In Australia, the Age Pension is a fortnightly sum paid to individuals aged 67 years or older to help fund their retirement years.
As of March this year, the Age Pension is a maximum payment of $1,100.30 per fortnight for singles. Couples can get up to $829.40 per person. This doesn't include any additional potential supplement rates.
But it's important to note that it isn't available to everyone, and if you're eligible, the amount you receive can vary wildly. The problem is that many Australians look at the income test and miss vital information about the asset test.
To help, here are eight things every Australian needs to know about the Age Pension asset test before it's too late.
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1. The Age Pension asset test includes everything except your home
What many Australians don't realise is that the asset test literally includes everything you own in full, in part, or have an interest in.
It generally excludes the home you live in.
Applicable assets include S&P/ASX 200 Index (ASX: XJO) shares, other financial investments, home contents, personal effects and vehicles, real estate, annuities, income streams, superannuation, SMSFs, partnerships, private trusts, and private companies.
It also includes any assets held outside Australia and any debts owed to you.
2. Yes, your superannuation balance also counts
Many people are surprised to learn that the asset test includes your superannuation balance if you're over Age Pension age or you receive payment from it.
3. The limits and rules vary depending on if you're single or in a couple
In order to receive the full Age Pension, single homeowners can own assets (including superannuation) up to a value of $321,500, and non-homeowners can own assets up to $579,500 in retirement.
But a couple has a different threshold, and it's not double the amount of one person. A couple combined can own up to $481,500 in total if they own a property, or $739,500 if they don't.
4. Exceed the limit? You can still get a part payment
If you earn over those limits, there is still hope.
Your assets can total up to $722,000 if you're a single homeowner, and $980,000 if you're a non-homeowner. You can't get the full Age Pension, but you're still entitled to a part-payment depending on where you fall between the two brackets.
Couples are also entitled to a part-payment so long as their combined assets aren't more than $1,085,000 for homeowners. Non-homeowners can own assets totalling up to $1,343,000.
5. Gifting money can backfire
You've reached age 60, and you realise you're over the threshold for the asset test. It can be tempting to gift a chunk of money to influence your Age Pension eligibility.
But Centrelink has strict rules to ensure that Australians don't do this.
An individual can give away up to $30,000 over a five-year period before it will affect their assets test. Any amount over $30,000 will be counted, for five years, as an asset and included in the asset test.
6. Downsizing can leave you worse off
Your home is generally not included in the Age Pension asset test. If you downsized to something smaller, it could put you over the limit.
For example, if you sell a $1.5 million home and downsize to a $1 million property, that $500,000 difference becomes an assessable asset.
But, if you're 55 or over and you've owned your home for at least 10 years, you can contribute up to $300,000 per person ($600,000 per couple) from your sale proceeds into your superannuation. This is called the downsizer super contribution rule, and it could save you a fortune in retirement.
7. Deeming rules apply
Deeming is how centrelink calculates how much income you make from your assets when you apply for Age Pension.
Under deeming rules, instead of looking at how much your assets actually earn, it's assumed they earn a set amount of income.
As of March 2026, the financial assets of single Australians have a deeming rate of 1.25% for the first $64,320. Anything over this amount is deemed to earn 3.25%.
Couples have a 1.25% deeming rate on their first $106,200 of combined financial assets (this includes superannuation). Anything over $106,200 is deemed to earn 3.25%.
8. The rules constantly change
The final thing that every 60-year-old needs to know about the asset test is that the rules constantly change.
Anything from threshold rates, deeming levels, and even eligibility rules is constantly updated. So if you plan a strategy at age 60, it could be out of date by the time you reach retirement.
