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Assets Test for single pension customers 108-03010090

This page contains the processing information to assist in determining a customer's total assessable assets and home-ownership.

Determining assessable assets and home-ownership

This table describes the process of determining a customer's total assessable assets and home-ownership.

Step	Action
1	Customer receiving income support payment and DVA Has the customer been in receipt of one of the following payments on or before 20 March 1995 and been in receipt of Department of Veterans' Affairs (DVA) War Widows and Widowers Pension since 20 March 1995: Age Pension Carer Payment (CP) Disability Support Pension (DSP), or Wife Pension (WP)? Yes, see Completing Department of Veterans' Affairs (DVA) clearances and income coding. Procedure ends here No, go to Step 2
2	Determine if the customer is a homeowner If the customer is a homeowner, the value of assessable assets allowed before there is any effect on the rate of pension is less than for non-homeowners.
3	Determine the customer's assessable assets Check Pensions Income and Asset Summary (PIAS) screen for total amount of assets. If the customer is eligible for assessment under the transitional rules for pension customers, the rate will need to be calculated under both the current Means Test rules and the transitional Means Test rules, with the higher rate applied to the customer. This procedure covers the current Assets Test calculation only. Are the customer's assets under the pensions assets test free area to entitle the customer to a full pension under the Assets Test? For the pensions assets test free area, see Pensions Asset Free Areas and disqualifying limits link on the Rates and thresholds page. Yes, go to Step 4 No, go to Step 5
4	The rate calculated under the Assets Test is the maximum rate Maximum rate = basic Pension + Pension Supplement + other add-ons such as Rent Assistance (RA) + Remote Area Allowance (RAA), if entitled. Go to Step 8.
5	Determine excess asset value Excess assets = total of person's assessable assets (from Step 3) - pensions assets free area.
6	Determine pension reduction amount per annum Pension reduction amount = excess assets (from Step 5 rounded down to nearest $250) x 19.50, then divided by 250 To convert to a daily amount divide result by 364 (not 365).
7	Determine the amount payable (including Rent Assistance and Pension Supplement) Amount payable = maximum rate - pension reduction amount. If the amount payable is $1 or more, the Pension Supplement Minimum Amount is payable in full. If the amount payable is nil, the Pension Supplement Minimum Amount is not payable.
8	Compare the amount determined under this procedure with the amount determined under the procedure for the Income Test for single pension customers See: Income Test for single pension customers The customer's entitlement will be the lower of the entitlement under the Assets Test compared to the Income Test.
9	Compare the amount determined under the Asset Test with the amount determined under the applicable Income Test for single customers See: Income Test for single pension customers Income Test for Disability Support Pension customer under 21 years with no dependent children, affecting income at 19 September 2009 Income Test for Disability Support Pension customer under 21 years with no dependent children If the customer is not entitled to payment due to the assets test, check eligibility under the Assessment of assets hardship. Check the customer's and partner's eligibility to Commonwealth Seniors Health Card (CSHC) if a claim is rejected, assessed for a future grant date, for example, status ASS-ATT, or if payment is cancelled due to assets. Record details on a DOC.