Income Test vs Assets Test: What You Need to Know for Your Centrelink Age Pension Application

If you’re applying for the Age Pension in Australia, understanding how Centrelink assesses your financial situation is crucial. Your Age Pension eligibility and payment amount are determined by two main assessments:

• The Income Test, and

• The Assets Test

At AgePensionServices, we specialise in helping older Australians with their Age Pension applications. In this article, we’ll explain the difference between these two tests so you can feel confident and prepared.

✅ What Is the Centrelink Income Test?

The Income Test is used by Centrelink to assess the amount of money you earn from various sources. This test helps determine how much of the Age Pension you may receive.

💡 Types of income Centrelink looks at include:

• Wages from casual or part-time work

• Superannuation income streams (e.g. account-based pensions)

• Rental income from investment properties

• Interest and dividends from savings and investments

• Business or self-employment income

• Overseas pensions

• Deemed income from financial investments (Centrelink estimates your income using set deeming rates, regardless of actual earnings)

📉 How the Income Test affects your Age Pension

If your income is over the threshold, your Age Pension payment will be reduced:

• Singles: 50 cents per fortnight is deducted for every dollar over the income limit

• Couples (combined): 25 cents per person per fortnight is deducted for every dollar over

Tip: You may still be eligible for a part pension if your income is above the full pension threshold.

💰 What Is the Centrelink Assets Test?

The Assets Test looks at the total value of what you own (excluding your primary residence) to determine whether you’re eligible for the Age Pension, and how much you can receive.

💡 What counts as assets?

• Investment properties (excluding your home)

• Vehicles

• Superannuation (once you’ve reached Age Pension age)

• Term deposits, shares, and managed funds

• Business equipment and assets

• Household contents and personal valuables

• Gifts over the allowable limits

📉 How the Assets Test affects your Age Pension

If your assets are above the allowable threshold:

• Your Age Pension is reduced by $3.00 per fortnight for every $1,000 over the limit

🧾 Which Test Applies?

When you lodge your Age Pension application, Centrelink applies both the Income Test and the Assets Test. The test that results in the lower pension rate is the one used to calculate your payment. This is known as the means test.

📊 Current Thresholds (As of March 2025 – subject to change)

Full Age Pension – Income Test limits:

• Single: up to $204 per fortnight

• Couple (combined): up to $360 per fortnight

Full Age Pension – Assets Test limits:

• Single homeowner: up to $301,750

• Couple homeowners: up to $451,500

If you exceed these thresholds, you may still qualify for a reduced (part) Age Pension.

🎯 Get Help With Your Age Pension Application

Applying for the Centrelink Age Pension can be confusing and time-consuming. If you’re unsure how your income or assets affect your Age Pension eligibility, we’re here to help.

At Age Pension Services, we offer:

• Personalised support for your Age Pension application

• Advice on how the Income and Assets Test apply to your situation

• Help with gathering and submitting the right documents

• Guidance to ensure you receive the maximum pension you’re entitled to

📞 Let Us Make Your Age Pension Application Easy

Don’t let paperwork or uncertainty hold you back from receiving the support you deserve. Whether you’re applying for the first time or updating your details, our team is here to assist.

👉 Contact Age Pension Services today for expert help with your Centrelink Age Pension application.