Car Ownership and the Age Pension: Do Your Vehicles Count as Assets?
For many retirees, a car isn’t just a mode of transport — it’s a vital tool for independence. Whether it’s driving to medical appointments, visiting family, or simply enjoying a day out, having a vehicle makes life more accessible and enjoyable. But when it comes to the Age Pension, one of the most common questions we hear is: “Does Centrelink count my car as an asset?”
The short answer is yes — vehicles are included in Centrelink’s assets test. But there are some important details to understand.
How Centrelink Assesses Vehicles
Centrelink counts most forms of motor vehicles and recreational transport as assets. This includes:
Cars and motorbikes
Caravans and campervans
Boats and trailers
These items are assessed at their current market value, not their original purchase price. Market value means what you’d reasonably expect to sell the item for today, not what you paid for it years ago.
👉 Example: If you bought a new car for $40,000 five years ago, but today it’s worth $15,000, Centrelink will count it as a $15,000 asset.
Why It Matters
Your total assets — including vehicles — are compared against the current Age Pension assets test thresholds. If the value of your assessable assets is above the limit, your Age Pension may be reduced or you may not qualify at all.
For the 2025–26 financial year, the key thresholds are:
Homeowners: Full pension if assets are below $321,500 (single) or $480,500 (couple).
Non-homeowners: Full pension if assets are below $543,750 (single) or $702,750 (couple).
Vehicles are counted toward these thresholds along with bank accounts, investments, and other property (excluding your family home).
Upgrading or Selling Your Car
Many retirees wonder whether buying a new car will impact their pension. The answer depends on where the money comes from:
Using existing savings: If you withdraw $30,000 from your bank account to buy a car, your assessable cash decreases, but your vehicle value increases. The overall impact on your total assets may be neutral.
Downsizing cars: Selling a car and putting the proceeds in the bank can sometimes reduce your pension if your savings balance increases.
It’s all about how your total assessable assets move around.
Special Considerations
Sentimental value vs market value: Centrelink only considers what someone would realistically pay for the car, not personal or emotional value.
Multiple vehicles: If you own more than one vehicle (for example, a car and a caravan), both are counted in your assessable assets.
Documentation: You don’t need to provide an official valuation unless Centrelink specifically requests it. You can self-estimate the current market value.
Practical Tips
Be realistic about values. Use online car sales sites to estimate your vehicle’s worth.
Think carefully before downsizing. Selling a car and banking the money could increase your assets and reduce your pension.
Review your situation regularly. Your asset values and Centrelink’s thresholds change over time.
Final Word
Yes, your car counts as an asset for the Age Pension — but often its value isn’t significant enough on its own to disqualify you. The bigger picture is how all of your assets fit together under Centrelink’s means tests.
If you’re considering buying, selling, or upgrading your vehicle, it’s worth looking at how it could affect your Age Pension entitlements. A little planning can go a long way toward maintaining both your mobility and your financial security.
