Change to the assets test for 2017October 14, 2016
clients can invest as much as they like to cover their future funeral expenses without negatively impacting their pension.
The Government has announced that in 2017 the assets test free areas will increase to:
- $250,000 for a single homeowner
- $375,000 for a homeowner couple
- $450,000 for a single non-homeowner
- $575,000 for a non-homeowner couple
For assets held above the new assets test free areas, pensioners will be subject to a new ‘taper rate’ of $3 for every $1,000 of assets owned above the figures shown above.
As an example of what this means, an extra $10,000 in assets over the test free area will reduce the aged pension entitlement by $30 per fortnight.
What’s more, for those who are close to the test free threshold, contributing to a funeral plan may be the difference that gives entitlement to a pension and the associated benefits that were not previously available.