Normally only 2 hectares of land on the same title as your main home are exempt from the assets test. If you're a rural customer, all the land on this title may be exempt if you or your partner meet all of the following: have reached Age Pension age.
Under the income and assets tests, income you make from your farm, and the asset value of the farm itself, will be taken into account when working out how much pension or payment you can be paid. There are some exceptions to this rule — see the section 'asset value of your farm' in this page.
The asset value limit is the amount of assets a person can own before their pension or payment will reduce from the maximum rate under the assets test. Example: Currently the asset value limit for a single service pension homeowner is $301,750 and for a single service pension non-homeowner is $543,750.
We only include the amount of the real estate you own in your assets test. If you have a mortgage, we work out the percentage you own. To do this, we take away the loan amount you owe for the property from your share of the total value.
Assets Test
A single homeowner can have up to $656,500 of assessable assets and receive a part pension – for a single non-homeowner the higher threshold is $898,500. For a couple, the higher threshold to $986,500 for a homeowner and $1,228,500 for a non-homeowner.
If the value of your assets is above the limit listed, you may still be eligible for a part Age Pension. For every $1,000 over the limit (for your situation), your pension payment will reduce by $3 a fortnight. This is called the 'taper rate'. There's also a cut-off point.
So, how much does one need to retire in comfort? If you're single, you'll need more than $500,000, assuming you own your own home, according to the Association of Superannuation Funds of Australia Retirement Standard. That figure is worryingly higher than the average super balance.
The Work Bonus income bank is useful for pensioners who wish to work, particularly those who undertake intermittent or occasional work. Note: from 1 December 2022 to 31 December 2023, a one-off, temporary credit of $4,000 applies to Work Bonus income bank balances.
What do we mean by the 4% rule? The 4% rule states that you can comfortably withdraw 4% of your total investments in your first year of retirement and adjust that amount for inflation for every subsequent year without risking running out of money for at least 30 years.
Land over 2 hectares
Land over the first 2 hectares your home is on is included in your assets test. For example, if your home is on 6 hectares of land, 4 hectares will be included in your assets test. There may be some exceptions, read about rural customers and primary producers.
The 20 year rule is satisfied if the person: has lived on a property made up of multiple adjoining titles for the previous 20 years or more, and. has continuously lived on that property in more than one dwelling house on different titles for the last 20 years or more.
The balance of your latest super statement is included in the Age Pension assets test. In addition, deemed income from your super balance is included in your income test calculations even if you have not started a pension or income stream.
Yes, 'millionaires' can qualify for the age pension.
Around 1.6 million NSW households and 320,000 small businesses are eligible for a new National Energy Bill Relief payment in financial year 2023-24. Eligible low-income households, pensioners, self-funded retirees, families and carers will receive a one-off $500 bill relief payment towards their electricity bills.
The rates for a full Age Pension for Australian residents for the period 20 March 2023 to 19 September 2023 are listed below: Single: $1,064.00 per fortnight (approximately $27,664 per year) Couple (each): $802.00 per fortnight (approximately $20,852 per year)
By paying off your credit card, personal loan, home loan or any other debt, you will reduce the value of your assessable assets and boost your rate of pension. For example, paying off $50,000 of debt could increase your pension by $3,900 per year.
How Centrelink knows your assets without you telling them. Centrelink has multiple data-sharing agreements with government organisations like the ATO, Medicare, PayG and more. This helps them to maintain a view of your assets, and in certain circumstances they may apply additional scrutiny to individuals.
Loans. A loan (from an older person to a family member) is not included in the gifting amount and will not affect the older person's pension rate. However, this needs to be a genuine loan and Centrelink will require proper documentation and evidence, as a verbal agreement is not enough.
For example, if you are a single homeowner you can get a full pension with an asset limit of $270,500. As a couple with a home and combined assets your limit is reached at $405,000 to receive a full pension. * Anything on top of the limit will reduce your pension, but might still make you eligible for a part pension.
The first full payment at the new rates of pension will be payday 6 April 2023. The maximum rate of single service pension will rise by $37.50 to $1,064.00 per fortnight and the maximum rate for couples will increase by $28.20 to $802.00 per fortnight (each).
If the inheritance you receive when added to your already assessable assets will not exceed your personal asset limit, then your pension won't be impacted. However, if it does then it likely will be.