Part-pension asset test avoids axe: report

An asset test that allows older Australians with million-dollar assets to collect a part-pension is likely to be spared the budget axe.

The Australian reports that despite signals the federal government plans to increase the pension age to 70 as early as 2029, its expenditure review committee believes the assets test should not be altered in next month's budget.

The newspaper says Prime Minister Tony Abbott believes any changes would breach an election commitment.

Earlier this month, Treasurer Joe Hockey said that with 80 per cent of people aged over 65 holding $1 million in assets collecting an age pension, the issue was something that needed to be discussed.

A senior Coalition source told The Australian the change would have unfairly penalised age pensioners who live in areas where property prices have increased.