Centrelink Assets Test Explained: Thresholds for Every Payment
How the Centrelink assets test works in 2026. Thresholds for Age Pension, JobSeeker, DSP, and other payments. What counts as an asset, what is exempt, and how assets affect your payment.
How the Centrelink assets test works
The assets test is a means test that Centrelink uses alongside the income test to determine your eligibility for payments and how much you receive. While the income test looks at your earnings and investment returns, the assets test looks at the total value of what you own. The assets test works differently for pension-type payments and allowance-type payments. For pension payments (Age Pension, DSP, Carer Payment), the assets test operates on a taper basis — as your assets increase above the lower threshold, your payment gradually reduces until it cuts out at the upper threshold. The taper rate is $3 per fortnight for every $1,000 of assets above the lower threshold. For allowance-type payments (JobSeeker, Youth Allowance, Austudy), the assets test is a hard cut-off — if your assets exceed the threshold, you lose the entire payment. There is no gradual reduction. This means a single dollar above the threshold can cost you your entire fortnightly payment. The test applies to your assets as at the date you claim or the date of your review. You must declare all assessable assets and provide evidence of their value. Centrelink may verify asset values through data matching with the ATO, land titles offices, ASIC, and financial institutions. If both the income test and the assets test apply to your payment, Centrelink calculates your payment under each test separately and pays you the lower amount. This means whichever test is more restrictive for your circumstances determines your actual payment.
Assets test thresholds by payment (March 2026)
Here are the current assets test thresholds for all major Centrelink payments, effective from the March 2026 indexation. **Age Pension, DSP, Carer Payment — lower thresholds (full rate):** - Single homeowner: $314,000 - Single non-homeowner: $566,000 - Couple (combined) homeowner: $470,000 - Couple (combined) non-homeowner: $722,000 **Age Pension, DSP, Carer Payment — upper thresholds (payment cuts out):** - Single homeowner: approximately $695,500 - Single non-homeowner: approximately $947,500 - Couple (combined) homeowner: approximately $1,045,500 - Couple (combined) non-homeowner: approximately $1,297,500 **JobSeeker, Youth Allowance, Austudy — hard cut-off:** - Single homeowner: $301,750 - Single non-homeowner: $543,750 - Couple (combined) homeowner: $451,500 - Couple (combined) non-homeowner: $693,500 **Parenting Payment Single:** - Homeowner: $280,000 (approximate) - Non-homeowner: $522,000 (approximate) The difference between homeowner and non-homeowner thresholds is approximately $252,000, reflecting the fact that non-homeowners need to hold more assets to fund their housing costs. Your principal home is not counted as an asset — only investment properties and other real estate are assessed.
What counts as an asset (and what is exempt)
Understanding what Centrelink counts as an asset is crucial because many people overestimate or underestimate their assessable assets. Getting it wrong can mean missing out on a payment you are entitled to, or receiving an overpayment that creates a debt. **Assets that ARE assessed include:** bank accounts, term deposits, cash on hand, shares and managed funds, investment properties (market value minus any mortgage), vehicles (market value of each vehicle, though an exemption may apply for one vehicle used for essential transport), boats and caravans, business assets, loans to other people, superannuation (only if you are Age Pension age or over — under pension age, super is exempt), jewellery and artwork above normal personal use, cryptocurrency, and any other property you own. **Assets that are EXEMPT include:** your principal home (the home you live in, including up to 2 hectares of adjacent land), household contents and personal effects at normal levels (not antiques or collections), pre-paid funeral bonds up to $15,000 per person, accommodation bonds paid for aged care, certain compensation payments held in trust, aids and equipment for disability, and life insurance policies. **Superannuation is a special case.** If you are under Age Pension age (67), your superannuation balance is completely exempt from both the income test and assets test. Once you reach 67, your superannuation becomes an assessable asset and any income from it (account-based pension, lump sum withdrawals) is assessed under the income test via deeming rules. If you own assets jointly with someone other than your partner, Centrelink generally assesses your share (usually 50%) of the asset value.
How the asset test taper works for pensions
For pension-type payments (Age Pension, DSP, Carer Payment), the asset test uses a taper system that gradually reduces your payment as your assets increase above the lower threshold. The taper rate is $3.00 per fortnight for every $1,000 of assets above the lower threshold. This means for every additional $1,000 in assets above the threshold, your fortnightly pension reduces by $3.00. Here is an example for a single homeowner on the Age Pension: - Assets of $314,000 or less: full pension of $1,116.30/fn - Assets of $400,000: pension reduced by ($400,000 - $314,000) / $1,000 x $3.00 = $258.00/fn. Payment = $858.30/fn - Assets of $500,000: pension reduced by ($500,000 - $314,000) / $1,000 x $3.00 = $558.00/fn. Payment = $558.30/fn - Assets of $695,500: pension reduced to $0 (cuts out) The asset test taper creates a strong incentive to consider how you hold your assets. Spending $10,000 of assessable assets on home improvements (exempt) or pre-paid funeral expenses (exempt up to $15,000) reduces your assessable assets and can increase your pension. Remember, Centrelink applies both the income test and the asset test, and pays you the lower result. If your assessable assets are generating deemed income above the income test free area, both tests may be reducing your payment. Use our Age Pension Calculator or Benefits Check tool to model how your specific asset level affects your payment. For allowance recipients (JobSeeker, Youth Allowance, Austudy), there is no taper — it is a hard cut-off. If your assets are $1 over the threshold, you receive nothing. If they are $1 under, you receive the full payment (subject to the income test).
Strategies to manage assets for Centrelink eligibility
There are legitimate strategies to structure your assets to maximise your Centrelink entitlements. These are not loopholes — they are simply about understanding the rules and making informed decisions. Pay down your mortgage. Money in the bank is an assessable asset; equity in your home is not. If you are approaching retirement and have both a mortgage and savings, paying off the mortgage reduces your assessable assets without reducing your wealth. Pre-pay funeral expenses. Pre-paid funeral bonds are exempt up to $15,000 per person ($30,000 for a couple). This is a genuine expense that most people will eventually need to pay, and prepaying removes it from the assets test. Spend on home improvements. Renovating your kitchen, replacing the roof, or improving your garden reduces assessable assets (the money you spend) while increasing the value of your exempt asset (your home). Be aware of gifting rules. Centrelink has strict rules about reducing assets through gifts. You can gift up to $10,000 per financial year (and $30,000 over five years) without it being assessed. Any gifts above this amount are treated as a 'deprived asset' and still counted in your assets test for five years. Consider annuities and income streams. Some types of lifetime annuities receive concessional treatment under the assets test. A financial adviser experienced in Centrelink rules can help you evaluate whether this is appropriate for your situation. Review your asset valuations. Make sure your property valuations, vehicle values, and other asset estimates are accurate and current. Overestimating can cost you payment; underestimating can create a debt. Use market valuations, not replacement cost. Use our Benefits Check tool to model different asset scenarios and see how changes to your asset position affect your payment.
Next steps: check how assets affect your payment
If you are concerned about how your assets affect your Centrelink eligibility, here is what to do: 1. Make a comprehensive list of all your assets and their current market values. Include bank accounts, shares, investment properties, vehicles, superannuation (if over 67), and any other property. Subtract any debts secured against assessable assets (such as an investment property mortgage). 2. Use our Benefits Check tool to enter your asset details and see exactly how they affect your eligibility for every payment. The tool applies the correct thresholds and taper rates for your situation. 3. Use the individual payment calculators (Age Pension Calculator, Income & Asset Test Calculator) to model different scenarios. What if you paid down your mortgage? What if you spent $15,000 on a pre-paid funeral bond? What if you gifted $10,000 to your grandchildren? 4. If your assets are close to the threshold, consider booking an appointment with a Financial Information Service (FIS) officer at Services Australia. FIS provides free, independent financial information (not advice) about how Centrelink rules apply to your situation. They can help you understand the interaction between income tests, asset tests, and deeming rules. 5. If your situation is complex (you own a business, have assets in a trust or company, or have overseas assets), consider consulting a financial adviser who specialises in Centrelink and retirement planning. For workplace superannuation entitlements and pay rate information, visit FairWork Mate at fairworkmate.com.au. For savings strategies and budgeting tools, visit Savings Mate at savingsmate.com.au.
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General information and estimates only — not financial, tax, or legal advice. Always verify with Services Australia.
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