Age Pension Assets Test 2026: Thresholds, Exemptions and Strategies

The Age Pension assets test is one of two means tests the Australian Government uses to work out your Age Pension entitlement. The other is the income test, and you are paid under whichever test gives the lower rate. The assets test limits were indexed on 1 July 2026 and the part pension cut-offs rose again on 20 September 2026. Understanding how your assets are assessed, and which assets are exempt, is essential for pensioners and those approaching retirement age. This guide uses the figures that apply from 20 September 2026.

2026 Age Pension Assets Test Thresholds

The assets test limits determine whether you receive a full pension, a part pension, or no pension. From 20 September 2026 the limits are:

• Full pension (single, homeowner): assets up to $333,000
• Full pension (couple combined, homeowner): assets up to $499,000
• Full pension (single, non-homeowner): assets up to $600,000
• Full pension (couple combined, non-homeowner): assets up to $766,000
• Part pension cut-off (single, homeowner): assets of $745,750 or more
• Part pension cut-off (couple combined, homeowner): assets of $1,121,000 or more
• Part pension cut-off (single, non-homeowner): assets of $1,012,750 or more
• Part pension cut-off (couple combined, non-homeowner): assets of $1,388,000 or more

Between the full pension limit and the cut-off, the pension reduces by $3 per fortnight for every $1,000 of assets above the lower limit (the taper rate). The couple limits apply to your combined assets, including where only one partner gets the pension; illness-separated couples have higher cut-offs ($1,324,500 for homeowners, $1,591,500 for non-homeowners). The full pension limits are indexed each 1 July, and the cut-offs also move each 20 March and 20 September when pension rates are indexed. Cut-offs can be higher if you get Rent Assistance. Always check the current figures on the Services Australia assets test page.

Example: a single homeowner with $433,000 of assessable assets is $100,000 over the $333,000 limit. Under the assets test their pension falls by $300 a fortnight (100 × $3), from the typical maximum of $1,237.70 to $937.70 a fortnight, before the income test is applied. From 20 September 2026 the typical maximum rate, including the Pension Supplement and Energy Supplement, is $1,237.70 a fortnight for singles and $933.00 each ($1,866.00 combined) for couples.

What Assets Are Assessed?

Services Australia assesses the current market value of assessable assets including:

• Financial investments: savings accounts, term deposits, shares, managed funds
• Superannuation once you reach Age Pension age (and at any age if you're drawing an income stream from it)
• Investment properties and holiday homes (current market value, less any loan secured against the property)
• Business assets
• Vehicles, boats, caravans
• Household contents and personal effects, valued at what they would sell for, not replacement value. Services Australia uses $10,000 unless you give a different figure, and you must declare the value if it is more than $10,000
• Gifts above the gifting limits (for 5 years)

Exempt Assets (Not Counted in the Test)

• Your principal home: the home you live in, and generally up to 2 hectares of land on the same title, is exempt regardless of its value, though it decides whether the homeowner or non-homeowner limits apply
• Superannuation in accumulation phase while you are under Age Pension age (unless you're drawing an income stream from it)
• A fully prepaid funeral, or funeral bonds up to $16,250 in total (the limit from 1 July 2026). A bond above the limit is assessable in full
• A refundable accommodation deposit (RAD) paid to an aged care home. It is still counted for aged care fees
• Special disability trust assets up to $862,750 (from 1 July 2026)
• A granny flat interest where your entry contribution is more than the extra allowable amount ($267,000 from 1 July 2026). You are then treated as a homeowner. If you transfer more than a reasonable amount for the arrangement, the excess can be treated as a gift

Gifting limits: gifts aren't exempt assets. You can give away up to $10,000 a financial year, and no more than $30,000 over 5 financial years, without it affecting your pension. Anything above these limits is still counted as an asset, and deemed to earn income, for 5 years from the date of the gift.

Superannuation and the Assets Test

Superannuation in an accumulation account is exempt from the assets test while you are under Age Pension age, unless you are drawing an income stream from it. Once you reach Age Pension age (67), your super balance counts towards the assets test and is deemed under the income test. This matters most for couples with an age gap: the younger partner's accumulation super isn't counted until they reach Age Pension age. See when you can access your super tax-free for the tax side.

The Income Test: You Get the Lower of the Two Results

• Income free area: $226 a fortnight for singles and $396 for couples combined. Each dollar of income above this reduces the pension by 50 cents for singles, or 25 cents each for couples
• Deeming: bank accounts, shares, managed funds and account-based pensions are deemed to earn 1.75% a year on the first $66,800 for singles ($110,600 combined for pensioner couples) and 3.75% on amounts above that, whatever they actually earn. These rates apply from 20 September 2026
• Work Bonus: the first $300 a fortnight of employment income (and eligible self-employment income) isn't counted under the income test. Unused amounts build up to a maximum of $11,800, and new recipients start with a $4,000 balance
• Example: a single pensioner whose only income comes from $200,000 in financial investments has deemed income of $6,164 a year ($66,800 × 1.75% = $1,169, plus $133,200 × 3.75% = $4,995), or about $237.08 a fortnight. That's $11.08 over the $226 free area, so the income test reduces their pension by $5.54 a fortnight. Services Australia works out the rate under both the income and assets tests and pays whichever is lower