Doug is considering buying a more expensive home to reduce the number of assets assessable by Centrelink, but will this pay off?
Q. Doug
Under the assets test your pension can be reduced by varying amounts depending on how much you’re over the threshold. My question is: If you purchase a more expensive home after selling your original one, and therefore bring yourself under the asset limit, would you then have your Age Pension increased?
A. As the family home is exempt from the asset test, the value of any home you purchase would not be assessed when calculating your Age Pension payment.
However, it is worth noting that your pension payment is calculated using both the income and asset test, and you are paid the lesser amount. Therefore, if your payment under the asset test remains greater than that calculated under the income test, your actual payment may not change.