Understanding the Disability Support Pension Assets Test
Services Australia uses an assets test to determine eligibility for the Disability Support Pension (DSP) and to calculate the payment rate. This test assesses the value of nearly all assets you own, and money in the bank (savings accounts, term deposits) is considered a financial asset and therefore included.
There is no specific cap on how much cash you can have, but the total value of all your assessable assets must fall below a certain threshold. If you exceed this threshold, your pension payment will be reduced, and if you exceed the maximum cut-off point, your pension will be cancelled altogether.
Asset Test Limits from 20 September 2025
The asset limits are regularly reviewed and updated by the Department of Social Services. The amounts depend on your homeownership status and relationship status.
| Your Situation | Assets for Full Pension | Assets for Part Pension | Pension Cut-Off |
|---|---|---|---|
| Single, Homeowner | Up to $321,500 | Up to $714,500 | More than $714,500 |
| Single, Non-homeowner | Up to $579,500 | Up to $972,500 | More than $972,500 |
| Couple (combined), Homeowner | Up to $481,500 | Up to $1,074,000 | More than $1,074,000 |
| Couple (combined), Non-homeowner | Up to $739,500 | Up to $1,332,000 | More than $1,332,000 |
| Couple, Separated by Illness (combined), Homeowner | Up to $481,500 | Up to $1,267,500 | More than $1,267,500 |
| Couple, Separated by Illness (combined), Non-homeowner | Up to $739,500 | Up to $1,525,500 | More than $1,525,500 |
It is important to remember that for couples, the asset limits apply to the combined total value of both partners' assets, not individually.
How Deeming Rules Affect Your Bank Balance
In addition to the assets test, a DSP recipient is also subject to an income test, which includes deemed income from financial assets like savings accounts. The government uses a process called 'deeming' to estimate how much income your financial assets should be earning, regardless of the actual interest rate.
- Deeming Rates: From 20 September 2025, a lower rate of 0.75% is applied to the first portion of your financial assets, and a higher rate of 2.75% is applied to the amount above this threshold.
- Thresholds: For a single person, the lower rate applies to the first $64,200 of financial assets. For a couple, the lower rate applies to the first $106,200 of combined financial assets.
- Income Test Impact: The deemed income is added to any other income you receive. If your total income exceeds the income-free area, your DSP payment will be reduced.
Exempt Assets and Financial Strategies
Not all assets are counted in the test. The primary residence is a significant exemption, though conditions apply. Prepaid funeral bonds and special trusts (like ABLE accounts for eligible individuals with disability) can also be exempt or have special treatment.
- Exempt Assets: Understand which assets are not included in the test. This can include your home and certain prepaid funeral expenses.
- Manageable Gifting: If you plan to gift assets, Centrelink has strict rules. You can generally gift up to $10,000 in a financial year, with a maximum of $30,000 over five years, without it being counted.
- Renovating Your Home: Since your home is an exempt asset, investing money in home improvements can reduce your assessable assets without impacting your pension eligibility.
- Financial Advice: For complex situations, particularly involving large asset holdings or managing a retirement income stream, seeking professional financial advice can be beneficial. An authoritative source for information is Services Australia.
Comparison of Assessment Factors
To clarify how different scenarios are treated, here is a comparison of key factors affecting DSP entitlements.
| Factor | Homeowner | Non-homeowner |
|---|---|---|
| Assets Test | Lower asset limits apply; principal home is exempt. | Higher asset limits apply to compensate for not owning a home. |
| Asset Valuation | Assets such as bank balances, shares, and investment properties are assessed. | The same asset types are assessed, but the principal home value is not included. |
| Deeming Rules | Standard deeming rules apply to all financial assets, including bank accounts, for the income test. | Standard deeming rules apply to all financial assets, including bank accounts, for the income test. |
| Pension Rate | The pension amount can be affected by both income and assets tests, with stricter asset limits for homeowners. | Due to the higher asset threshold, a non-homeowner may be able to hold more assets before their pension is impacted by the assets test. |
Conclusion
The amount of money a disability pensioner can have in the bank in Australia is not a fixed figure but rather depends on their total assets, homeownership, and relationship status. Bank balances are part of the overall assets test and are also subject to deeming rules for the income test. The most important step for any DSP recipient is to be aware of the latest asset thresholds from Services Australia and to understand how the deeming rules apply to their financial investments to ensure they are managing their finances correctly and maximising their entitlements.
