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. 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 advice1. 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 Planner1 on 1300 551 352.

1Austsafe Pty Ltd ABN 96 010 528 597 AFSL 314183 RSE License L0002035 has engaged Industry Fund Services Limited (IFS) ABN 54 007 016 195 AFSL No 232514 to facilitate the provision of financial advice to members of Austsafe Pty Ltd. Advice is provided by one of our financial planners who are

Representatives of IFS. Fees may apply. Further information about cost of advice is set out in the relevant Financial Services Guide, a copy of which is available at austsafe.com.au or by calling 1300 131 293. IFS is responsible for any advice given to you by its Representatives. Any reference made to an AustSafe Super Financial Planner refers to the IFS service.