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.