Fact Sheet ●

What is the cut-off limit for

Centrelink benefits?
The Centrelink means test consists of the Income Test and the Assets Test. The test which results in the lowest entitlement is the one which
applies. Each test has cut-off limits and different limits apply to different types of benefits. In this Fact Sheet, we focus on Newstart Allowance
and the Age Pension. All figures are current as at 20 September 2017.

The eligibility criteria for Newstart Activity Test for people aged 55+ Which types of income are only partially
Allowance To qualify for Newstart Allowance you must assessed by Centrelink?
You may get Newstart Allowance if you are prove to Centrelink you are actively seeking ● Income drawn in excess of the deductible
aged 22 or over and under Age Pension age, paid work, or retraining yourself or doing amount of some annuities, grandfathered
are unemployed, and satisfy the Activity Test acceptable voluntary work. income streams such as some allocated/
as well as the Income and Assets Tests. The eligibility criteria for the Age Pension account based pensions, term allocated
pensions and complying pensions.
The Income Test for Newstart Allowance You may get Age Pension if you are aged
65.5 years and over, and your income and ● Income drawn on new and non-
The income test limits are: assets are below a certain amount. grandfathered income streams up
For full For part to the amount of income deemed by
Age pension age will increase to age 67 by Centrelink (NOTE: income drawn in
allowance allowance
(per fortnight)* (per fortnight)**
July 2023. (see table over page). excess of the deemed amount is not
Single, no children up to $104 less than The Income Test for Age Pension assessed by Centrelink).
$1,041.67 For full For part What is deeming?
Single over 60 (after nine months) payment payment
Centrelink assesses your income from
up to $104 less than (per fortnight)* (per fortnight)#
financial assets (e.g. bank accounts and
$1,126.50^ Single up to $168 less than
$1,956.80 shares etc) not by the actual income you
Partnered (each) up to $104 less than receive but by deeming. Centrelink deems
$953.00 Couple (combined) up to $300 less than
$2,996.80 you to earn 1.75% p.a. on the first $50,200
* Fortnightly income between $104 and $254 reduces fortnightly
allowance by 50 cents in the dollar. For income above $254 per fortnight, * Income over these amounts reduces the rate of pension payable by 50 (single) or $83,400 (couple) of financial
fortnightly allowance reduces by 60 cents in the dollar. Partner income cents in the dollar (single) or 25 cents in the dollar each (for couples). assets and 3.25% p.a. on all financial assets
which exceeds cut-out point reduces fortnightly allowance by 60 cents # These figures may be higher if you also get Rent Assistance with your
in the dollar. payment. above that level. NOTE: Account based
** These figures may be higher if you are eligible for Pharmaceutical
The Assets Test for Age Pension pensions (ABP) that commenced on or after
Allowance or Rent Assistance. Child maintenance is not included as
income for the personal income test. 1 January 2015 are subject to deeming. ABPs
For full For part
^ This figure includes Pharmaceutical Allowance. commenced prior to 1 January 2015, where a
Homeowners pension# pension*
The Assets Test for Newstart Allowance person was not receiving an income support
Single up to less than
$253,750 $552,000 payment from Centrelink/DVA before 1
Newstart Allowance is not payable if assets
Partnered (combined) up to less than January 2015, will be deemed.
exceed:
$380,500 $830,000 For ABPs commenced prior to 1 January
Homeowners
Non-homeowners 2015, provided that the ABP recipient
Single $253,750
Single up to less than was receiving an income support payment
Partnered (combined) $380,500
$456,750 $755,000 from Centrelink/DVA immediately before
Non-homeowners
Partnered (combined) up to less than this date and they continue to receive an
Single $456,750
$583,500 $1,033,000 income support payment, the ABP will
Partnered (combined) $583,500
# Limits will increase if Rent Assistance is paid with your pension.
* Assets over these amounts reduce pension by $3.00 per fortnight for
continue to be assessed under the old
every $1,000 above the limit (single and couple combined). rules (i.e. not deemed).
What’s not assessed as an asset by 4. Half of the money you have invested in Increase to Age Pension Age
Centrelink? a term allocated pension or complying If your Your Age
You might currently exceed the assets cut-off pension/annuity – as long as it was birthday is: Pension Age is:
limits, however it’s possible you could arrange purchased after 19 Sept 2004 but 1 July 1952 –
your finances to pass the assets test. That’s before 20 Sept 2007 – is not counted 31 December 1953 65.5
because there are a number of key assets as an asset. Money invested into these 1 January 1954 –
which are not assessed. They are: investments after 19 Sept 2007 is fully 30 June 1955 66
assessed as an asset.
1. Your home… and renovations you make 1 July 1955 –
to it. 5. A
 ll of the current value of a complying 31 December 1956 66.5
pension/annuity which was purchased From 1 January 1957 67
2. M
 oney you have in – or roll over into – a prior to 20 Sept 2004.
super fund while you are less than Age
Pension age. 6. Money you have paid as an
Accommodation Bond/Refundable
3. If you are Age Pension age and your Accommodation Deposit at an age care
partner is not, then any money your facility.
partner has in – or rolls over into – a
super fund won’t count as long as they 7. M
 oney you have paid into a Funeral Bond
remain under Age Pension age and have (up to $12,750).
not commenced an income stream with 8. The difference between the insured value
the funds. and the garage sale value for
your car and home contents may not
be assessed.

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Disclaimer: This information has been produced by Australian Unity Personal Financial Services Ltd (‘AUPFS’) ABN 26 098 725 145, of 114 Albert Road, South Melbourne, VIC 3205, AFSL & Australian Credit
Licence 234459. Any advice in this document is general advice only and does not take into account the objectives, financial situation or needs of any particular person. It does not represent legal, tax, or
personal advice and should not be relied on as such. You should obtain financial advice relevant to your circumstances before making investment decisions. AUPFS is a registered tax (financial) adviser and
any reference to tax advice contained in this document is incidental to the general financial advice it may contain. You should seek specialist advice from a tax professional to confirm the impact of this advice
on your overall tax position. Nothing in this document represents an offer or solicitation in relation to securities or investments in any jurisdiction. Where a particular financial product is mentioned, you
should consider the Product Disclosure Statement before making any decisions in relation to the product and we make no guarantees regarding future performance or in relation to any particular outcome.
Whilst every care has been taken in the preparation of this information, it may not remain current after the date of publication and AUPFS and its related bodies corporate make no representation as to its
accuracy or completeness. Published: October 2017 © Copyright 2017

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