What counts as an assessable asset for the Age Pension?

Assessable assets include super (in either accumulation or pension phase), bank accounts, term deposits, shares, managed funds, investment property net equity (value minus mortgage), vehicles at trade-in value, contents at fire-sale value, business assets at net value, and gifts in the last 5 years above the allowed limits. Your primary residence is excluded if you are a homeowner.

What is the difference between the assets test and the income test?

Services Australia applies BOTH tests every fortnight and pays the LOWER result. The assets test taper kicks in once your assessable assets exceed the full-pension threshold, reducing the pension by $3 per fortnight ($78 per year) for every $1,000 above. The income test deems your financial assets to earn a notional rate (1.25% on the first slice, 3.25% on the rest) and reduces the pension by 50 cents per dollar of assessable income above the income-free area.

Why is the homeowner threshold lower than the non-homeowner threshold?

Services Australia recognises that non-homeowners pay rent or pay to live somewhere, so they need a higher allowance for assets before the pension tapers. For singles in the March 2026 indexation, the gap is around $258,000 (homeowner full-pension threshold $321,500 vs non-homeowner $579,500). The cutoff for zero pension is similarly higher for non-homeowners.

Does my super count even if I am not drawing it yet?

Yes. Once you reach Age Pension age, your super counts as an assessable asset whether it sits in accumulation or pension phase. Before Age Pension age, super in accumulation phase is exempt for partners who are below pension age (a strategic gap your full FIRE plan can model).

When does the income test bind instead of the assets test?

The income test binds when you have a lot of financial assets (bank, shares, super) but few non-financial assessable assets (no investment property, modest contents). Deeming converts those financial assets into a notional income that triggers the income-test taper before the assets-test taper applies. For most retirees with mixed asset bases, the assets test binds. The calculator surfaces which one bound your result.

What is the deeming rate and how does it work?

Deeming is a Services Australia rule that treats your financial assets as if they earn a fixed return, regardless of what they actually earn. The rate has two tiers: 1.25 per cent on the first $64,200 (single) or $106,200 (couple), and 3.25 per cent on anything above. The Minister sets these rates and they change occasionally. Deeming applies to the income test, not the assets test.

How does this calculator differ from the full ProjectFi planner?

This calculator answers one question: given your current assets, what Age Pension would Services Australia pay you today. The full planner projects your pension YEAR BY YEAR through retirement, factoring in CPI indexation, your super drawdown, investment property income, partner super timing, Work Bonus, and the strategic windows where pension eligibility flips on or off. Use this for a quick check; use the planner for end-to-end planning.

Age Pension Assets Test Calculator Australia

Updated for 20 March 2026 indexation

See your fortnightly Age Pension entitlement based on the current Services Australia assets and income tests. Built for Australian retirees and FIRE planners who want to know which test binds, how much asset headroom you have before the pension reduces, and what each extra $1,000 of assessable assets costs you.

Current age

Total assessable assets

Includes super, non-super investments, investment property net equity, vehicles, contents, and gifts in the last 5 years. Excludes the family home.

Age Pension estimate

Part Age Pension: $965.38/fortnight.

Annual pension

$25,100/yr

Per fortnight

$965.38

Maximum (full)

$31,223/yr

Binding test

assets

Taper zone: the assets test is reducing your pension. You're $322,000 below the assets-test cutoff.

How the Australian Age Pension assets test works

Services Australia (the agency that absorbed Centrelink's pension functions) applies two means tests every fortnight: the assets test and the income test. Whichever test gives the lower result is the one that determines your pension that fortnight. The assets test is the one most retirees encounter, so it gets the headline treatment in this calculator. For background on how Age Pension fits into a broader FIRE plan, our Age Pension assets test for FIRE planners blog post covers the strategic decisions retirees face.

The assets test compares your total assessable assets against two thresholds: a full-pension threshold (below this, the test allows the maximum pension) and a cutoff (above this, the test allows no pension at all). Between the two thresholds, the pension reduces at a statutory rate of $3 per fortnight ($78 per year) for every $1,000 your assets exceed the full-pension threshold.

Both thresholds depend on your household type. The four combinations (single homeowner, single non-homeowner, couple homeowner, couple non-homeowner) each have their own values. Services Australia indexes the thresholds twice a year (20 March and 20 September) in line with CPI.

Current published assets-test thresholds (March 2026 indexation)

From the Services Australia assets test page for the March 2026 update. Important caveat: these are the ASSETS-test numbers only. The income test (deemed income from financial assets) can reduce your pension at lower asset levels if most of what you hold is “financial” (super, bank accounts, shares, managed funds). Both tests run in parallel; whichever gives the lower pension is the one that applies. See the next section for what triggers the income test.

Single homeowner: full pension up to $321,500; no pension above $722,000.
Single non-homeowner: full pension up to $579,500; no pension above $980,000.
Couple homeowner: full pension up to $481,500; no pension above $1,085,000.
Couple non-homeowner: full pension up to $739,500; no pension above $1,343,000.

The maximum annual pension at the March 2026 indexation is $31,223 for a single person and $47,070 combined for a couple, including base rate plus the supplements (pension supplement and energy supplement) Services Australia pays as part of the standard rate.

The income test runs in parallel and often bites earlier

For users with mostly financial assets (super in pension phase, bank, shares), the income test reduces the pension before the assets-test threshold is reached. Here is when each test starts biting at the March 2026 indexation rates, assuming all assessable assets are financial (the conservative default in the calculator):

Single (any homeownership status): income test starts reducing pension at roughly $213,900 in financial assets. Assets test starts reducing at $321,500 (homeowner) or $579,500 (non-homeowner).
Couple (any homeownership status): income test starts reducing pension at roughly $370,400 in financial assets. Assets test starts reducing at $481,500 (homeowner) or $739,500 (non-homeowner).

The income-test trigger is computed from the deeming formula: financial assets × deeming rate hits the income-free area. For a single person at March 2026 rates, the math is: $64,200 deemed at 1.25% gives $802.50; the income-free area of $5,668 is hit when an additional $149,708 is deemed at 3.25%, so the trigger lands at $64,200 + $149,708 = $213,908.

This is why the calculator may show a part pension at asset levels well below the assets-test threshold. If you have material non-financial assets (an investment property, a vehicle, contents), open the “Have non-financial assets?” expander and enter the non-financial portion. The calculator subtracts that from the deemable amount and shows a higher pension.

What counts as assessable

Assessable assets include essentially everything you own that is not your primary residence. The full list:

Super (accumulation and pension phase, once you reach Age Pension age).
Non-super investments (shares, ETFs, managed funds, term deposits, cash).
Investment property NET equity (current market value minus outstanding mortgage).
Vehicles at trade-in value.
Contents at fire-sale value (Services Australia uses about 10-20% of replacement value).
Business assets at net value.
Gifts in the last 5 years above the allowable amount ($10,000 per year, $30,000 over 5 years).

Your primary residence (PPOR) is excluded for homeowners regardless of value. This is why selling a $2M home and renting can move you from a homeowner threshold to a non-homeowner threshold and may not actually improve your pension situation, even though it raises your assessable assets significantly.

Worked example one: married homeowner couple

Maria and David are both 68, retired, homeowners. Their combined assets:

Super (combined, in pension phase): $700,000
Bank + shares: $80,000
Investment property in Brisbane: $560,000 net of mortgage
Two cars + contents: $20,000 trade-in / fire-sale
Total assessable: $1,360,000

Their family home is excluded. The couple-homeowner full-pension threshold is $481,500, so they are $878,500 over. The taper reduction is $878.5 × $78 = $68,523/year.

The maximum couple pension is $47,070/year. After the assets-test taper, their entitlement would be $47,070 - $68,523 = negative, so the assets test takes the pension to zero. Above the $1,085,000 couple-homeowner cutoff, no pension applies regardless of what the income test says.

For Maria and David, the lever that would unlock a pension is spending the investment property equity (e.g. selling and using the proceeds to renovate the family home, which is exempt). This is the kind of strategic question the full ProjectFi planner models year by year.

Worked example two: single non-homeowner

Wendy is 70, single, rents her unit. Her assets:

Super (pension phase): $350,000
Bank + term deposits: $40,000
Car + contents: $15,000
Total assessable: $405,000

The single-non-homeowner full-pension threshold is $579,500. Wendy is $174,500 below the threshold, so the assets test allows the full pension of $31,223/year ($1,200.88/fortnight).

The income test still applies, and only the financial portion of her assets is subject to deeming. Of Wendy's $405,000 total assessable, $390,000 is financial (super pension phase + bank + term deposits) and $15,000 is non-financial (car + contents). The $15,000 still counts in the assets test but is not deemed for the income test. Deeming on the $390,000 financial slice gives:

First $64,200 at 1.25% = $802.50/year
Remaining $325,800 at 3.25% = $10,588.50/year
Total deemed income: $11,391/year

The single income-free area is $5,668/year, so Wendy is $5,723 over the free area. The income-test taper is 50 cents per dollar: $5,723 × 0.50 = $2,861/year reduction. Income-test pension = $31,223 - $2,861 = $28,362/year.

The assets test allows $31,223; the income test allows $28,362. The lower binds, so Wendy receives $28,362/year ($1,090.85/fortnight). This is a case where the income test binds even though the assets test would allow the full pension. The “refine financial assets” field on the calculator surfaces this distinction.

How this calculator handles the financial-asset split

Deeming applies only to financial assets like super, bank accounts, shares, managed funds, and gold or crypto held as investment. Investment property equity, vehicles, and contents are in the assets test but not deemed for the income test.

By default the calculator treats your entire assessable-asset number as financial. This is conservative: it overstates deemed income and understates the income-test pension. If you have material non-financial assessable assets (an investment property, for example), open the “Refine financial assets” expander and enter the financial portion separately. The calculator recomputes both tests and shows the higher (correct) result.

Sources and references

Services Australia publishes the canonical thresholds and rates: Age Pension overview, assets test, and income test. Deeming rules are detailed under deeming. All thresholds index every 20 March and 20 September.

Want to see how your pension projects through the next 30 years (with CPI indexation, super drawdown, partner timing, and the strategic windows where eligibility flips)? The ProjectFi planner takes you all the way to a year-by-year projection.

FAQ

What counts as an assessable asset for the Age Pension?: Assessable assets include super (in either accumulation or pension phase), bank accounts, term deposits, shares, managed funds, investment property net equity (value minus mortgage), vehicles at trade-in value, contents at fire-sale value, business assets at net value, and gifts in the last 5 years above the allowed limits. Your primary residence is excluded if you are a homeowner.
What is the difference between the assets test and the income test?: Services Australia applies BOTH tests every fortnight and pays the LOWER result. The assets test taper kicks in once your assessable assets exceed the full-pension threshold, reducing the pension by $3 per fortnight ($78 per year) for every $1,000 above. The income test deems your financial assets to earn a notional rate (1.25% on the first slice, 3.25% on the rest) and reduces the pension by 50 cents per dollar of assessable income above the income-free area.
Why is the homeowner threshold lower than the non-homeowner threshold?: Services Australia recognises that non-homeowners pay rent or pay to live somewhere, so they need a higher allowance for assets before the pension tapers. For singles in the March 2026 indexation, the gap is around $258,000 (homeowner full-pension threshold $321,500 vs non-homeowner $579,500). The cutoff for zero pension is similarly higher for non-homeowners.
Does my super count even if I am not drawing it yet?: Yes. Once you reach Age Pension age, your super counts as an assessable asset whether it sits in accumulation or pension phase. Before Age Pension age, super in accumulation phase is exempt for partners who are below pension age (a strategic gap your full FIRE plan can model).
When does the income test bind instead of the assets test?: The income test binds when you have a lot of financial assets (bank, shares, super) but few non-financial assessable assets (no investment property, modest contents). Deeming converts those financial assets into a notional income that triggers the income-test taper before the assets-test taper applies. For most retirees with mixed asset bases, the assets test binds. The calculator surfaces which one bound your result.
What is the deeming rate and how does it work?: Deeming is a Services Australia rule that treats your financial assets as if they earn a fixed return, regardless of what they actually earn. The rate has two tiers: 1.25 per cent on the first $64,200 (single) or $106,200 (couple), and 3.25 per cent on anything above. The Minister sets these rates and they change occasionally. Deeming applies to the income test, not the assets test.
How does this calculator differ from the full ProjectFi planner?: This calculator answers one question: given your current assets, what Age Pension would Services Australia pay you today. The full planner projects your pension YEAR BY YEAR through retirement, factoring in CPI indexation, your super drawdown, investment property income, partner super timing, Work Bonus, and the strategic windows where pension eligibility flips on or off. Use this for a quick check; use the planner for end-to-end planning.

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