Do you live in your caravan? Here’s how it affects your age pension
Do you dream of hitting the road in a caravan after retirement? Then there are some things you need to know.
The pension and the assets test
Centrelink’s assets test is one of the most important contributing factors for receiving the age pension. There are limits to how much your assets can be worth before it begins to affect the amount of pension you receive. Centrelink looks at the value of your assets if they were sold at market value.
What’s included in the assets test?
Superannuation investments, any business you own or are directly involved in, financial investments, life insurance policies, and physical items like cars, boats and household goods are included in the assets test. Any additional properties you own beyond your primary residence are also included.
Crucially, your primary residence is not included in the Asset Test – and this is where potential issues with your caravan can come in.
Does my caravan need to be my primary residence?
If you want to access the full age pension while living in a caravan, then it must be your primary place of residence. If you still live in your home and just travel in your caravan for extended periods, then the caravan itself will be considered an asset not a residence. One piece of good news is that you may be able to claim rent assistance if you permanently live in a caravan park and pay site fees.
What happens if I still own my home?
Many grey nomads keep their home and rent it out to earn income. The money you earn from this will be considered under the assets test, even though you are now living in your caravan. Alternatively, if you sold your home the money you received from the sale could also be considered a lump sum asset.
Do you live in a caravan?
Any advice contained in this communication is general advice only. None of the information provided is, or should be considered to be, personal financial advice.