4.3.1 What is the total assessable income free area

The total assessable income free area (also referred to as pensioner threshold) is equal to the maximum total income for a full pensioner. In general, the free area is the sum of:

• Maximum basic rate (at the not a member of a couple rate),
• Pension supplement amount (excluding the Minimum pension supplement amount), and
• applicable pension income free area amount.

Note: The Aged Care legislation also provides for the total assessable income free area to be calculated using the pre-20 Sep 2009 Maximum basic rate for some residents to give an equitable outcome relative to the new pension system.