Centrelink Assets Test

Most Centrelink Pensions are now means tested, and as such they include a test on the amount of asset you own, once you are over a certain level the Centrelink Pension will cease.

Most new assets are counted fully towards the Centrelink Assets Test, there is very few exception anymore, you are able to write off any debt that the asset may have (eg: property loans), consumable assets (such as Home contents, Car, etc) can be written off at "garage sale value" and not insured or replacement value.


One the most often asked questions is about giving money to children, you can gift money away just take care how much and when you do it.

The base rule is you cant gift over $10,000 each financial year otherwise they will still count as an asset in your Centrelink Assets Test

What is often forgoten is the second part of that rule, only $30,000 can be gifted over a rolling period of 5 years

DateGiftAmount that is within the annual Gifting Free AreaAmounts within last five year's annual Gifting Free AreasAmount maintained as a financial asset
1 May 2009$8,000$8,000
(less than $10,000)
1 June 2010$13,000$10,000
$18,000$3,000 until 31 May 2015
($13,000 - $10,000)
1 April 2011$7,000$7,000
(less than $10,000)
1 May 2012$11,000$10,000
$35,000$6,000 until 1 May 2017
($11,000 -$10,000) +
($35,000 - $30,000)

At A2Z Finance Solutions (A2Z) we have simple methods of explaining how this Income Test works and we can guide you through the calculations so let us simplify your dealings with Centrelink.