Assets Test for single pension customers 108-03010090

The calculations are done as a per annum figure.

Single homeowner has $280,000 in assets. Assets free area used before payments are reduced is $250,000. The rate calculation is in three steps:

• 1. Calculate excess assets using formula:
  Excess assets = Total of person's assessable assets - pension assets free area
  $280,000 - $250,000 = $30,000 excess assets
• 2. Calculate the pension reduction amount using formula:
  Excess assets (rounded down to nearest $250) x 19.50, then divided by 250
  ($30,000 x 19.50) divided by 250 = $2,340 pension reduction amount
• 3. Determine amount payable using formula:
  maximum rate - pension reduction amount
  $22,804.60 - $2,340 = $20,464.60 pa.

Between 20 September 2007 and 1 January 2017, the rate of pension payable was reduced by $1.50 per fortnight for every $1,000 of assessable assets above the pension asses free area.

Determine pension reduction amount per annum:

Pension reduction amount = Excess assets (as per Step 5 in the Determining assessable assets and home-ownership table on the Process page, rounded down to nearest $250) x 9.75, then divided by 250.

To convert to a daily amount divide result by 364 (not 365).

Prior to 20 September 2007 the rate of pension payable was reduced by $3.00 per fortnight for every $1,000 of assessable assets above the pension assets free area.

Determine pension reduction amount per annum:

Pension reduction amount = Excess assets (as per Step 5 of Detail, rounded down to nearest $250) x 19.50, then divided by 250.

To convert to a daily amount divide result by 364 (not 365).

Pensions Assets Test prior to 20 September 2007

• Homeowner - single
• For full pension up to $166,750
• For part pension up to $343,750
• Non-homeowner - single
• For full pension up to $287,750
• For part pension up to $464,750