Asset test changes for pensions from 20 September

The assets test for Age Pension and other pension payments including Disability Support Pension and Carer Payment will become much more generous from 20 September 2007, as part of the Australian Government’s plan to simplify and streamline superannuation.

From 20 September pensions will be reduced by $1.50 each fortnight for every $1000 of assets above the allowable asset limit for full pension, instead of the current $3 for the same amount of assets.

Those who may become eligible for a pension as a consequence of the change, may lodge their application from 21 June rather than waiting until 20 September.

People already receiving a part pension under the assets test will also automatically receive a pension increase from 20 September.

Based on current pension rates, the assets limits to receive a pension from 20 September will be:

· single homeowners: $520,750 (up from $343,750 from 1 July)
· single non-homeowners: $641,750 (up from $464,750 from 1 July)
· couple homeowners: $825,500 (up from $531,000 from 1 July)
· couple non-homeowners: $946,500 (up from $652,000 from 1 July)