Assets Test for Couples: How $700k Splits Into a Part Pension Each
A homeowner couple with $700,000 in combined assessable assets is above the $481,500 full-pension free area but well below the $1,085,000 cutoff — so they get a part pension. The assets test reduces the couple's combined pension by $3 a fortnight for every $1,000 over the free area, and the result is split evenly between the two partners. Below, I walk through the exact arithmetic.
The two numbers that decide everything
The Age Pension assets test has two thresholds for couples, and your combined assessable assets are measured against both. The figures below took effect on 20 March 2026 and are the current rates for the half-year to 19 September 2026.
- Free area — the level of assets below which you get the full pension. For a homeowner couple this is $481,500 combined; for a non-homeowner couple it is $739,500 combined.
- Cutoff (disqualifying limit) — the level of assets at which the part pension drops to zero. For a homeowner couple this is $1,085,000 combined; for a non-homeowner couple it is $1,343,000.
Between those two numbers you are on a part pension. The size of that part pension is set by the taper rate.
| Couple (combined assets) | Full-pension free area | Part-pension cutoff |
|---|---|---|
| Homeowner | $481,500 | $1,085,000 |
| Non-homeowner | $739,500 | $1,343,000 |
The non-homeowner free area and cutoff are higher because the value of your home is an exempt asset — it is never counted in the assets test. People who don't own a home are given a larger allowance to recognise that their savings may need to cover rent. The figures come straight from Services Australia's assets test page.
The taper rate: $3 per $1,000
For every $1,000 your combined assessable assets sit above the free area, your combined couple pension is reduced by $3 per fortnight. (For singles it is $3 per fortnight per $1,000 as well — the difference is that the couple taper applies to the combined assets figure and the combined rate.)
That $3-per-$1,000 taper is the single most important number in this article, because it is what converts a pile of assets into a fortnightly dollar reduction. It works out to roughly $78 per year of lost pension for every $1,000 of assets over the free area (a high effective "deeming" of about 7.8% on those marginal assets — which is why drawing assets down can sometimes lift your pension).
Worked example: the Nguyens and their $700,000
Meet David (67) and Linh (66) Nguyen. They own their home in Brisbane outright, so they are a homeowner couple. Their combined assessable assets are $700,000, made up of:
- $520,000 across both their account-based super pensions
- $120,000 in a term deposit and bank savings
- $45,000 car
- $15,000 of home contents (assessed at garage-sale value, not insured value)
Their home is not counted. Here is the step-by-step calculation.
Step 1 — Find the excess over the free area.
$700,000 − $481,500 (homeowner couple free area) = $218,500 excess.
Step 2 — Convert the excess into $1,000 blocks.
$218,500 ÷ $1,000 = 218.5 blocks. Services Australia applies the taper to the full excess (it does not round the blocks down), so we use 218.5.
Step 3 — Apply the $3 taper.
218.5 × $3 = $655.50 reduction per fortnight from the combined couple rate.
Step 4 — Subtract from the maximum couple rate.
The maximum couple rate (combined, including the Pension Supplement and Energy Supplement) is $1,810.40 per fortnight from 20 March 2026.
$1,810.40 − $655.50 = $1,154.90 per fortnight, combined.
Step 5 — Split it between the two partners.
A couple's pension is always paid 50/50. So David and Linh each receive $577.45 per fortnight — roughly $15,015 each per year, or about $30,030 combined per year.
Notice that the Nguyens are nowhere near losing the pension entirely. They would need their combined assets to climb to $1,085,000 — another $385,000 — before the assets test wiped the payment out.
| Step | Calculation | Result |
|---|---|---|
| Combined assessable assets | — | $700,000 |
| Less homeowner couple free area | − $481,500 | $218,500 excess |
| $1,000 blocks of excess | ÷ 1,000 | 218.5 |
| Fortnightly reduction | 218.5 × $3 | −$655.50 |
| Maximum couple rate (combined) | 20 Mar 2026 | $1,810.40 |
| Part pension (combined / fortnight) | $1,810.40 − $655.50 | $1,154.90 |
| Each partner (fortnight) | ÷ 2 | $577.45 |
Same couple, but renting. If the Nguyens did not own their home, they would be a non-homeowner couple with the higher free area of $739,500. Their $700,000 is below that, so they would receive the full pension — $1,810.40 combined per fortnight, or $905.20 each. The exact same assets produce a very different result purely because of homeowner status.
Two rules people get wrong
1. Assets are assessed jointly — whose name they're in doesn't matter
Centrelink adds together everything you and your partner own, anywhere in the world, regardless of whose name is on the account, the share certificate or the car registration. There is no benefit to shifting assets into one partner's name to "protect" them; the assets test sees a single combined figure. This is confirmed on the Services Australia assets test page: "If you're a member of a couple, the limit is for both you and your partner's assets combined."
2. The couple rate applies even if only one of you has reached pension age
This trips up a lot of couples with an age gap. If only one partner has reached Age Pension age (67), that partner can still claim — but they are assessed at the couple rate, not the single rate, and against the couple thresholds ($481,500 / $1,085,000 for homeowners). You are treated as a couple for means-testing even though only one of you is being paid.
One partner under age. Suppose Linh is 67 and claiming, but David is only 63. Linh is assessed at the couple rate against the couple thresholds, so the $700,000 calculation above still gives a combined entitlement of $1,154.90 a fortnight — but because David is not yet of pension age, the whole amount is paid to Linh as the single eligible claimant (it is not split). One important relief: David's super, while still in accumulation phase and he is under Age Pension age, is not counted in the assets test. If a big chunk of that $520,000 super is David's and still in accumulation, the assessable total — and the pension calculation — changes. It pays to check exactly whose super is in pension phase versus accumulation.
- Homeowner couple full-pension free area is $481,500; non-homeowner is $739,500 (from 20 March 2026).
- The part-pension cutoffs are $1,085,000 (homeowner couple) and $1,343,000 (non-homeowner couple).
- The taper is $3 per fortnight for every $1,000 of combined assets above the free area.
- A homeowner couple with $700,000 gets about $1,154.90 combined per fortnight — roughly $30,030 a year — split evenly.
- Assets are assessed jointly regardless of whose name they're in; the family home is exempt.
- If only one partner is of pension age, the couple rate and couple thresholds still apply — but the younger partner's super in accumulation phase is excluded.
- Centrelink applies both the assets test and the income test and pays whichever produces the lower pension. This article covers the assets test only.
Sources
Figures verified against the official Australian Government sources for the rates effective 20 March 2026:
- Services Australia — Assets test for Age Pension (free areas and cutoffs)
- Services Australia — How much Age Pension you can get (maximum couple rate $1,810.40/fortnight including supplements)
- Services Australia — Income test for Age Pension (the test applied alongside the assets test)
Frequently asked questions
Is the $700,000 figure assessed each, or for both of us together?
Together. The couple thresholds — $481,500 free area and $1,085,000 cutoff for homeowners — apply to your combined assessable assets. There is no separate per-person limit, and there is no benefit to splitting assets into one partner's name.
Does our family home count toward the $700,000?
No. Your principal home is an exempt asset and is never counted in the assets test, regardless of its value. That is why homeowners have a lower free area than non-homeowners — the non-homeowner thresholds are raised to recognise they have no exempt home.
What if my partner hasn't reached Age Pension age yet?
You can still claim once you reach Age Pension age (67), but you're assessed at the couple rate against the couple thresholds. Importantly, your younger partner's superannuation stays out of the assets test while it is in accumulation phase and they are under Age Pension age.
How much does each $10,000 of extra assets cost us?
Above the free area, every $1,000 reduces the combined fortnightly pension by $3, so $10,000 costs $30 a fortnight — about $780 a year. That is roughly a 7.8% effective rate on assets in the taper zone, which is why spending down or restructuring assets sometimes increases the pension.
Why does Centrelink also mention an income test?
Both the assets test and the income test are run on every claim, and Centrelink pays whichever one produces the lower pension. For asset-heavy retirees the assets test usually binds; for income-heavy retirees the income test may. Always check both before assuming your entitlement.
Are these 2026 figures going to change?
Yes. The assets test thresholds are indexed and typically adjusted on 1 July, while pension payment rates are indexed on 20 March and 20 September each year. The figures here are current for 20 March 2026 to 19 September 2026; confirm the live numbers on Services Australia before lodging.
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