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Valuation of Assets for the Age Pension

How do you value individual assets?

A common query is how you value individual assets for the purposes of the Age pension Asset Test. In concert with our Age Pension Calculator, we have provided some reference material below to assist individuals in valuing their particular assets. Certain areas are complex, and consistent with our approach generally on this the website, this material is only intended as being general in nature, and it is only provided as background material prior to individual discussions with financial advisors or Centrelink.

Type of Asset and Valuation Approach

Reference

Cars, Motorcycles, Campervans and Boats

Current market value - we suggest the use of Redbook

http://www.redbook.com.au/

Real Estate (Investment)

Current market value - Centrelink may arrange a valuation directly at no cost

https://www.humanservices.gov.au/customer/enablers/real-estate-assets

Retirement Village Contribution

Depends on amount paid and whether you then qualify as a "homeowner"

https://www.humanservices.gov.au/customer/enablers/real-estate-assets

Granny Flats

Can be complex - the amount transferred or paid to the owner istaken as the granny flat value but a "reasonableness test" can apply to assess whether there has been a deprivation of assets.

https://www.servicesaustralia.gov.au/how-we-assess-granny-flat-interests?context=22526

Collections, Precious Metals and Jewellery

Market value

 

Home Contents

Market Value - will be assessed as being $10,000 unless the person advises a different amount

http://guides.dss.gov.au/guide-social-security-law/4/6/5/10

Bank and Term Deposits

Face Value

 

Shares, Securities and Unit Trusts Publicly Traded

Current Market Value

http://guides.dss.gov.au/guide-social-security-law/4/6/5/20

Shares and Securities NOT Publicly Traded

Amount paid for the investment, unless supporting information supports an alternative valuation

http://guides.dss.gov.au/guide-social-security-law/4/6/5/20

Unexpired Leasehold Interests

Current market value - Centrelink may arrange valauation directly at no cost

http://guides.dss.gov.au/guide-social-security-law/4/6/5/30

Life, Trauma, TPI and income protection insurance

No asset value unless the product has an investment component, in which case the value is the surrender value

http://guides.dss.gov.au/guide-social-security-law/4/6/5/70

Insurance Bonds

Account value OR the value of individual units multiplied by the number of units

http://guides.dss.gov.au/guide-social-security-law/4/6/5/70

Whole of Life or Endowment Policies

Policy surrender value

http://guides.dss.gov.au/guide-social-security-law/4/6/5/70

Income Streams

This is a complicated area. From 1 January 2015, account based income stream balances are (along with an individual's other financial assets) deemed for income test purposes. Income streams arranged earlier may be either fully or partially exempt for assets test purposes subject to conditions - contact your Income stream provider or Centrelink to precisely determine.

 

https://www.humanservices.gov.au/customer/enablers/income-streams

http://guides.dss.gov.au/guide-social-security-law/4/9/2/15

https://www.dss.gov.au/our-responsibilities/seniors/benefits-payments/age-pension/deeming-information

Superannuation - Accumulation Funds

Account balance if over pension age

http://guides.dss.gov.au/guide-social-security-law/4/6/5/75

Interest in a Deceased Estate

This is an assessable asset but Exempt until received or able to be received. Normal valuation rules apply and if you waive an interest Deprivation provisions apply

http://guides.dss.gov.au/guide-social-security-law/4/6/5/80

Loans Made

Valued at amount owed, not including any outstanding interest. Non performing loans may be exempted from deeming, subject to discretion. Guaranteeing a loan does not result in a disposal of assets.

http://guides.dss.gov.au/guide-social-security-law/4/6/5/60

Home Equity Conversion Loans

The first $40,000 of an unspent home equity conversion loan is an exempt asset, and not subject to deeming, for 90 days. Otherwise full amount is subject to deeming rates of return.

http://guides.dss.gov.au/guide-social-security-law/4/6/5/90

Overseas Income Products

Purchased price less all previous payments - reassessed annually

http://guides.dss.gov.au/guide-social-security-law/4/6/5/100

Failed Financial Investments

The last recorded value before appointment of the receiver, until the receiver quotes an alternative value. May be exempt for income deeming purposes.

http://guides.dss.gov.au/guide-social-security-law/4/6/5/110