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.
What is the assets test?
Centrelink uses two main tests to assess your Age Pension eligibility: the income test and the assets test. You must pass both tests. Your eligibility is based on whichever test gives you the lower payment. So even if you ‘pass’ one, the other might reduce your entitlement.
The assets test looks at the value of what you own — excluding your home if you live in it. Your assessable assets are measured against a set of thresholds to determine if you’re eligible for a full Age Pension, a part Age Pension, or none at all.
What counts as a financial asset?
Centrelink counts most things you own as assets, including:
- Money in bank accounts, term deposits and cash
- Shares, managed funds and cryptocurrencies
- Superannuation (once you reach Age Pension age)
- Account-Based Pensions and other income streams
- Investment properties and holiday homes
- Vehicles, boats and caravans
- Business interests
- Household contents, jewellery and collectables
- Overseas assets
- Gifts of money or property over the allowable limit
- Loans you’ve made to others, including informal family loans or business loans, are counted as assets, even if repayments haven’t started.
Centrelink assesses assets at their current market value — what someone would reasonably pay for them today, not what you originally paid.
If you’re a part of a couple, your combined assets are counted – regardless of whose name they’re held in. This includes joint accounts, and assets held separately by each partner.
What isn’t counted?
Centrelink excludes some assets from the Age Pension assets test, including:
- The home you live in (your principal residence), and any associated mortgage
- Superannuation held in a younger partner’s name, while they are under Age Pension age and the funds remain in accumulation phase
- Prepaid funerals and burial plots, if fully paid and non-refundable
- Certain compensation payments or structured settlements protected by law
How investment properties are assessed
If you own a rental or investment property, Centrelink will assess its current market value as an asset. This is the amount you would reasonably expect to receive if you sold the property today — not its purchase price or what it might be worth in the future. Any associated mortgage is deducted from the property’s value when calculating your total assets.
For example, if your investment property is worth $500,000 and has a mortgage of $200,000, the net assessable asset is $300,000. This amount is counted under the assets test.
In addition to the value of the property itself, any rental income you receive is also assessed under the income test, with allowable deductions for expenses. So investment properties can affect both your assets and your income assessment — and may reduce your Age Pension entitlement under either test.
What about assets held in trusts or private companies?
If you have assets or income held in a private trust or company, Centrelink will apply what’s called a control test to determine if these should be included in your assessment.
If you are deemed to have control or significant influence — for example, as a director, trustee, or someone who can benefit from the structure — Centrelink may treat part or all of the underlying assets as yours. This also applies to any income the trust or company earns.
Control isn’t just about legal ownership. Even if you’re not listed as the legal owner, if you can make decisions or benefit financially, Centrelink may still count those assets as part of your personal situation.
This area can get complex, so if you have a trust or private company, it’s worth getting advice to understand how it may affect your Age Pension eligibility.
Current thresholds as of March 2025
Centrelink applies different thresholds depending on your relationship status and whether or not you own your home. These determine the cut-off points for full and part Age Pension payments.
For homeowners:
- Single: full Age Pension if assets are below $314,000; no Age Pension if above $697,000
- Couple (combined): full Age Pension if assets are below $470,000; no Age Pension if above $1,047,500
For non-homeowners:
- Single: full Age Pension if assets are below $566,000; no Age Pension if above $949,000
- Couple (combined): full Age Pension if assets are below $722,000; no Age Pension if above $1,299,500
If your assessable assets fall between the lower and upper limits, you may be eligible for a part Age Pension.
How the taper rate works
Once your assets exceed the full Age Pension threshold, your payment is reduced at a set rate — known as the taper rate. For every $1,000 you have over the full Age Pension limit, your fortnightly Age Pension is reduced by $3.
For example, a single homeowner with $350,000 in assessable assets is $36,000 over the threshold. This means their fortnightly Age Pension would be reduced by $108.00 (36 x $3) or $2,808 per annum.
This reduction continues until you reach the upper threshold, at which point your Age Pension payment ceases.
What about the family home?
Your principal home is exempt from the assets test, regardless of its market value. However, if you are a homeowner, you’re subject to a lower assets threshold. This means that someone who rents may be able to have more assets and still qualify for an Age Pension.
If you sell your home, for example to downsize or move into aged care, the proceeds may count as assets. However, if you intend to buy a new home, you may receive a 24-month exemption (plus a possible extension) on those funds under the ‘sale proceeds exemption’ rule. After that time, if you haven’t bought a new home, those proceeds are fully assessable.
Understanding gifting rules
If you give away assets or money, Centrelink may still count them as yours if you exceed the allowable gifting limits. You can give:
- Up to $10,000 per financial year, and
- No more than $30,000 over a rolling five-year period
Any gifts above these limits are counted as part of your assets for five years from the date of the gift.
Keeping Centrelink updated
It’s important to keep your financial details with Centrelink up to date. Your Age Pension entitlement can change if:
- Your investments increase or decrease in value
- You make large withdrawals
- You buy or sell assets
- Your superannuation or income stream balance changes
Centrelink conducts regular reviews in March and September, but you’re responsible for informing them of any changes that could affect your eligibility.
What if you’re close to the limits?
Even if you’re slightly above the thresholds, it’s worth speaking to a specialist to check whether there’s any room to improve your position. In some cases, prepaying certain expenses, understanding how income streams are assessed, or correctly valuing assets can make a difference.
If you’re planning to apply for the Age Pension anytime in the future, getting a clearer picture now can help you make informed decisions about saving, investing or gifting.
The assets test plays a big role in how Centrelink determines your Age Pension entitlement. While it can seem complex, having a clear understanding of what counts as an asset — and where the thresholds sit — can help you plan more effectively for retirement. If you’re unsure how the rules apply to your circumstances, an Entitlements Consultation with a Retirement Essentials specialist can provide tailored guidance and peace of mind.
Next steps to consider
Understanding how your assets affect your Age Pension can help you plan with more clarity and confidence. If you’re unsure where you stand, it might be time to take a closer look.
You might start by asking:
- Have I checked how Centrelink values my assets – including things like super, property or overseas investment?
- Could changes I make now improve my chances of qualifying or help me retain more of my Age Pension in the future?
Was this overview helpful?
Are there any points you believe we’ve overlooked?
Sometimes, the family home (or principal place of residence) can be partly included. If it is on more than one title, any title that does not have the actual home building on is assessed. Even if on one title, any land in excess of 2 hectares is assessable (exemptions apply).
Any part of the home building that is solely used for business can also be assessed.
Other assets include the value of water rights, and taxi or fishing licences.
The whole mortgage amount is only deducted from the assessable value of a building if that building is the sole security. Where there are multiple securities, the mortgage is deducted across each of the properties in proportion to their value.
what if Grandma never updated her asset information since 2016?
She has recently gone into Aged Care and by the time a power of attorney could be organized to access her information, she’s been there for more than 2 months. she has enough pension income to pay the care fees including a moderate means tested fee.
They haven’t yet exempted her principal residence but we expect that to happen soon because her adult child is on income support and has lived there more than 5 years. (filing paperwork this week)
but Centrelink lists “financial accounts” of over $300,000. we believe that was the balance in 2016 but the account no longer exists and the money is long gone.
how do we even prove that she no longer has that asset?
Information provided by you is . helpful, informative, easy to understand.
I have a holiday home which is jointly owned by my two sisters and I. The property was valued a couple of years ago at $1.45 million dollars. If I and only I apply for at least a part pension, is the entirety of the $1.45M counted in my application or my share, i.e. $435044 (1/3)?
Hi Marcus, thankfully Centrelink will only assess your share of the property’s value as an asset given that is all you would receive if it was sold.
Thankfully..??!
Would you rather Centrelink assess the full value of the property as an asset even if you only have a right to a lesser percentage of the sale proceeds?
What happens if I move overseas, buy a residence apartment and no longer have assets in Australia? How would I be assessed?
Can I go through the entire process from overseas or have to come back to Australia and apply?
Hi Barney, assets are assessable whether held in Australia or another country so the rules and thresholds would be applied the same either way. It is best to be in Australia when you lodge the claim and if you have been living overseas prior to lodging there could be a waiting period of up to 2 years. We’d need to understand a few more specifics about your situation to properly answer you so I would recommend booking a consultation here.
Good reading. Very informative. Thank you.
My husband and I are separated and he is living in our family house. I have no income, I’m making do on a small amount of savings. Centrelink has assessed the property and valued it at $950,000. A financial settlement with my husband seems out of reach at the moment and the house doesn’t have to be sold until 12 months after a divorce. It seems based on the value of the house Centrelink has offered about 1/8 th of a single age pension.
My circumstances don’t seem to have been taken into consideration, I don’t have any income from the house and have to wait for a court order to force a sale.
I’m very anxious about how long my small savings will sustain me.
Hi Alexa, technically Centrelink are assessing your situation correctly as any property that a person has part ownership of that they do not live in is assessable as an asset. I appreciate this may not be possible given the breakdown of the relationship but Centrelink do recognise couples who are romantically separated but still live together as flat mates. So if it is at all possible for you to live in the house with your ex partner until everything is finalised the house would then be exempt from your assessment and you would still be treated and paid as a single person.
If my husband and I are separated but own our own homes and I am not working. Am I entitled to the pension. I also have$330 thousand dollars in super
Hi Sharron, there are so many factors to consider when determining eligibility we could not say with certainty in this forum with the limited information available about your situation. If you are unsure and would like to clarify how Centrelink will assess you personally then I recommend booking a consultation HERE to speak with a specialist.
I am about to reach age pension eligibility age. My wife runs a small business, and I am aware her income will count towards my assessment. Could you comment on whether her business assets are included in the assets test? We have conflicting advice from Centrelink on this. A finance specialist in Centrelink said no – there isn’t even a space on the form for business assets of partners. Other consultants say yes – all assets count by looking at a balance sheet, although only those depreciating under section 238D and not section 40. Can you clarify? Thanks in advance! 🙂
Hi David, Lock in B) your wife’s business assets will be included in the asset test. If she has a business partner(s) then only her share of the assets will be included but if it is all in her name only then it will all be included because if the business sold the assets, she’d be the one receiving the money.
hi i live on 150 acres which we have now lived here for 20yrs so is now exempt.
We have a primary producers licence but never make a profit .
I assume we are a business ? and assets would be counted? 60 sheep and tractor,yards shed
If i cancel this will it only effect that financial year?
Thanks Jo
Hi Joanne it would be best to double check your setup to make sure you have declared it to Centrelink correctly but yes those things would be assessable as either business assets or personal contents. Having said that it is based on market value so if the tractor is rusty and barely runs it’s assessable value may be quite low.
We run a bed and breakfast business from our home which Centrelink are aware of. My wife owns a property in Queensland which, again, Centrelink are aware of. My wife’s single parent daughter lives in the Queensland property, Her daughter makes some contributions to outgoings but does not pay any rent. Currently Centrelink assess the full value of the property under the assets test. Without the value of the property being included in the assets test maybe we would be entitled a pension increase. Currently we are struggling on the reduced pension.
Is there anything we can do to offset the value of the property in order to maximise our pension?
Cheers
Rob Harris