Property 101: Social Security Assets Test – rebalance assets test thresholds and taper rate from January 2017

From 1 January 2017 the assets test free area and the assets taper rate will increase.

Description of the measure

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

The assets test free areas will increase to:

• $250,000 for a single homeowner
• $375,000 for a homeowner couple
• $450,000 for a single non-homeowner
• $575,000 for a non-homeowner couple

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 be automatically 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.

Questions and answers

Who is affected by this measure

All pensioners who are assets tested will be affected by the changes from 1 January 2017.

From 1 January 2017, customers receiving or applying for an allowance will have a higher assets threshold.

This measure will also affect the means test assessment for aged care fee purposes.

Who is eligible for this measure

All pensioners who are assets tested will be affected by the changes.

From 1 January 2017, customers receiving or applying for an allowance will have a higher assets threshold, meaning more people will qualify for an allowance.

The date this measure will start and finish

This measure will start on 1 January 2017 and is ongoing.

For more information click here.