Changes to the pension to come into effect January

Changes to the pension to come into effect January
About this post

For those who receive, or that are planning to receive the aged pension, it would pay to double check your eligibility in light of changes to the asset test that will come into effect in the new year.

From 1 January, the assets test free area, or the value of assets you can have before it affects your pension, will be increasing. The family home will still be exempt from the assets test.

The new assets test free areas will be as follows:

  • $250,000 for a single homeowner
  • $375,000 for a homeowner couple
  • $450,000 for a single non-homeowner
  • $575,000 for a non-homeowner couple

If your assets are over the new limit, for every $1000 over, your pension will be reduced by $3 a fortnight. Previously, your pension would have only been reduced by $1.50.

If you would like more information on how these changes could possibly affect your pension you can visit the Department of Human Services page here

If your pension will be decresing by more than $1, or stopping all together, you will receive a letter informing you of the changes to be made in the coming months. 

Related links


This is an information service. By browsing on the website and/or using our search tools, you are asking RateCity to provide you with information about products from multiple financial institutions. We will try to show you a range of products in response to your request for information. The search results do not include all providers and may not compare all features relevant to you, for further details refer to our FSCG. The rating shown is only one factor to take into account when considering these products. For superannuation products, see the rating methodology. We are not a credit provider, and in giving you product information we are not making any suggestion or recommendation to you about a particular credit product. If you decide to apply for a product, you will deal directly with a financial institution, and not with RateCity. Rates and product information should be confirmed with the relevant financial institution, and you should review the PDS before you decide to purchase. See our terms of use for further details. This advice is general and has not taken into account your objectives, financial situation or needs. Consider whether this advice is right for you. This information service uses data and research provided by SuperRatings (ASFL: 311800), which provides general information on superannuation. Read more about SuperRatings’ information service and how their ratings work. As with all investments, past performance is not a reliable indicator of future performance.