What is the Assets Test?
Quick answer
The assets test is one of two means tests Centrelink runs on every Age Pension claim, based on the value of what you own. Below the full-pension threshold you get the maximum rate. Above it, your pension tapers down by $3 a fortnight for every $1,000 over the limit, until it cuts off entirely at a higher threshold.
How it works
Centrelink values your assets at what they're worth today, not what you paid for them. There are two key numbers for your situation: a full-pension threshold (the most you can hold while still getting the maximum rate) and a part-pension cut-off (the point where your entitlement reaches zero). In between, your pension gradually tapers down.
What counts, and what doesn't
Assessable assets include your super (once you reach Age Pension age), bank accounts, term deposits, shares and managed funds, investment properties, cars and other vehicles, and household contents (Centrelink defaults to $10,000 for these unless you declare otherwise). Your principal home is exempt, regardless of its value, which is the main reason non-homeowners get a higher threshold, they're assumed to still be covering rent or other housing costs from their other assets.
Current thresholds
As of the current 2026 rates, a single homeowner can hold assessable assets up to around $333,000 and still get the full pension, with the part pension cutting out around $733,500. A single non-homeowner's threshold sits higher, around $600,000, cutting out near $1,000,500. For couples it's a combined figure, both partners' assets added together, around $499,000 (homeowner) or $766,000 (non-homeowner) for the full pension. These figures are reviewed several times a year, so check Services Australia for the exact current number before relying on it.
Worked example: a single homeowner with $433,000 in assessable assets is $100,000 over the $333,000 threshold. At $3 per fortnight for every $1,000 over, that's a $300 a fortnight reduction, taking them from the maximum single rate down to roughly $900 a fortnight under the assets test alone, before the income test is even applied.
Assets test vs income test
Centrelink runs the income test at the same time as the assets test, and pays whichever result is lower. You don't get to choose which one applies. Our Retirement Income & Age Pension Calculator runs both tests on your own numbers and shows you which one is binding.
📚 Recommended reading
Retirement Made Simple
Noel Whittaker
Retirement Made Simple
Australia's godfather of personal finance demystifies super, the pension and making your savings last. The plain-English retirement handbook every Aussie should read before they stop working.
The Barefoot Investor
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Australia's best-selling money book ever. A simple system for accounts, budgeting, debt and a real emergency fund in one.
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🧮 Retirement Income & Age Pension Calculator
See your estimated Age Pension based on both the assets test and income test.
The Age Pension in Australia, in full
A deeper walkthrough of eligibility, the assets test, the income test, super, and how to apply.
Frequently asked questions
Does the family home count in the assets test?
No, your principal home is exempt regardless of its value. That's also why non-homeowners get a higher assets test threshold, to roughly account for the fact they're still covering rent or other housing costs.
What happens if my assets go over the cut-off?
Your pension is cancelled. If your assets later fall back below the cut-off, for example after drawing down super, you can reclaim your entitlement, so it's worth keeping Centrelink updated on changes to what you own.
How often do the thresholds change?
Services Australia reviews them several times a year. Not every review results in a change, but the thresholds generally increase over time as they're indexed.
Is my super always counted?
Only once you reach Age Pension age. Before that, super sitting in accumulation phase is generally not counted at all, whether it's yours or a partner's.
Related terms
Sources
Disclaimer
This is general information only, not personal financial or Centrelink advice. Age Pension asset thresholds are set by the government and reviewed periodically, always confirm current figures at servicesaustralia.gov.au or with a Financial Information Service officer before making decisions about your retirement income.