Your home situation can impact your income and assets tests

Many of our participants have made it clear that they wish to remain living at home for as long as possible and value this independence highly. But what if something happens and you need to move into residential aged care in the future? Or you choose to sell your home and downsize? Or you decide to move in with family members for more support?

Allowing yourself to think through various alternatives and options means you can make informed decisions and remain in control of your life, even if you have no specific plans for making a change in the foreseeable future.

It is important to understand that any changes to your living arrangements may potentially impact your financial situation. This means Centrelink will review your assets and income and will inform you of any adjustments to your pension and entitlements. Centrelink advise that:

• If you sell your home, its value counts towards the Age Pension assets test
• If you sell and plan to buy another home, some proceeds may be exempt from the assets test for up to 12-24 months
• If you rent out the home, its value may count towards the Age Pension assets and income test
• If you keep the home without renting it out, it is exempt from the Age

Pension assets test for two years from the date that you moved, but this may have an impact on your income test

If your income changes, this may also impact whether, and how much you are required to contribute for your care and services under the Support at Home program.

You can seek advice from a financial advisor or speak to a Services Australia Financial Information Service (FIS) officer to help you determine your options for the future.