As at 1 July 2026, homeowner couples receive the full Age Pension with combined assessable assets under $499,000, tapering by $3/fortnight per $1,000 above that, cutting off entirely at $1,102,500. Non-homeowner couples face higher thresholds ($766,000/$1,369,500). The family home is fully excluded from assessment, but gifts above $10,000/year (or $30,000 over five years) remain counted as assets for five years — gifting shortly before applying rarely helps.
Each year, Services Australia reviews the Age Pension assets test thresholds — the dollar limits that determine whether a retired couple receives the full pension, a reduced payment, or nothing at all. The assets test "free areas" are indexed on 1 July, and the most recent update took effect on 1 July 2026, bringing figures now in force for the start of the 2026-27 financial year. For homeowner couples with investable assets somewhere in the $500,000 to $1.1 million range, these numbers matter.
Understanding how the assets test works starts with two thresholds. The first is the full pension limit: if your combined assessable assets fall below this amount, you receive the maximum Age Pension payment. The second is the part pension cut-off: above this level, no pension is paid at all. Between the two lies the taper zone — a range in which your pension reduces gradually as your assets increase. As Services Australia explains: "When your assets are more than the limit for your situation, your pension will reduce" (Services Australia, https://www.servicesaustralia.gov.au/assets-test-for-age-pension, retrieved 4 July 2026).
For homeowner couples — the most common situation among retirees who own their own home — the current figures (effective 1 July 2026) are a combined full pension threshold of $499,000 and a part pension cut-off of $1,102,500 (Services Australia, https://www.servicesaustralia.gov.au/assets-test-for-age-pension, retrieved 4 July 2026). Couples who do not own their home face higher thresholds — $766,000 and $1,369,500 respectively — reflecting the fact that renters cannot exclude the value of a home from their assessable assets. The gap between the homeowner and non-homeowner thresholds is $267,000.
Within the taper zone — for couples with combined assessable assets between $499,000 and $1,102,500 — the pension reduces for every $1,000 of assets above the full pension threshold. Confirmed at $3 per fortnight per $1,000 since 1 January 2017 (DSS Social Security Guide 4.2.3, https://guides.dss.gov.au/social-security-guide/4/2/3; SSAct s.1064-G4). To illustrate the practical stakes using that widely reported rate: a homeowner couple with $649,000 in combined assessable assets sits $150,000 above the full pension threshold. At $3 per fortnight per $1,000 of excess, their pension reduces by $450 per fortnight — roughly $11,700 per year — compared to the maximum combined payment of $1,810.40 per fortnight (the payment rate is unchanged since 20 March 2026 and is next indexed on 20 September 2026; Services Australia, https://www.servicesaustralia.gov.au/how-much-age-pension-you-can-get, retrieved 4 July 2026).
The principal place of residence — the family home — is excluded from the assets test entirely, regardless of its value. Everything else is generally counted: bank accounts, term deposits, shares, managed funds, Exchange Traded Funds (ETFs), life insurance surrender values, superannuation balances for people who have reached Age Pension age (currently 67), investment properties, vehicles, caravans, boats, and household contents assessed at second-hand replacement value rather than replacement cost. For couples, superannuation is counted once both partners have reached Age Pension age. Where one partner is still under that age, their superannuation balance is not currently assessable — but it will enter the calculation from the date they qualify.
Gifting is an area that catches many retirees by surprise. Services Australia permits a "gifting free area" of $10,000 in a single financial year, with a rolling five-year total cap of $30,000 — meaning gifts over a five-year period cannot exceed $30,000 in total, even if each individual year's gift stays below $10,000 (Services Australia, https://www.servicesaustralia.gov.au/how-much-you-can-gift?context=22526, retrieved 4 July 2026). Gifts above these limits do not disappear from the assets assessment the moment they change hands. Under what Services Australia calls the deprivation rules, any excess remains counted as an assessable asset for five full years from the date of the gift. Giving away money shortly before applying for the Age Pension, or with the aim of reducing assessable assets, generally does not improve your assessed position the way many people expect.
If you are a homeowner couple with investable assets between $500,000 and $1.1 million, several questions are worth considering before your next review. Has the total value of your assessable assets changed over the past year — through investment returns, an inheritance, a property sale, or a maturing term deposit? If your assets have grown, the threshold update may not fully offset that growth, meaning your pension entitlement could be lower even though the thresholds have moved up. Has the composition of your assets changed, with cash now sitting in a bank account where it is fully assessable? Has your partner recently turned 67, meaning their superannuation balance now enters the calculation for the first time? And have you made any gifts above the $10,000 annual limit in the past five years? Each of these changes can shift your position within the taper zone in ways that are worth calculating precisely.
The Age Pension figures move on two separate cycles: the maximum payment rates and the part-pension cut-off limits are indexed on 20 March and 20 September, while the assets test "free areas" (the full-pension thresholds) are indexed on 1 July. The next scheduled update is 20 September 2026. Figures in this article reflect the 1 July 2026 update and should be confirmed against the current Services Australia rate tables before being relied upon for any decision.
Sources
- Services Australia — Assets test for age pension
- Services Australia — How much age pension you can get
- Services Australia — How much you can gift
Key takeaways
- As at 1 July 2026, homeowner couples receive the full Age Pension with combined assessable assets under $499,000, with the pension cutting off entirely above $1,102,500 — non-homeowner couples face higher thresholds of $766,000 and $1,369,500 respectively.
- Within the taper zone, the pension reduces by $3 per fortnight for every $1,000 of assets above the full-pension threshold (confirmed at this rate since 1 January 2017) — a couple $150,000 above the threshold loses roughly $450/fortnight, about $11,700 a year.
- The family home is fully excluded from the assets test regardless of value, but almost everything else counts — bank accounts, shares, managed funds, ETFs, investment properties, vehicles, and superannuation once both partners have reached Age Pension age (67); a younger partner's super isn't assessed until they qualify.
- Gifting above $10,000 in a financial year, or $30,000 over a rolling five years, doesn't reduce assessable assets as many expect — the excess remains counted as an asset for five full years from the date of the gift under Centrelink's deprivation rules.
- The Age Pension moves on two cycles — the payment rates and cut-off limits index on 20 March and 20 September, while the assets test free areas index on 1 July (most recently 1 July 2026) — so retirees near the taper zone should check whether asset growth, a partner turning 67, or recent gifting has shifted their position.
Frequently asked questions
What are the current Age Pension assets test thresholds for a homeowner couple?
As at 1 July 2026, a homeowner couple receives the full Age Pension with combined assessable assets up to $499,000, tapering down as assets increase, and cutting off entirely above $1,102,500. Couples who don't own their home face higher thresholds — $766,000 and $1,369,500 — reflecting that renters can't exclude a home's value from their assessable assets.
How much does the Age Pension reduce for assets above the threshold?
The pension reduces by $3 per fortnight for every $1,000 of combined assessable assets above the full-pension threshold, a rate confirmed since 1 January 2017. For example, a homeowner couple $150,000 above the threshold has their pension reduced by roughly $450 per fortnight — about $11,700 a year — compared to the maximum combined rate.
Does gifting money reduce my assessable assets for the Age Pension?
Only up to a point. You can gift up to $10,000 in a single financial year, with a rolling five-year total cap of $30,000, without it affecting your assets test. Gifts above these limits don't disappear from your assessment — the excess remains counted as an assessable asset for five full years from the date of the gift under Centrelink's deprivation rules, so gifting shortly before applying for the pension generally doesn't produce the reduction people expect.
When is my partner's superannuation counted in our Age Pension assessment?
Superannuation is only assessed once the account holder has reached Age Pension age, currently 67. For a couple where one partner is younger, that partner's super balance isn't currently assessable — but it enters the calculation automatically from the date they reach 67, which can shift the couple's position within the taper zone.