Understanding the Age Pension assets test
The Australian Age Pension is a social security payment from the government that provides income to eligible older Australians. Eligibility is determined by Services Australia through both an income test and an assets test, with the test resulting in the lower pension amount being applied. Your bank account balance is considered a financial asset and is included in the assets test, along with other valuables you own.
Asset thresholds for Age Pension eligibility
Services Australia sets different asset thresholds based on your living situation. These figures are important as they represent the maximum value of your assets you can have to receive either a full or part pension. It is important to note that these figures are reviewed and updated regularly, so it's best to always check the most current information.
Full Age Pension asset limits (as of September 20, 2025):
- Single homeowner: Up to $321,500
- Single non-homeowner: Up to $579,500
- Couple (combined, homeowner): Up to $481,500
- Couple (combined, non-homeowner): Up to $739,500
Part Age Pension asset limits (as of September 20, 2025):
- Single homeowner: Up to $714,500
- Single non-homeowner: Up to $972,500
- Couple (combined, homeowner): Up to $1,074,000
- Couple (combined, non-homeowner): Up to $1,332,000
How your bank balance is assessed
When Services Australia assesses your assets, they don't just look at the money in your bank account in isolation. Your bank balance is treated as a financial asset and is included in your total asset calculation. The actual income earned from your bank account is not used for the income test; instead, a calculation method called 'deeming' is used.
What is deeming?
Deeming is a government method that assumes your financial assets, including savings and investments, earn a set rate of income, regardless of the actual interest rate you receive. This simplifies the income test. The deemed income is then included in your overall income assessment.
The assets test vs. the income test
Both the assets test and the income test are applied when you claim the Age Pension. Services Australia will apply whichever test results in the lower rate of pension payment. It is possible to pass one test and fail the other, and your final pension amount will be based on the more restrictive result.
Assets that are counted and excluded
It is important to know which assets are included in the assessment and which are exempt. This can significantly impact your eligibility.
Assessed assets
- Financial investments: This includes bank accounts, term deposits, shares, and managed funds.
- Superannuation: Your superannuation is counted once you reach Age Pension age.
- Investment properties: Any property you own other than your primary residence is included.
- Vehicles and household contents: The market value of items like cars, boats, caravans, furniture, and valuables are included.
Exempt assets
- Your primary residence: Your principal home is generally exempt from the assets test, provided it's on a land size of 2 hectares or less.
- Pre-paid funeral bonds: Up to a certain limit, pre-paid funeral bonds are exempt.
- Special disability trusts: Within certain limits, these trusts are exempt.
How to check your eligibility
Navigating the rules can be complex, and getting a clear picture of your entitlements is essential. Services Australia offers tools and services to help you understand your situation.
- Use the Services Australia Payment Finder: This online tool allows you to input your details and get an estimate of your eligibility and potential payment rates. You can find this tool by searching for 'Services Australia Payment Finder' online.
- Speak with a Financial Information Service Officer (FISO): This is a free, confidential service offered by Centrelink that can provide guidance on financial matters, including the Age Pension.
- Seek personalised financial advice: Consulting with a financial adviser can help you develop strategies to manage your assets and retirement income effectively, ensuring you understand all the rules and can make the best decisions for your circumstances.
Comparison of assets test thresholds (September 2025)
| Situation | Homeowner | Non-Homeowner |
|---|---|---|
| Full Pension (Single) | Up to $321,500 | Up to $579,500 |
| Part Pension (Single) | Up to $714,500 | Up to $972,500 |
| Full Pension (Couple combined) | Up to $481,500 | Up to $739,500 |
| Part Pension (Couple combined) | Up to $1,074,000 | Up to $1,332,000 |
Table based on Services Australia asset limits as of September 20, 2025. Please note these figures are subject to change. For the most up-to-date information, please visit the official Services Australia website.
Conclusion: Navigating your financial future
Determining how much money you can have in the bank and still get the Age Pension in Australia is not a single number but depends on your total asset pool. Your bank savings are part of this total, which is weighed against the relevant asset limits for your specific living arrangements. Understanding the interplay between the assets test and income test is vital for retirement planning. By staying informed about the current rules and seeking professional guidance, you can ensure your financial decisions align with your goal of receiving government support in retirement. While the bank balance is a key factor, it's just one piece of the bigger financial puzzle that Centrelink assesses.
