FINANCE
Reducing the impact of the assets test – what you need to know
When applying for the Age Pension, your assets can make a big difference to your eligibility and payment amount. But what exactly is the assets test, and how can you manage its impact?
Centrelink uses the assets test to determine how much you own, including property( other than your home), superannuation, investments, vehicles and contents. If your assets are above the threshold, your pension payment will reduce by $ 3 per fortnight for every $ 1,000 over the limit. The limits differ depending on whether you’ re single or a couple, and whether you own your home.
The important thing to understand is that many retirees can unintentionally hold assets in ways that reduce their Age Pension unnecessarily. Sometimes this happens because they don’ t know what counts as an asset, or how Centrelink values it. Other times, it’ s because their financial position has changed over time, but their pension hasn’ t been reviewed.
There are often legitimate ways to reduce the impact of the assets test, for example, by making sure your funds are structured appropriately for your stage of life, or ensuring Centrelink’ s records reflect the current market values of your assets. Each person’ s situation is different, so there’ s no one-size-fits-all answer, but even small adjustments can sometimes make a significant difference to your payment or eligibility.
Financial advice can play a key role here. A qualified adviser can help identify strategies that align with your goals while improving your Age Pension position. For example, investing in a funeral bond( within the allowable limit) can reduce assessable assets while setting funds aside for future expenses.
Certain lifetime annuities can also receive concessional treatment under the assets test, providing both income security and a potential pension boost. In addition, new IRIS products have been developed to meet these same goals, combining flexibility and Centrelink efficiency in one. Advice ensures these strategies are used appropriately for your needs and circumstances.
If you’ re unsure how the assets test affects you, or if your pension could be higher, it’ s worth having your situation reviewed. We specialise in helping people understand and apply for the Age Pension in plain language, no forms, no online portals, just personal service and clear answers.
Call us today on 1300 222 484 to find out whether your assets are affecting your Age Pension and what steps might help improve your position.
Australia Day Award nominations now open
GET THE POWER OF AUSTRALIA’ S BIGGEST INDEPENDENT
Nominations are now open for the 2026 Australia Day Awards, a tradition that recognises the efforts of everyday Australians who go above and beyond for their local community.
Mayor of The Hills Shire, Dr Michelle Byrne encouraged residents to nominate and help a community champion get the recognition they deserve.
“ Our community is blessed with incredibly generous people and community groups who devote their time to helping others,” Mayor Byrne said.
“ So many do so behind the scenes without expecting anything in return. These awards provide an opportunity to spotlight the good deeds that help our region thrive.“ Please nominate someone and help us bring their contributions to our community into the limelight.”
There are five categories for the 2026 Australia Day Awards:- Citizen of the Year- Young Citizen of the Year- Nominees must be aged 24 years or under as of Wednesday, 21 January 2026- Sporting Citizen of the Year- Environmental Citizen of the
Year- Community Group of the Year Nominees must be residents of The Hills Shire Local Government Area( LGA) and must have made a positive impact on The Hills Shire community over the past year.
Finalists will be announced in the lead up to Australia Day 2026.
To nominate someone, visit www. thehills. nsw. gov. au and search for‘ Australia Day Awards’ to fill out the online form.
Submissions close at 12 noon on Wednesday, 10 December 2025.
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THE HILLS INDEPENDENT theindependentmagazine. com. au MERRY CHRISTMAS & HAPPY HOLIDAYS! ISSUE 126 // DECEMBER 2025 11