Pension Asset Test Calculator Australia

Free Centrelink Age Pension calculator for the assets test. Estimate entitlement from assessable assets, homeowner vs non-homeowner status, free areas, cutoffs and the 7.8% taper. Updated with current 2025-26 rates.

What This Calculator Does

Looking for a pension asset test calculator or a Centrelink Age Pension calculator for today’s snapshot? This tool runs the assets test only: enter assessable assets and homeowner status to see entitlement before you model a full retirement path.

The Age Pension asset test is one of two tests (asset test and income test) that determine your pension eligibility. Centrelink applies both tests and pays you the lower result.

This calculator uses the current Age Pension asset test rates to show:

  • Your estimated Age Pension payment
  • How much of your assets are above the free threshold
  • How the 7.8% taper rate reduces your pension
  • Your asset test cutoff point (zero pension)

How the Asset Test Works

The asset test has three components:

  • Free threshold: Assets below this amount don't affect your pension
  • Taper rate: $3 per fortnight reduction for every $1,000 above the threshold (7.8% annually)
  • Cutoff: Asset level where pension reduces to zero

Homeowners and non-homeowners have different thresholds because your home is exempt from the asset test. See how couples and singles are treated differently in the asset test, or check the live Age Pension thresholds hub for the rates used across SuperCalc Pro.

What Assets Are Included?

The asset test includes:

  • Superannuation (if you're pension age)
  • Bank accounts and term deposits
  • Shares and managed funds
  • Investment properties
  • Vehicles (excluding one car)
  • Boats, caravans, and other valuables

Your home is exempt if you live in it. This is the key difference between homeowners and non-homeowners in the asset test. Learn more about what assets are exempt from the Age Pension asset test.

Super Withdrawals vs Deemed Income

IMPORTANT: Super withdrawals are NOT counted as income for Age Pension purposes.

Your super balance is treated as a financial asset and generates deemed income based on deeming rates (1.25% / 3.25% from 20 March 2026), NOT your actual withdrawals.

Example: If you have $400,000 in super and withdraw $40,000/year:

  • Deemed income: ~$11,700 (what Centrelink counts)
  • Actual withdrawal: $40,000 (NOT counted as income)

Drawing down more from super does NOT reduce your pension. Only the balance matters.

Calculate Your Age Pension

⚠️ Simplified Calculation: This is a rough estimate using current rates. For detailed multi-year projections, Monte Carlo analysis, and comprehensive retirement planning, use the Advanced Retirement Calculator.

Include super, savings, investments (exclude your home if you own it)

Wages, rent, foreign pensions (NOT super withdrawals - your super is assessed under deeming rules)

Try the Complete Retirement Calculator

Model your entire retirement with historical stress tests, year-by-year Age Pension, couples scenarios, and PDF/CSV export. Run your plan free first — upgrade only if you want unlimited runs and saved scenarios.

Try free Advanced runs

Related Articles

Age Pension Exempt Assets

What assets are exempt from the Age Pension asset test and how exemptions affect your pension entitlement.

Age Pension: Couples vs Singles

How couples and singles are treated differently in the Age Pension asset test and income test.

How Centrelink Deeming Works

Understanding deeming rates and how Centrelink calculates deemed income from your financial assets.

Age Pension Asset Test 2025: Complete Guide

Detailed explanation of thresholds, exemptions, and strategies to maximize your pension.

Younger Partner and Age Pension

How a younger partner still working affects household pension when only one partner is eligible.

The 7.8% Taper Trap

Why the Age Pension taper rate forces you to spend down your super principal.

How Much Super Do I Need to Retire?

Calculate your retirement super needs with Age Pension integration and lifestyle standards.

Frequently Asked Questions

What assets count toward the Age Pension asset test?
The asset test includes superannuation (for retirees), bank accounts, shares, investment properties, cars (excluding one vehicle), boats, and other valuable items. Your home is exempt if you're a homeowner. Assets are subject to deeming rules for income calculation.
What is the Age Pension asset test taper rate?
The taper rate is $3 per fortnight for every $1,000 of assets above the free threshold. This equals 7.8% annually. For example, if you have $50,000 above the threshold, your pension reduces by $150 per fortnight ($3,900 per year).
What are the 2025-26 asset test thresholds?
For homeowners: singles $327,000 (cutoff $727,000), couples $490,500 (cutoff $1,093,500). For non-homeowners: singles $590,000 (cutoff $990,000), couples $753,500 (cutoff $1,356,500). These thresholds are indexed twice yearly in March and September.
How does being a homeowner affect my Age Pension?
Homeowners have lower asset test thresholds. Your home is exempt from the asset test, but this exemption means lower free thresholds. Non-homeowners get an additional $263,000 (singles) or $263,000 (couples) in asset allowances to account for rental costs.
Are super withdrawals counted as income for Age Pension?
No. Super withdrawals are NOT counted as income for Age Pension purposes. Your super balance is assessed as a financial asset, and the income from it is calculated using deeming rates (1.25% below threshold / 3.25% above, from 20 March 2026), not your actual withdrawals.

Example: $400,000 in super generates ~$11,700 deemed income, regardless of whether you withdraw $20,000 or $60,000 per year. Only wages, rent, and foreign pensions count as actual income.

Disclaimer: This calculator is for informational purposes only and does NOT constitute financial advice. SuperCalc Pro Pty Ltd does not hold an Australian Financial Services License (AFSL). Always consult Services Australia or a licensed financial adviser for advice specific to your circumstances.