As the cost of living continues to climb, the Australian Government has increased asset limits for Age Pension recipients, offering thousands more Australians the opportunity to receive full or part pension payments from 1 July 2025.
These adjustments are aimed at easing financial pressure on older Australians, particularly those who own modest assets or property.
Let’s dive into the new limits, eligibility criteria, and how these changes may impact you.
What Is the Assets Test?
The assets test is one of the two primary criteria used to determine how much Age Pension a person can receive. The government evaluates the value of your assets, including property, vehicles, investments, and personal belongings (excluding your principal home, if owned).
New Asset Test Limits – Full Age Pension (From 1 July 2025)
| Situation | Homeowner | Non-homeowner |
|---|---|---|
| Single | $321,500 | $579,500 |
| Couple (combined) | $481,500 | $739,500 |
| Couple separated due to illness (combined) | $481,500 | $739,500 |
If your assets fall below these thresholds, you’re eligible for the full Age Pension.
Part Pension Limits – Age Pension (From 1 July 2025)
| Situation | Homeowner | Non-homeowner |
|---|---|---|
| Single | $704,500 | $962,500 |
| Couple (combined) | $1,059,000 | $1,317,000 |
| Couple separated due to illness (combined) | $1,247,500 | $1,505,500 |
If your assets fall between the full and part pension limits, you may receive a reduced Age Pension amount.
Transitional Rate of Pension – Asset Cutoffs
For those on transitional pensions:
| Situation | Homeowner | Non-homeowner |
|---|---|---|
| Single | $636,500 | $894,500 |
| Couple (combined) | $990,000 | $1,248,000 |
| Couple separated due to illness (combined) | $1,111,500 | $1,369,500 |
These updated limits reflect the government’s ongoing effort to align support with changing economic conditions.
What Assets Are Included?
Your assets may include:
- Real estate (excluding your home)
- Vehicles
- Superannuation and financial investments
- Business assets
- Collectibles and valuables
- Overseas property or possessions
- Debts owed to you
Asset values are assessed at current market value. If you’re part of a couple, your assets are combined when calculating eligibility.
What About Income Tests?
The income test is another method used to assess eligibility. As of July 2025:
- Singles can earn up to $218 per fortnight and still receive a full pension
- Couples can earn up to $380 combined per fortnight
Above these levels, the pension is gradually reduced until it phases out entirely.
Who Benefits Most from the New Limits?
These changes will benefit:
- Homeowners who were slightly above the old thresholds
- Pensioners who downsized or restructured finances
- Part-pension recipients who may now qualify for full pension
- Older Australians with moderate investments or savings
If you’ve previously been disqualified from Age Pension due to asset values, it’s worth checking again.
How to Apply or Update Your Status
To ensure you receive what you’re entitled to:
- Update your assets and income details through your online portal
- Review your property and bank account balances
- Apply or update your status through Centrelink
- Seek help if you believe your financial situation causes hardship
In cases of financial hardship, you may be eligible under Asset Hardship Provisions or apply via the Home Equity Access Scheme.
Strategic Tips
- Prepay funeral expenses, which are excluded from the assets test
- Use gift allowances strategically to reduce asset values
- Consider placing funds into exempt investment products
- Consult a retirement advisor to manage finances efficiently
The Age Pension boost for July 2025 is a timely and welcome change, allowing thousands of Australians—especially those on the edge of eligibility—to access crucial financial support.
With increased thresholds for both full and part pension recipients, the system is now better aligned with current economic challenges.
If you’ve previously been ineligible or only qualified for a small payment, now is the perfect time to reassess your situation, update your details, and potentially benefit from these new rules. A better-supported retirement could be just a few steps away.
FAQs
How often do asset limits change?
Asset test limits are reviewed and updated in March, July, and September each year by the Department of Social Services.
Are superannuation funds counted as assets?
Yes. Superannuation counts as an asset once you reach Age Pension age, even if it’s not yet accessed.
I own a home but also have a second property—am I eligible?
Only your main home is exempt. A second property counts toward your assessable assets and may impact your eligibility.