Age Pension Income Test vs Assets Test: Which One Wins?

From 20 September 2026, a single homeowner's Age Pension doesn't stop at $333,000 of assets: the assets test only starts cutting there, and the pension reaches zero at $745,750. This video walks through both tests step by step (the starting rate, the income test and deeming, the assets test, and why the lower result is paid), works an invented example, and covers the traps: couples, super, gifting, work and the dates when the numbers change. General information only — not financial advice. This video doesn't consider your personal circumstances. Rules and thresholds change; check the ATO, Moneysmart and Services Australia for your situation, or talk to a licensed financial adviser. Chapters 0:00 $745,750: the assets cut-off 0:34 The rule: two tests, the lower result 1:08 Step 1: the starting rate 1:46 Step 2: the income test 2:27 Deeming: a set return on savings 3:20 Step 3: the assets test 4:54 Step 4: the lower result wins 5:36 Ray with $300,000 (invented example) 6:59 Ray with $450,000: the assets test takes over 8:15 Traps 1–2: couples and "full pension" 9:07 Traps 3–5: super, gifting, work 10:05 Other rules and key dates 11:00 Recap and where to check Ray is an invented example (70, single, owns his home, no other income; all his money is financial assets, no car or contents counted, no Rent Assistance, normal rate). With $300,000 he gets $1,160.05 a fortnight (income test); with $450,000 he gets $886.70 (assets test). The couple example pools the same $450,000 ($891.01 each). These are simplified sums worked in fortnights; Services Australia's own figures can differ by a few cents. Rates as at 20 September 2026 (2026–27). Sources (rules and rates as at 3 October 2026; Services Australia pages were read from web.archive.org captures listed in our research notes) S1. Social Security Act 1991, Compilation No. 233 (19 Sep 2026): pension rate calculator s 1064, deeming, assets and gifting rules — https://www.legislation.gov.au/C2004A... S2. Social Security (Deeming Threshold Rates) Determination (No. 2) 2026 (F2026L01083) — https://www.legislation.gov.au/F2026L... S3. Treasury Laws Amendment (Delivering an Efficient and Trusted Tax System) Act 2026 (No. 58) — https://www.legislation.gov.au/C2026A... S4. Federal Register of Legislation: Social Security Act 1991 versions (checked 3 Oct 2026) — https://www.legislation.gov.au/C2004A... S5. Services Australia, How much Age Pension you can get (updated 20 Sep 2026) — https://www.servicesaustralia.gov.au/... S6. Services Australia, Income test for Age Pension (updated 20 Sep 2026) — https://www.servicesaustralia.gov.au/... S7. Services Australia, Assets test for Age Pension (updated 20 Sep 2026) — https://www.servicesaustralia.gov.au/... S8. Services Australia, Deeming (updated 20 Sep 2026) — https://www.servicesaustralia.gov.au/... S9. Services Australia, Asset types S10. Services Australia, Superannuation (Age Pension) S11. Services Australia, Gifting; How much you can gift S12. Services Australia, Work Bonus S13. Services Australia, Who can get Age Pension S14. Services Australia, Rent Assistance S15. Services Australia, Financial Information Service — https://www.servicesaustralia.gov.au/... S16. Services Australia, earlier (1 Jul 2026) versions of the income test, assets test and deeming pages S17. Services Australia, Financial investments S18. Our own calculation of Ray's and the couple's figures from S1, S2 and S5–S8 (re-runnable from the episode files) Kooka is an animated character, not a financial adviser. Credits Legislation from the Federal Register of Legislation (legislation.gov.au), licensed CC BY 4.0 (https://creativecommons.org/licenses/.... Rules are summarised and redrawn as our own diagrams. Services Australia material is used for facts and redrawn; using it doesn't mean Services Australia endorses this video. Music: "Clean Soul" by Kevin MacLeod (incompetech.com), licensed under Creative Commons: By Attribution 3.0 (https://creativecommons.org/licenses/.... Source: https://commons.wikimedia.org/wiki/Fi.... Looped, faded, de-clicked and level-adjusted.