What are the income and assets tests for the pension? 1

These tests are designed for use by Centrelink in determining the level of pension, allowance or other support you will be entitled to under the government’s welfare regulations and legislation. The tests apply so that you will be paid the least benefit allowable after each test is considered – with the effect that if one of the tests ‘rules you out’ then you will not receive the benefit.

The Income Test

The test on your income to determine if you are eligible for Centrelink entitlements. Under this test you can earn a certain amount of income before your full entitlement to Centrelink is reduced or cuts out. The level at which your pension begins to be reduced varies depending on whether you are single or married.

The income thresholds are shown in the table below. Income above the lower threshold reduces the pension by 50 cents in the dollar (single) and 25 cents in the dollar each (for couple).

Family situation For full pension (pf) For part pension (pf) #*
Single Up to $156.00 Less than $1,801.20
Single + one child Up to $180.60 Less than $1,630.70
Couple (combined) Up tp $276.00 Less than $3,100.50
Additional children Add $24.60 per child

# These figures may be higher if you receive rent assistance.
* Includes Pharmaceutical Allowance.

The Assets Test

The test on your assets to determine if you are eligible for Centrelink entitlements. Under this test you can have a certain amount of assets before your full entitlement to Centrelink is reduced or cuts out. The level at which your pension begins to be reduced varies depending on whether you are single or married and whether you own your own home.

Your pension entitlement is also subject to an asset test. For every $1,000 of assets above the lower limits, your fortnightly pension reduces by $1.50 per fortnight.

Family Situation
For full pension
For part pension
Homeowner
Single $196,750 $  748,250
Partnered (combined) $279,000 $1,382,000
Non-homeowner
Single $339,250 $  806,250
Partnered (combined) $421,500 $1,175,000

1 The above information has been reviewed and updated as at January 2014.

We acknowledge the resources of Securitor Financial Group Limited in drafting the majority of the detail in the following article: it was extracted from the Support Information to advice document templates provided by them.

Continuum Financial Planners - Brisbane, Noosa & Warwick
2042 Logan Road, Upper Mount Gravatt BrisbaneQLD4122 Australia 
 • 07 3421 3456

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