What Are Exempt Assets for Centrelink Age Pension?

When applying for the Age Pension in Australia, understanding what counts as an exempt asset can make a big difference in determining your eligibility and payment rate. Centrelink uses both an income test and an assets test to assess your application. However, not all assets are counted. Here’s what you need to know.

Key Exempt Assets for the Age Pension

1. Your Principal Home
   If you own and live in your home, its value is fully exempt from the assets test. This exemption also covers up to 2 hectares of land on the same title if used for private purposes.

2. Home Contents and Personal Items
   Furniture, whitegoods, clothing, and other personal effects are valued at second-hand (garage sale) prices and usually have minimal impact.

3. Funeral Bonds and Prepaid Plans
   Funeral investments are exempt up to a threshold (around $15,000 in 2025) if structured correctly and no accessible funds remain.

4. Superannuation (If Under Age Pension Age)
   If your partner hasn’t yet reached Age Pension age, their superannuation in the accumulation phase is not assessed until they become of age.

5. Disaster or Compensation Payments
   Some lump-sum payments for home repairs or asset replacement may be exempt for a limited time if they’re kept separate and used as intended.

6. Special Disability Trusts
   Funds in a Special Disability Trust (up to a capped amount) set aside for a family member with a severe disability may be asset-test exempt.

Why Knowing This Matters When Applying for the Age Pension

By understanding what is and isn’t counted under the assets test, you can better prepare your Age Pension application and avoid unnecessary delays or payment reductions. If you exceed the asset limit, your payment may be reduced or denied—even if your actual income is low.

Contact us today to get reliable, professional help with your Age Pension and enjoy peace of mind in retirement.