Changes to the assets test

Do you receive the Age Pension?
There are changes from 1 January 2017 that may impact you

Assets Test thresholds
The lower threshold for the Assets Test, the threshold after which recipients of the Age Pension start to have the maximum Age Pension reduced, will increase. The new threshold is outlined below:

  Current Threshold as at 20/09/2016 New Threshold from 01/01/2017
Homeowner - Single  $209,000 $250,000
Homeowner - Couple $296,500 $375,000
Non-Homeowner - Single $360,500 $450,000
Non-Homeowner - Single $448,000 $575,000

Assets Test taper rate
From 1 January 2017 the Asset Test taper rate (the rate at which the maximum Age Pension reduces) will double from $1.50 for every $1,000 of assets above the lower threshold to $3.00 for every $1,000 of assets above the lower threshold.

The doubling of the Centrelink taper rate will result in the following Asset Test cut off thresholds:

   Current Threshold as at 20/09/2016  New Threshold from 01/01/2017
 Homeowner - Single   $793,750  $542,500
 Homeowner - Couple  $1,178,500  $816,000
 Non-Homeowner - Single  $945,250  $742,500
 Non-Homeowner - Couple  $1,330,000  $1,016,000

How may the changes impact you? 
How these changes affect you, if at all, will depend on your individual circumstances. The Department of Human Services will send you a letter regarding these changes in the coming weeks.

In the meantime the Department of Human Services has information available on their website. There is also an Assets Test estimator available on the website which allows you to estimate your Age Pension payment rate. Alternatively, you can also visit your local Centrelink office to find out more information on these changes.

Value of Financial Advice
We understand these changes may have impact on your retirement or your retirement plans and AustSafe Super can provide you with personal Financial Planning advice*. Your initial discussion is obligation free and a quote for personal advice will be provided for your consideration to proceed.

We’re here to help
To discuss your retirement planning options and needs contact our Financial Planner* on 1300 551 352.

*AustSafe Super financial planning services are provided by Industry Fund Services Limited (AFSL 232514, ABN 54 007 016 195), and IFS is responsible for that advice.