Age Pension for a Couple Who Own Their Home: Worked Example on $600,000 of Assets
A home-owning couple, both 67, with $600,000 in financial assets plus a $30,000 car and contents will get about $1,364.90 a fortnight combined (roughly $682.45 each) — a part Age Pension, not the full rate. Their pension is reduced by the assets test, because their $630,000 of assessable assets sits well above the $481,500 free area for a couple who own their home. They keep the part pension up to $1,085,000 in assets.
This is one of the most common questions I get asked: "We own our home and have around $600,000 saved — how much Age Pension will we get?" The honest answer is "it depends on which test bites harder." Centrelink runs both an assets test and an income test, then pays you whichever produces the lower payment. Below I'll work the exact numbers for a real-world couple so you can see precisely where the figure comes from.
The two figures every couple needs first
For a couple where both partners are of Age Pension age, the maximum payment from 20 March 2026 is $905.20 each, or $1,810.40 combined per fortnight. That headline rate is the ceiling — it includes the base rate, the Pension Supplement and the Energy Supplement. Source: Services Australia — How much Age Pension you can get.
Then there are the thresholds that decide how much of that you actually keep:
| Test (couple, homeowner) | Free area (full pension up to) | Cut-off (no pension above) | Reduction rate |
|---|---|---|---|
| Assets test | $481,500 | $1,085,000 | $3 per fortnight for every $1,000 over the free area (combined) |
| Income test | $380 per fortnight (combined) | $4,000.80 per fortnight (combined) | 50c for every $1 over the free area (combined) |
Thresholds effective from 20 March 2026. Sources: Assets test for Age Pension and Income test for Age Pension, Services Australia.
It's the couple's combined assets — not each partner's
This trips a lot of people up. The free area and cut-off are combined figures for the couple. Centrelink adds together everything both of you own, regardless of whose name it's in — both super balances (once you're Age Pension age, your super counts as a financial asset), bank accounts, shares, investment properties, the car, and home contents. There is no "$481,500 each." The single threshold covers the household.
Your principal home is exempt from the assets test entirely, no matter what it's worth, as long as you live in it. That's why a "homeowner" gets a lower free area than a non-homeowner: the system assumes you've already housed yourself.
Worked example — Geoff & Lyn, both 67, homeowners
Their situation: Geoff and Lyn live in their own (mortgage-free) home in Geelong. Between them they have $600,000 in financial assets (super in account-based pensions, term deposits and a small share parcel) plus a $30,000 car and home contents. Their home is exempt and not counted.
Step 1 — Total assessable assets:
$600,000 (financial) + $30,000 (car + contents) = $630,000 combined.
Step 2 — Run the ASSETS test:
Assets over the free area: $630,000 − $481,500 = $148,500.
Number of whole $1,000s: $148,500 ÷ $1,000 = 148.5.
Reduction: 148.5 × $3 = $445.50 per fortnight off the combined maximum.
Pension under the assets test: $1,810.40 − $445.50 = $1,364.90 per fortnight combined.
Step 3 — Run the INCOME test (via deeming):
Centrelink doesn't ask what their investments actually earn — it "deems" a return on the $600,000 of financial assets (the car and contents aren't financial, so they don't get deemed).
First $106,200 @ 1.25% = $1,327.50 per year.
Remaining $493,800 @ 3.25% = $16,048.50 per year.
Total deemed income = $17,376.00 per year ÷ 26 = $668.31 per fortnight combined.
Income over the free area: $668.31 − $380 = $288.31.
Reduction: $288.31 × 50c = $144.16 per fortnight off the combined maximum.
Pension under the income test: $1,810.40 − $144.16 = $1,666.24 per fortnight combined.
Step 4 — Centrelink pays the LOWER of the two:
Assets test result $1,364.90 < income test result $1,666.24.
The assets test wins. Geoff & Lyn receive $1,364.90 per fortnight combined — split as roughly $682.45 each.
That's about $35,487 a year in Age Pension between them, on top of whatever they draw from their own super. They're "asset-test sensitive": every extra $10,000 they hold costs them $30/ft ($780/yr), and every $10,000 they spend down or gift (within the gifting limits) increases their pension by the same amount.
Why deeming rates matter even if you don't think you have "income"
Plenty of couples tell me "we have no income, it's all in super." Under the Age Pension rules that doesn't matter — once you reach Age Pension age, Centrelink applies deeming to your financial assets: a notional rate of return, whether or not you actually earn it. From 20 March 2026 the couple deeming rates are 1.25% on the first $106,200 of combined financial assets and 3.25% on the balance above that. Source: Services Australia — Deeming.
For Geoff and Lyn, deeming gave a deemed income low enough that the income test wasn't the binding one. For couples with similar assets but a tiny home and a big investment portfolio held outside super, the picture can flip. The rule of thumb: if your assessable assets are high relative to your deemed income, the assets test usually decides your payment.
The couple homeowner cut-off — and the "one partner not yet 67" trap
A couple who own their home stops receiving any Age Pension once their combined assessable assets exceed $1,085,000, or once their combined assessable (deemed) income exceeds $4,000.80 per fortnight. Either limit cancels the payment — again, Centrelink uses whichever bites first.
When only one partner is Age Pension age: you're still assessed as a couple. The applying partner gets the couple (member-of-a-couple) maximum rate of $905.20/ft, not the higher single rate — but the tests still use the combined couple thresholds ($481,500 free area, $380/ft income free area) against both your assets and income. This often means the older partner gets a smaller-than-expected payment, because the younger partner's super and savings are counted in full. One important exception: a younger partner's super stays exempt from both tests while it remains in the accumulation phase and they haven't reached Age Pension age — a genuinely useful planning lever. Always confirm your own situation with Services Australia or a licensed financial adviser.
| Couple, homeowner, both Age Pension age | Combined assets | Approx. combined pension/ft |
|---|---|---|
| Full pension (at or under free area) | Up to $481,500 | $1,810.40 |
| Our worked example | $630,000 | $1,364.90 |
| Higher assets | $850,000 | $705.40 |
| At the cut-off | $1,085,000 | $0 |
Illustrative; assumes the assets test is the binding test and assets are above the deemed-income comparison point. Your figure depends on the mix of assets vs. income. Check the official Payment and Service Finder.
How to get your own number
- List every assessable asset for both of you (super in pension phase, bank, shares, managed funds, the car, contents, any second property). Leave out your home.
- Run the assets test: (total − $481,500) ÷ 1,000 × $3 = the fortnightly reduction; subtract from $1,810.40.
- Run the income test: deem your financial assets (1.25% on the first $106,200, 3.25% above), add any other income, subtract $380/ft, multiply the excess by 50c, subtract from $1,810.40.
- Take the lower result. That's your combined fortnightly pension; halve it for the per-person amount.
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FAQ
How much Age Pension will a couple get if they own their home and have $600,000 in financial assets?
About $1,364.90 per fortnight combined (roughly $682.45 each), assuming a $30,000 car and contents on top. Their $630,000 of assessable assets is above the $481,500 free area, so the assets test reduces the maximum $1,810.40/ft couple rate by $445.50/ft. The income (deeming) test gives a higher figure, so it isn't the one that applies.
Is the $481,500 free area for each partner or for the couple together?
For the couple together. Centrelink combines all assets owned by both partners — regardless of whose name they're in — and tests the total against the single combined threshold. There is no separate allowance per person.
At what level of assets does the Age Pension stop for a home-owning couple?
The part pension cancels once a home-owning couple's combined assessable assets exceed $1,085,000, or once their combined assessable income exceeds $4,000.80 per fortnight — whichever happens first.
Does our super count toward the Age Pension assets test?
Once you've reached Age Pension age (67), your super is counted as a financial asset and is also subject to deeming. A younger partner's super stays exempt from both tests while it's still in accumulation phase and they haven't reached Age Pension age.
What are the 2026 deeming rates for a couple?
From 20 March 2026: 1.25% on the first $106,200 of combined financial assets and 3.25% on everything above that. Deeming applies a notional return whether or not your investments actually earn it.
What happens if only one of us has reached Age Pension age?
You're still assessed as a couple using the combined thresholds, and the applying partner receives the member-of-a-couple maximum rate ($905.20/ft) rather than the single rate. Your combined assets and income are counted, though a younger partner's accumulation-phase super is excluded until they reach pension age.