Canberra Comment column

Changes to the Pension Asset Test were announced prior to the 2016 election and came into effect on January 1. Labor included the savings ($2.4 billion) in their election costings, thereby endorsing this policy.

There has been a lot of misinformation circulating about changes to the Pension Asset Test and I would like to clarify some matters. 

Changes to the assets test are now providing more support to people assessed under the assets test who do not own their home and those who have more modest assets.

At the same time, it is providing less taxpayer support to those who can support themselves because of the significant assets they own.

The assets test changes only affect people who have significant assets, other than their homes – so more than 90 per cent of pensioners will either be better off or have no change to their pension.

In my electorate of Forde, more than 870 pensioners have received an increase.

Under the test, pensioners will be able to own the following assets, excluding the family home, without affecting their pension (known as the free area):

We won’t be reducing the maximum rate of the pension, and we’ll continue to index pension rates each year, to make sure they keep up with any rise in the cost of living.  

As a result of this change, it is estimated that about 171,500 part rate assets tested pensioners with more modest assets will receive an average of $30 per fortnight extra, including about 50,000 part rate pensioners who will qualify for a full pension.

If you have any questions, don’t hesitate to contact my office on 3807 6340. If you would like a copy of the 2017 Age Pension Guide please call, drop in to my office or email bert.vanmanen.mp@aph.gov.au and I will happily send you a copy.