1 January 2017 changes to the assets test for pensioners

From 1 January 2017, the assets test free area and taper rate for pensions will increase. This means you can own more assets before they affect your pension.

The asset test free area is the amount of assets you can have without affecting your pension. We will reduce your pension by $3 each fortnight for every $1,000 of assets you own over the assets test free area. This is the taper rate.

Use our estimator to find out if your pension may change. Most people will receive more or have no change to their pension. A small number of people may have their pensions reduced or cancelled. If this happens, we’ll send you a letter. You don’t need to contact us.

If you lose your pension on 1 January 2017, you will automatically get a non-income tested:

The change to the assets test may affect government subsidised aged care fees. Aged care residents will receive a letter informing them of any change in fees.

Next steps

Use the estimator, watch the video and read more about changes to the pension assets test.

The Financial Information Service is running seminars for people, including those registered for the Pension Bonus Scheme, to explain the changes to the assets test from 1 January 2017.

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Page last updated: 13 January 2017