The Age Pension assets test is one of two means tests the Australian government applies to determine your Age Pension entitlement. In 2026, the assets test thresholds have been updated in line with the government's regular indexation schedule. Understanding how your assets are assessed — and which assets are exempt — is essential for pensioners and those approaching retirement age. Here is the complete 2026 guide.

2026 Age Pension Assets Test Thresholds

The assets test thresholds determine whether you receive a full pension, a partial pension, or no pension. As of 2025-26 (indexed 20 March 2026):

  • Full pension (singles, homeowner): Assets below $301,750
  • Full pension (couples combined, homeowner): Assets below $451,500
  • Full pension (singles, non-homeowner): Assets below $543,750
  • Full pension (couples combined, non-homeowner): Assets below $693,500
  • Pension cut-off (singles, homeowner): Assets above $674,000
  • Pension cut-off (couples combined, homeowner): Assets above $1,012,500

Between the full pension threshold and cut-off, the pension reduces by $3 per fortnight for every $1,000 of assets above the lower threshold (the taper rate). Always verify current thresholds at servicesaustralia.gov.au — these are indexed every 20 March and 20 September.

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 (for those over Age Pension age)
  • Investment properties (market value, not equity)
  • Business assets
  • Vehicles, boats, caravans
  • Household contents above $10,000 (most households use the standard $10,000 household contents estimate)

Exempt Assets (Not Counted in the Test)

  • Your primary home: The home you live in is fully exempt from the assets test (regardless of its value), though it affects the homeowner vs non-homeowner threshold
  • Pre-paid funeral plans and funeral bonds (up to $15,000)
  • Accommodation bond paid to a residential aged care facility
  • Special disability trust assets (up to $779,750)
  • Gifting within limits: $10,000 per financial year / $30,000 over 5 years — amounts above these are still counted

Superannuation and the Assets Test

Superannuation held in an accumulation phase account by a person who has not yet reached Age Pension age is exempt from the assets test. Once you reach Age Pension age (currently 67), your super balance is included in the assets test assessment. This creates opportunities to grow super before Age Pension age without affecting entitlements.

Frequently Asked Questions

What is the Age Pension age in 2026?

The Age Pension qualifying age is 67 for all Australians born on or after 1 January 1957. There are no further increases to the qualifying age legislated after 67.

Does my home count in the Age Pension assets test?

No. Your principal place of residence is fully exempt from the assets test regardless of its value. However, homeowners and non-homeowners have different asset thresholds — homeowners have lower thresholds because their housing is considered part of their security.

Can I reduce my assessable assets before applying for the pension?

There are legitimate strategies to manage asset levels — including prepaying funeral expenses (up to $15,000), certain accommodation deposits, and making gifts within the allowable limits. However, Centrelink applies a deprivation test to gifting above $10,000 per year ($30,000 over 5 years) — excess gifts remain counted in the assets test for 5 years.

Planning for the Age Pension and want to understand your position? Contact AWTS for retirement income planning advice.