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Assets Test for partnered pension customers 108-03010100

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This page outlines the process of determining a partnered customer's total assessable assets and home-ownership.

Assessable assets and home-ownership determination for partnered customers

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

Expand table

Step

Action

1

Customer receiving income support payment and DVA

Has the customer been in receipt of one of the following payments on or prior to 20 March 1995, as well as, being in receipt of Department of Veterans' Affairs (DVA) War Widows and Widowers Pension since 20 March 1995:

2

Determine if the customer is a homeowner

If the customers are homeowners, 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 couple's combined 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 combined assessable assets under the pensions assets free area, to entitle the customer to a full pension under the Assets Test? For the pension assets free area, see the Pension - assets free areas and Pension - disqualifying assets limits links on the Rates and thresholds page.

4

The rate calculated under the Assets Test is the maximum rate

The maximum rate = basic Pension + Pension Supplement plus other add-ons such as Rent Assistance (RA) + Remote Area Allowance (RAA), if entitled.

Go to Step 8.

5

Determine excess asset value

Note: this should be calculated on an individual basis.

Excess assets = (total of couple's assessable assets (from Step 3) minus pensions assets free area for a couple) divided by 2.

For the pension assets free area, see the Pension - assets free areas and Pension - disqualifying assets limits links on the Rates and thresholds page.

6

Determine pension reduction amount per annum

Pension reduction amount = Excess assets (from Step 5 rounded down to nearest $250) x 19.5, then divided by 250

If converting to a daily amount divide result by 364 (not 365).

7

Determine the amount payable for the individual

Maximum rate = basic Pension + Pension Supplement + other add-ons such as Rent Assistance (RA) + Remote Area Allowance (RAA), if entitled.

Amount payable = maximum rate - pension reduction amount (from Step 6)

If the amount payable is more than nil, then the Pension Supplement Minimum Amount is paid in full.

If the amount payable is nil, the minimum payment is not payable.

8

Compare the amount determined under the Asset Test with the amount determined under the applicable Income Test for partner customers

See:

The customer's entitlement will be the lower of the entitlement under the Assets Test compared to the Income Test.

If the customer is not entitled to payment due to the assets test, check eligibility under the Assessment of assets hardship

If the customer is Age Pension age check the customer's and partner's eligibility to Commonwealth Seniors Health Card (CSHC) if:

  • a claim is rejected
  • a claim is assessed for a future grant date
  • a payment is cancelled due to assets or income

Record details on a DOC.

Note: if the customer cancelled due to 1 January 2017 budget measure they automatically receive a non-income tested Low Income Health Care Card (LIC) and a non-income tested CSHC. For more information, see: