Social Security Assets Test – rebalance assets test thresholds and taper rate

Starts from 1 January 2017

Who it affects: all pensioners who are assets tested will be affected by the changes from 1 January 2017. Some pensioners who are income tested, allowance claimants and aged care recipients requiring means test assessments may be affected.

The assets test free area is the amount of assets above which allowances are not paid and pensions are reduced.

Threshold Cut-out point
Single Homeowner $209,000 $793,750

Non-homeowner $360,500 $945,250
Couple Homeowner $296,500 $1,178,500

Non-homeowner $448,000 $1,330,000

The assets test free areas will increase to:

1 Jan 2017
Threshold Cut-out point
Single Homeowner $250,000 $542,500

Non-homeowner $450,000 $742,500
Couple Homeowner $375,000 $816,000

Non-homeowner $575,000 $1,016,000

Note: Current thresholds increase with inflation. 1 January 2017 cut off points are an approximation. Final figures will be issued closer to 1 January 2017.

Pensioners will be subject to a new taper rate of $3 for every $1,000 above the new assets test free areas.

Income support recipients who lose their payment entitlement on 1 January 2017 as a result of the changes will automatically be issued with a Commonwealth Seniors Health Card, or a Health Care Card for those under age pension age.

They will be exempt from the usual income test requirements for these cards indefinitely.

Bridges Financial Services Pty Ltd (Bridges). ABN 60 003 474 977. ASX Participant. AFSL No 240837. This is general advice only and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this document, you should assess your own circumstances or seek advice from a financial adviser and seek tax advice from a registered tax agent. Information is current at the date of issue and may change. Examples are illustrative only and are subject to the assumptions and qualifications disclosed. Part of the IOOF group.

Bridges Financial Services Pty Ltd (Bridges) may use information you provide to contact you to arrange a meeting with a Bridges financial planner to provide you with financial advice or financial products.
As we are part of the IOOF group, the personal information you provide to us will be used in accordance with our Privacy policy.