Note: this information is current at the time of publication, 6 January 2016. The Age Pension asset test limits are updated in January, March, July and September each year. For current asset test limits, visit the Department of Human Services website.
The 2015 Commonwealth and WA State Government budgets included changes that have important implications for many older Australians. These are:
To help you make sense of these changes, we explain the current and new rules for these schemes. At the end of this article, you'll find tips on what you can do now to help minimise the impact on your retirement income.
Current Age Pension rules
The Age Pension is a Commonwealth government scheme that provides older Australians with income support and a range of concessions. It acts as a safety net for those who may not have enough savings for their retirement.
To be eligible for the Age Pension, you need to meet age and residential requirements. Centrelink then uses an income and assets test to work out how much pension you receive.
From 1 July 2017, the qualifying age for Age Pension will increase from 65 years to 65 years and 6 months. The qualifying age will then increase by 6 months every 2 years, reaching 67 years by 1 July 2023.
Assets test
The assets test looks at the value of all assets owned by a single person or couple, except their family home, to work out how much pension they receive. This test includes an upper and lower limit (also known as the upper and lower threshold)1.
The lower threshold defines the value of assets that a person can have while receiving the full Age Pension. Asset values below the lower threshold do not affect an eligible person's pension. Any assets over this threshold reduce the amount of pension a person receives, until the value reaches the upper threshold, at which point the pension cuts off.
If the value of assets fall between the upper and lower thresholds, the 'taper rate' determines how much pension they receive. For every $1,000 of assets over the lower limit, a person's pension payments reduce by the taper rate, until they are no longer eligible. For current asset test limits, visit the Department of Human Services website.
New Age Pension rules
On 30 June 2015, legislation was passed to increase the assets test free area and taper rate. These changes will take effect from 1 January 2017.
The lower threshold will increase from $205,500 to $250,000 for a single homeowner and from $291,500 to $375,000 for home-owning couples. For a single non-homeowner, the lower threshold will increase from $354,500 to $450,000, and from $440,500 to $575,000 for couples who do not own their own home. This will allow a greater number of pensioners to receive a full or increased pension.
At the same time, however, the taper rate will increase. For every $1,000 of assets over the lower threshold, the pension rate will reduce by $3.00 a fortnight, instead of the current rate of $1.50. This will mean those with a higher value of assets will receive less payment or lose their pension altogether.
WA Seniors Card changes: effective 1 July 2015
Meanwhile, the WA State Government has tightened eligibility for the WA Seniors Card and reduced some benefits to card holders.
The WA Seniors Card provides discounts on goods and services from around 500 businesses. For many card holders, however, the main benefit is the 25% discount on water and local government rates. Those who also hold a Commonwealth Seniors Health Card are entitled to a further 25% discount.
From 1 July 2015, discounts were capped at $600 a year for Water Service Charges and $550 a year for Local Government Rates. In addition, the Energy Assistance Payment (formally the Cost of Living Assistance), is now limited to people holding a means-tested Commonwealth Seniors Health Card, Health Care Card or a Pensioner Concession Card.
This financial year, the eligible age for the WA Seniors Card also increased from 60 to 61 for new applicants. The eligible age will continue to rise by one year every two years, to 65 by 1 July 2023. If you currently hold a WA Seniors Card you are not affected.
What you can do now
You should stay up to date with changes to government support services and consider how these changes may impact your own situation.
GESB offers a comprehensive retirement planning day for members who are close to retirement. Our speakers provide an overview of your retirement options, our retirement income products, and Centrelink services.
If you are still working, there are a number of things you can do to help you save for retirement. To find out more, read our article Are your retirement savings on track?
If you do not qualify for the pension, you may be eligible for other Commonwealth Government support services, such as the Commonwealth Seniors Health Card. For more information, visit the Department of Human Services website or contact Centrelink on 13 23 00.
For information on the WA Seniors Card, visit the Department of Local Government and Communities website or call (08) 6551 8800 or 1800 671 233 (country free call).
1 The Age Pension asset test limits are updated in January, March, July and September each year.
Thank you for printing this page. Remember to come back to gesb.wa.gov.au for the latest information as our content is updated regularly. This information is correct as at 23 June 2026.