Blog Layout

Will I qualify for the Age Pension?
Liz Gibbs • June 30, 2019

Knowing whether you'll be entitled to the Age Pension is an important part of your retirement planning. Once you reach Age Pension age (66 years from 1 July 2019), you'll also need to pass two tests: the assets test and income test. Here we outline the basic thresholds that apply under each test and what types of assets and income sources are included.

Assets test

If you own your own home, to qualify for the full pension your "assets" must not be worth more than $258,500 (for singles) or $387,500 (for couples). For non-homeowners, these limits are $465,500 and $594,500.

Above these thresholds, you may qualify for a reduced pension. However, your entitlement to the pension ceases if your assets are worth more than $567,250 (for single homeowners) or $853,000 (for couples). For non-homeowners, these limits are $774,250 and $1,060,000.

So, what "assets" are included? All property holdings other than your principal home count, less any debt secured against the property.

There are also special rules for granny flat interests and retirement home contributions, so get advice before moving into these accommodation options.

Investments like shares, loans or cash accounts all count, as do your share in any net assets of a business you run and part of the market value of assets in companies or trusts you "control".

And once you reach Age Pension age, your superannuation is also included. This includes your accumulation account and most income stream accounts.

How you structure your investments could make a big difference. Consider the following tips:

  • If you sell your family home and put the proceeds towards another investment, that wealth will become subject to the assets test.
  • Withdrawing your super benefits (if, for example, you meet a condition of release) to pay more off your home mortgage, may improve your assets test position.
  • Be careful when "gifting" away assets, as those in excess of $10,000 in a financial year (or more than $30,000 across five years) will count towards the test.

However, before changing your asset structure you should ask if it makes financial sense to rely on the Age Pension? You may be better off generating a higher income from your investments.

Income test

If you earn up to $172 per fortnight as a single (or $304 as a couple), you can potentially receive the full pension. Above this, your pension entitlement will taper down, before ceasing at income of $2,024.40 per fortnight for singles and $3,096.40 for couples. A "Work Bonus" allows pensioners to earn up to $250 from employment per fortnight without it affecting their pension.

The income test is broad, including any gross amounts you earn from anywhere in the world, eg super income streams and a share of the income from any companies or trusts you "control".

Your income from certain financial assets is "deemed" at a certain rate. If your actual earnings from these investments exceed the deeming rate, the excess doesn't count towards the income test. The deeming rules apply to assets like listed shares and many super accounts.

Plan for a secure retirement

Contact us for advice on the most beneficial way to approach your income from super, the Age Pension and other investments to help you achieve the best retirement outcome.  W

  © Copyright 2019. All rights reserved. Source: Thomson Reuters.   IMPORTANT: This communication is factual only and does not constitute financial advice. Please consult a licensed financial planner, aged pension specialist or Centrelink Financial Information Officer for advice tailored to your financial circumstances about the aged pension . Brought to you by Robert Goodman Accountants.  

Office open
By Liz Gibbs March 10, 2025
With thanks to all Energex and Emergency services Crew, our electricity has been reconnected and our office is open from today 11 March. We hope you and your loved ones are safe and well following cyclone Alfred. These past few days have been challenging for many, and our thoughts are with everyone affected.
By Liz Gibbs March 10, 2025
Due to a power outage affecting the entire Samford area, the RGA Practice will be operating remotely today, 10 March, until electricity is restored. Please be assured that our team remains available and can be reached at 07 3289 1700. We appreciate your understanding and support during this time. Stay safe, and we look forward to seeing you soon.
Cyclone Alfred
By Liz Gibbs March 5, 2025
As Tropical Cyclone Alfred approaches, we want to remind everyone to take necessary precautions and ensure their safety. We have received some important information that we believe is crucial to share with you to help you prepare for the severe weather conditions ahead.
Work Health and Safety (Sexual Harassment) Amendment Regulation 2024
By Liz Gibbs February 26, 2025
In a significant move to combat workplace sexual harassment, Amendments to the Work Health and Safety Regulation 2011 (as per the Work Health and Safety (Sexual Harassment) Amendment Regulation 2024) will soon commence on 1 March 2025.
By Liz Gibbs February 25, 2025
The amount of money that can be transferred to a tax-free retirement account will increase to $2m on 1 July 2025.
What happens to your super when you die?
By Liz Gibbs February 25, 2025
The Government has announced its intention to introduce mandatory standards for large superannuation funds to, amongst other things, deliver timely and compassionate handling of death benefits. Do we have a problem with paying out super when a member dies?
By Liz Gibbs February 25, 2025
If credit card surcharges are banned in other countries, why not Australia? We look at the surcharge debate and the payment system complexity that has brought us to this point. In the United Kingdom, consumer credit and debit card surcharges have been banned since 2018. In Europe, all except American Express and Diners Club consumer surcharges are banned. And in Australia, there is a push to follow suit. But, is the issue as simple as it seems?
Babyboomer wealth
By Liz Gibbs February 25, 2025
“Succession planning, and the tax risks associated with it, is our number one focus in 2025. In recent years we’ve observed an increase in reorganisations that appear to be connected to succession planning.” ATO Private Wealth Deputy Commissioner Louise Clarke.
Penalty for False R&D claims
By Liz Gibbs February 25, 2025
A joint investigation involving the ATO found that, between 2014 and 2017, a Sydney business coach promoted unlawful tax schemes encouraging clients to lodge over-inflated, inaccurate or unsubstantiated research and development ('R&D') tax incentive claims
SMSF lodgement due dates
By Liz Gibbs February 25, 2025
All trustees of SMSFs with assets (including super contributions or any other investments) as at 30 June 2024 need to lodge an SMSF annual return ('SAR') for the 2023/24 financial year.
More Posts
Share by: