the fortnightly payments, but also how much you’ll receive. 

But what exactly counts as an asset? And how much can you have before your payments are reduced or cut off altogether?

In this article, we explain how the assets test works, what the current thresholds are, and what you can do to manage your position confidently.

Tax and the Age Pension: When to lodge, or skip

Tax and the Age Pension: When to lodge, or skip

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Navigating tax obligations can be tricky, especially for retirees relying on the Age Pension. While many assume they’re exempt from lodging tax returns, certain situations may require action. This article highlights real questions asked by our members – and the practical answers that help avoid surprises.

Is the Age Pension taxable?

Yes, the Age Pension counts as taxable income. However, if it’s your only source of income and no tax has been withheld from it, you generally don’t need to lodge a return.

Most retirees avoid paying tax because their total income falls under the tax-free threshold—especially when the Seniors and Pensioners Tax Offset (SAPTO) is applied.

Can you still work and get the Age Pension?

Can you still work and get the Age Pension?

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Retirement isn’t always a full stop to earning income. Plenty of older Australians keep working — some for financial reasons, others for social connection, personal fulfilment, or simply because they enjoy it.

But how does paid work affect the Age Pension? That’s where things can get confusing. The current system is often criticised for being complex and, at times, discouraging older people from staying in the workforce.

Government reports have recognised both the opportunities and the barriers to this employment. The 2023 Intergenerational Report highlights that older Australians are healthier, living longer, and increasingly participating in paid work. Meanwhile, the 2021 Retirement Income Review acknowledged that the complexity of Age Pension settings and frequent policy changes can create uncertainty and erode confidence in working and contributing to the superannuation system.

Advocates such as the Actuaries Institute and National Seniors Australia have called for simpler rules — or even a universal pension. But if and until that happens, it’s worth understanding how the system currently works, especially if you’re considering earning some extra income.