Centrelink Asset Test changes now law

These changes will apply from 1 January 2017 and will increase the asset test free level for age pensions and service pensions as well as disability.
From 1 January 2017 the asset test free levels will be:

•    Single homeowners - $250,000 rather than the current $202,000

•    Homeowner couples - $375,000 rather than the current $286,500

•    Single non-homeowners - $450,000 rather than the current $348,500

•    Non-homeowners couples - $575,000 rather than the current $433,000.

The asset test free level is the amount of assets which an individual or couple can have without reducing their entitlement to the pension.

Additionally, the taper rate will increase from $1.50 per $1,000 of assets to $3.00 per $1,000 of assets.  The taper rate is the rate at which the pension is reduced where the value of assets counted for the purposes of the asset test exceed the asset test free level.

The Government’s previous enacted measure which had the effect of pausing the asset test free levels as at 1 January 2017 for three years (this was enacted by the Social Services and Other Legislation Amendment (2014 Budget Measures No 6) Act 2014) has been repealed.  Consequently, there will be no pausing of the asset test free levels.

The amendment legislation also provides that anyone who ceases to be entitled to a pension as at 1 January 2017 by reason of the assets test will have their qualification for a Health Care Card determined without having to satisfy the income tests normally associated with concession cards.  For individuals who have attained the age requirement for the age pension, the concession card will be the Seniors Health Care Card.  For individuals who have not attained the age requirement for the age pension, the concession card will be the Health Care Card.

The waiving of the income test for the concession card will only apply if the individual was in Australia on 1 January 2017 or they were overseas on 1 January 2017 but return to Australia within 19 weeks of that date.  The card will automatically be issued for individuals who are entitled to a concession card and who are in Australia on 1 January 2017.  For individuals who are not in Australia on 1 January 2017 but entitled to a concession card, the card will only be issued upon their application for the card.

The relevant act is Social Services Legislation Amendment (Fair and Sustainable Pensions) Act 2015.