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 BoatsCurrent market value - we suggest the use of Redbook |
http://www.redbook.com.au/ |
Real Estate (Investment)Current market value - Centrelink may arrange valuation directly at no cost |
https://www.humanservices.gov.au/customer/enablers/real-estate-assets |
Retirement Village ContributionDepends on amount paid and whether you then qualify as a "homeowner" |
https://www.humanservices.gov.au/customer/enablers/real-estate-assets |
Granny FlatsMarket value - As in realestate |
https://www.humanservices.gov.au/customer/enablers/granny-flat-right-or-... |
Collections, Precious Metals and JewelleryMarket value |
|
Home ContentsMarket 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 DepositsFace Value |
|
Shares, Securities and Unit Trusts Publicly TradedCurrent Market Value |
http://guides.dss.gov.au/guide-social-security-law/4/6/5/20 |
Shares and Securities NOT Publicly TradedAmount 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 InterestsCurrent market value - Centrelink may arrange directly at no cost |
http://guides.dss.gov.au/guide-social-security-law/4/6/5/30 |
Life, Trauma, TPI and income protection insuranceNo 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 BondsAccount value OR the value of individual units multiplies by the number of units |
http://guides.dss.gov.au/guide-social-security-law/4/6/5/70 |
Whole of Life or Endowment PoliciesPolicy surrender value |
http://guides.dss.gov.au/guide-social-security-law/4/6/5/70 |
Income StreamsThis a very 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/ag... |
Superannuation - Accumulation FundsAccount balance if over pension age |
http://guides.dss.gov.au/guide-social-security-law/4/6/5/75 |
Interest in a Deceased EstateThis 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 MadeValued 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 |
Reverse MortgagesThe first $40,000 of an unspent reverse mortgage 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 |
Private Domestic AnnuitiesAssessed on asset value provided by an Actuary, reassessed annually |
http://guides.dss.gov.au/guide-social-security-law/4/6/5/100 |
Overseas Income ProductsPurchased price less all previous payments - reassessed annually |
http://guides.dss.gov.au/guide-social-security-law/4/6/5/100 |
Failed Financial InvestmentsThe 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 |
Commutated Foreign Income StreamsAssessed only under the Assets test, but also assessable as income for 12 months after commutation. |
http://guides.dss.gov.au/guide-social-security-law/4/9/1/10 |
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