The Age Pension is a government payment to help older Australians with their living costs. To receive this payment you must meet certain eligibility rules. One important part of these rules is the Income and Asset Test. This test decides how much pension you can get based on your income and the things you own. To make this easier the government and some financial websites offer an Age Pension Income and Asset Test Tool.
Age Pension — Income & Asset Test Tool
Estimate fortnightly Age Pension under the assets test and the income test. Final entitlement decided by Services Australia — this is an estimator only.
Assets (AUD)
Income (per fortnight) — Enter actual fortnightly amounts
Sources (used by this estimator)
- Services Australia — Income test & rules (free areas & reduction rates). :contentReference[oaicite:0]{index=0}
- Services Australia — Assets test limits (full/part pension thresholds). :contentReference[oaicite:1]{index=1}
- DSS / Social Security Guide — Assets test reduction: $3 per fortnight per $1,000 over threshold. :contentReference[oaicite:2]{index=2}
- Services Australia — Deeming rules & rates (0.25% / 2.25% with thresholds). :contentReference[oaicite:3]{index=3}
- Services Australia — Current maximum Age Pension rates (fortnightly totals). :contentReference[oaicite:4]{index=4}
What is the Age Pension Income and Asset Test Tool
This tool is an online calculator that helps you estimate your pension payment. By entering your income and assets information it shows how much pension you may be entitled to. The tool uses the current government rules and thresholds to give a clear picture of your payment amount.
Why Use the Income and Asset Test Tool
Many people find the pension rules confusing. The Income and Asset Test Tool simplifies the process. It saves time and helps you plan your finances better. You can try different income or asset amounts to see how they affect your pension. This can help you make decisions about work retirement savings or investments.
Understanding the Income Test
The income test checks money you earn from various sources. This includes wages self-employment income rental income and some investments. The government sets a limit and if your income is over this limit your pension reduces gradually. The more income you have the less pension you will receive until it stops completely.
Understanding the Asset Test
The asset test looks at what you own such as property savings shares vehicles and superannuation accounts. There are thresholds for assets too. If your assets value is above these limits your pension payment reduces. The asset test ensures those with higher wealth receive less or no pension.
How to Use the Age Pension Income and Asset Test Tool
Using the tool is easy. You need to provide information such as
- Your income from all sources
- The value of your assets including your home if applicable
- Your relationship status since thresholds differ for singles and couples
Once entered the tool calculates your estimated pension amount instantly. Some tools also provide tips on how to improve your pension eligibility.
Benefits of Using This Tool
- Quick estimation of pension payments without complex calculations
- Better understanding of how your income and assets affect pension
- Helps with retirement planning and financial decisions
- Allows you to see impact of changes like selling assets or changing work hours
Important Things to Remember
- The tool gives estimates not final decisions
- Actual pension payments depend on full assessment by Services Australia
- Rules and thresholds can change so use the latest tool version
- Always keep your financial details accurate for correct results