Today we are sharing a refresher on the way the asset test is applied by Centrelink and how knowing the rules can help you to maximise your entitlements.
Why are both income and assets evaluated?
The Australian Age Pension is based on a means test that combines the income test and the assets test. Generally speaking, Centrelink will determine your income first. If this falls below the limit, it will then consider your assets. If either your income or assets are above the limit for a part-Age Pension, you will be ineligible for any Age Pension benefits.
If both your income and assets are below the limit, whichever one delivers the lower Age Pension payment will be applied.