The income and asset test free thresholds (ie income and assets which can be held without triggering a reduction in the age pension) will be paused for 3 years from 1 July 2014.
The current income test free threshold is $156 per fortnight (single) and $276 per fortnight (couple). The maximum age pension reduces by 50 cents for each $1 of income above the threshold.
The current assets test free threshold for single pensioners is $196,750 (homeowner) and $339,250 (non-home owner) while for couple pensioners is $279,000 (homeowners) and $421,500 (non-homeowners). The maximum age pension reduces by $1.50 per fortnightly payment for each $1,000 of assets in excess of the threshold.