Age Pension Assets Test 2026: New Limits That Could Affect Your Payments

The Age Pension provides essential income support for eligible Australians aged 67 or older. As part of the eligibility process, Services Australia applies both an income test and an assets test to determine payment amounts.

The assets test evaluates the value of what you own, which can reduce or eliminate your pension if it exceeds certain thresholds. These thresholds are reviewed periodically by the Department of Social Services, typically in March, July, and September each year.

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The most recent adjustments took effect on 20 September 2025, and these remain current as of January 2026, extending until the next review on 20 March 2026.

Understanding these limits is crucial for retirees planning their finances. If your assets are above the full pension threshold but below the part pension cut-off, you may still receive a reduced payment. Homeownership status plays a key role, as homeowners generally have lower thresholds than non-homeowners.

This article outlines the current assets test details based on official information from Services Australia, explaining how they might impact your Age Pension in 2026.

Understanding the Assets Test for Age Pension

The assets test assesses most types of property or items you or your partner own fully or partially. This includes financial investments like bank accounts, shares, and managed funds; personal items such as vehicles and household contents; and real estate beyond your primary home.

Your principal home is usually exempt, along with up to two hectares of surrounding land if used for domestic purposes.

Services Australia deems certain financial assets to earn income at set rates, which can affect the overall assessment. As of January 2026, the deeming rates—updated on 20 September 2025—are 0.75% on the first $64,200 for a single person (or $106,200 combined for couples) and 2.75% on amounts above that. These rates apply regardless of actual returns, helping to standardize the test.

If you’re permanently blind, the assets test does not apply. For others, the test works alongside the income test: your pension rate is based on whichever test results in the lower payment. Assets over the limits reduce your pension by $3 per fortnight for every $1,000 above the full pension threshold (or $1.50 per person for couples).

Certain assets are exempt or assessed differently. For example, funeral bonds up to a specific value and some income streams may not count fully. If you’ve gifted assets exceeding $10,000 in a year (or $30,000 over five years), the excess can still be included in the test for up to five years.

Always check with Services Australia for personalized advice, as individual circumstances vary.

Current Assets Test Limits in 2026

As of 1 January 2026, the assets test limits are unchanged from the 20 September 2025 update. These apply until 19 March 2026, unless further adjustments occur. The thresholds differ based on whether you’re single or in a couple, and if you’re a homeowner or non-homeowner. Couples separated due to illness are assessed as singles for thresholds but combined for assets.

Here’s a breakdown of the limits for a full Age Pension, where no reduction applies if assets are below these amounts:

Situation	Homeowner	Non-Homeowner
Single	$321,500	$579,500
Couple (combined)	$481,500	$739,500
Illness-separated couple (combined)	$481,500	$739,500

For a part Age Pension, payments taper off gradually until assets reach the cut-off point, beyond which no pension is payable:

Situation	Homeowner	Non-Homeowner
Single	$714,500	$972,500
Couple (combined)	$1,074,000	$1,332,000
Illness-separated couple (combined)	$1,267,500	$1,525,500

Some recipients qualify for transitional rates, which use pre-2009 rules for a potentially higher pension. Transitional full pension limits match the standard ones, but part pension cut-offs are lower:

Situation	Homeowner	Non-Homeowner
Single	$641,500	$899,500
Couple (combined)	$998,000	$1,256,000
Illness-separated couple (combined)	$1,191,500	$1,449,500

These figures come directly from Services Australia and align with data from the Department of Veterans’ Affairs, which uses the same thresholds for service pensions. If your assets fluctuate due to market changes, you don’t need to report them unless the shift is significant—over $2,000 for financial assets or $1,000 for others.

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How These Limits Could Affect Your Payments

Exceeding the full pension threshold means a reduction in your Age Pension. For instance, a single homeowner with $350,000 in assets (above the $321,500 limit by $28,500) would see their pension reduced by $85.50 per fortnight ($3 per $1,000 excess). This calculation applies after the income test, ensuring the stricter rule prevails.

In 2026, with no immediate changes to assets thresholds until March, many pensioners will continue under the September 2025 settings. However, related updates like deeming rates can indirectly influence outcomes. The increase to 0.75% and 2.75% deeming rates means higher assumed income from investments, potentially pushing some over income test limits even if assets are within bounds.

Pension payments themselves are indexed separately. As of January 2026, basic rates are subject to review, but assets test impacts remain tied to these thresholds. If you’re close to a limit, small changes in asset values—from selling a car to investment gains—could alter your entitlement. Services Australia encourages using their online calculators to estimate effects.

For couples, assets are combined, so one partner’s higher holdings can affect both. If separated due to health reasons, higher individual thresholds apply, offering some relief. Non-homeowners benefit from higher limits to account for rental costs, but they must meet residency rules.

Key Factors Influencing the Assets Test

Several elements can modify how the test applies:

• Asset Types Assessed: Financial assets (e.g., shares, superannuation once accessible) are deemed. Real estate like investment properties counts at market value, minus debts. Personal effects are valued at $10,000 unless specified otherwise.
• Exemptions: Your home, certain life insurance policies, and aids for disabilities are not included. Income from outside Australia may be assessed differently.
• Work Bonus: If working, up to $300 per fortnight of employment income can be offset against the income test, indirectly helping if assets are high.
• Indexation Process: Limits adjust based on the Consumer Price Index and other economic indicators. The Department of Social Services oversees this, ensuring fairness amid inflation.

Retirees should monitor announcements from trusted sources like the Department of Social Services for any mid-year tweaks. In 2025, limits rose modestly in July and September, reflecting economic conditions. For 2026, the next potential shift is in March, which could raise thresholds if costs increase.

Planning Tips for 2026

To maximize your Age Pension, consider strategies within the rules:

1. Review your asset mix: Shifting to exempt items or restructuring investments might help, but seek financial advice.
2. Use gifting wisely: You can gift up to $10,000 annually without penalty, reducing assessable assets.
3. Claim supplements: Even if assets reduce your base pension, you may qualify for extras like the Pension Supplement or Energy Supplement.
4. Report changes promptly: Life events like inheritance or asset sales must be notified within 14 days to avoid overpayments.
5. Combine with super: Accessing super at preservation age can influence assets, but timing matters.

Always verify details with Services Australia, as rules can evolve. For veterans, the Department of Veterans’ Affairs provides aligned guidance.

Staying Informed on Changes

The assets test ensures the Age Pension targets those in need, but it can be complex. With thresholds stable into early 2026, now is a good time to assess your situation. If assets are nearing limits, even minor economic shifts could impact payments. Official resources remain the best way to stay updated, avoiding misinformation from unverified sites.

In summary, the 2026 assets test limits, effective from the 2025 updates, provide clear boundaries for eligibility. By understanding these, retirees can better manage their finances and secure the support they deserve.

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