The Government has announced changes to the Assets Test that will apply to pension entitlements from 1 January 2017.
There will be an increase in the Asset test free thresholds which will allow for an estimated 50,000 more Australians to qualify for a full pension (“SuperGuide” – June 2016).However, the rate at which a pension will be reduced when these thresholds are exceeded, will increase from $1.50 to $3.00 per fortnight for every $1,000 above the relative assets test free area. This will result in an estimated 320,000 Australians having their pensions reduced (“SuperGuide” – June 2016).
A summary of these changes are displayed on the reverse of this publication.
An investment in a funeral bond, such as Sureplan Gold, is exempt from the Income and Assets Test providing no more than two funeral funding arrangements are held and together they do not exceed the maximum eligible investment threshold (currently $12,500).
Therefore, an investment in Sureplan Gold for the maximum allowable amount of $12,500 for those affected may increase a pension entitlement by $975 per year. For a couple, each partner can invest $12,500 which may result in a combined increase in pension of $1,950 per annum or $75 per fortnight.
It is recommended you obtain independent financial advice before investing in Sureplan Gold.
SUMMARY OF ASSET TEST CHANGES
Assets Test free area for full pension
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Homeowners |
Non-Homeowners |
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| Current | 1 January 2017 | Current | 1 January 2017 | |
| Single | $209,000 | $250,000 | $360,000 | $450,000 |
| Couple | $296,500 | $375,000 | $448,000 | $575,000 |
Asset Test limits to qualify for part pension
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Homeowners |
Non-Homeowners |
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| Current | 1 January 2017 | Current | 1 January 2017 | |
| Single | $791,750 | $541,250 | $943,250 | $741,250 |
| Couple | $1,175,000 | $814,750 | $1,326,500 | $1,014,250 |