How the Age Pension Assets Test Works in Australia (2026)

If you’re approaching retirement, one question comes up more than any other: “how much can I have in assets and still get the Age Pension?” This guide answers that in plain English, using the current 2026 thresholds, with no jargon left unexplained.

For how much pension you’d actually receive at different asset levels, see How Much Age Pension Can I Get in 2026? This guide focuses purely on the assets test itself — what it is, what counts, and where the cut-offs sit.

What Is the Age Pension Assets Test?

Centrelink uses two separate checks to work out your Age Pension: the assets test and the income test. You’re paid based on whichever test gives you the lower amount — so even if you comfortably pass one, the other can still limit what you receive.

The assets test looks at the total value of what you (and your partner, if you have one) own — excluding your family home — and compares it against set thresholds. The more you have above the threshold, the more your pension reduces, until it eventually cuts out altogether.

These thresholds aren’t fixed forever. Services Australia reviews and adjusts them three times a year — March, July, and September — in line with the cost of living. This guide reflects the thresholds current from 1 July 2026.

2026 Age Pension Assets Test Thresholds

There are two numbers that matter for every situation: the point where your pension starts reducing (full pension limit), and the point where it cuts out completely (part-pension cut-off).

Full pension — you can hold up to this much and still get the maximum rate:

Situation	Full pension asset limit
Single, homeowner	$333,000
Single, non-homeowner	$600,000
Couple, homeowner (combined)	$499,000
Couple, non-homeowner (combined)	$766,000

Part pension cut-off — above this, you receive nothing:

Situation	Part pension cuts out at
Single, homeowner	$733,500
Single, non-homeowner	$1,000,500
Couple, homeowner (combined)	$1,102,500
Couple, non-homeowner (combined)	$1,369,500

Notice non-homeowners get a higher allowance across the board — this exists because renters don’t have the family-home exemption homeowners get, so Centrelink allows them more assessable assets to compensate.

Why Non-Homeowners Get Higher Thresholds

This is one of the most misunderstood parts of the assets test. If you own your home, its value is completely excluded — a $2 million house in Adelaide’s eastern suburbs doesn’t count against you at all.

If you rent, you obviously don’t get that exemption, so Centrelink allows you to hold more in other assets before your pension is affected. That’s why every non-homeowner threshold above is higher than the equivalent homeowner threshold.

What Counts as an Asset in the Age Pension Test?

Most of what you own is assessable, including:

Superannuation balances (once you’re Age Pension age — before that, your super is invisible to Centrelink)
Bank accounts, term deposits, and savings
Shares, managed funds, and other investments
Investment properties or a granny flat you own on someone else’s land
Household contents and personal effects (furniture, appliances — insured value, not sentimental value)
Vehicles, boats, and caravans
Business assets
Some funeral bonds above the exempt limit.\

What’s generally exempt:

Your principal home
Funeral bonds up to $16,250 per person
Prepaid funeral expenses (fully paid, non-refundable contracts)
Proceeds from selling your home, for up to 24 months while you arrange a new one (extendable to 36 months in some cases)

If you’ve got an investment property with a mortgage, only the equity counts — Centrelink subtracts what you still owe from the market value.

Does My Super Count Toward the Assets Test?

Yes — once you reach Age Pension age, your entire super balance is assessed, whether it’s still in accumulation phase or you’ve started drawing an income stream from it.

Before you reach Age Pension age, your super is not counted at all, which is why the timing of when a younger partner turns 67 can catch couples off guard: their previously invisible super suddenly gets added to the household total.

How the Taper Rate Works

Once your assets pass the full pension threshold, your payment doesn’t drop to zero straight away — it reduces gradually. For every $1,000 of assets above the full pension limit, your fortnightly payment drops by $3.

Worked example: A single homeowner with $400,000 in assessable assets is $67,000 above the $333,000 threshold. That’s 67 lots of $1,000, so their pension reduces by 67 × $3 = $201 per fortnight from the maximum single rate.

This is often called an effective taper rate of 7.8% a year on assets above the threshold — worth knowing if you’re weighing up whether to reduce assessable assets versus keep them invested.

Assets Test vs Income Test — Which One Applies to You?

Centrelink runs both tests and pays you based on whichever produces the lower pension. This matters because:

If you have substantial assets but low income, the assets test will usually be the limiting factor.
If you have modest assets but higher income (from work, rental income, or account-based pension drawdowns), the income test might bite first.
You can’t “pick” which test applies — Centrelink calculates both automatically and pays the lower result.

This is why reducing your assessable assets doesn’t always increase your pension — if the income test is already the harsher one for your situation, trimming assets may make no difference at all.

Frequently Asked Questions

How much can I have in assets and still get the full Age Pension in 2026?

A single homeowner can hold up to $333,000, and a homeowner couple up to $499,000 combined, and still receive the maximum pension rate. Non-homeowners can hold more — $600,000 single, $766,000 for couples.

Does my house count in the Centrelink assets test?

No. Your principal home is exempt from the assets test entirely, regardless of its value.

At what asset level does the Age Pension cut out completely?

For a single homeowner, at $733,500. For a homeowner couple, at $1,102,500 combined. Non-homeowners have higher cut-offs — $1,000,500 single and $1,369,500 for couples.

What happens if my assets are just above the threshold?

Your pension doesn’t disappear — it reduces gradually. For every $1,000 above the full pension threshold, your payment drops by $3 a fortnight, until you reach the cut-off point.