How does Centrelink assess property on multiple titles?

Font Size:

Warren is planning a tree change but wants to know the effect of buying a property on five titles.

•••

Q. Warren
I have been getting a part pension for two years and am now looking at moving from the city to Elmhurst in Victoria. The property I am looking to buy is about 13 acres and is on five titles zoned residential with an existing house. I am not going to participate in any business activities and the property has heavy coverage of trees over most of it. Will my existing part pension be affected by this move?

A. Normally, only two hectares of land on the same title as your main home are exempt from the assets test.

There are some exemptions that apply but one of the requirements is a 20-year connection to the land, which you will not have in this situation. That means that just over three hectares of the property at least will be assessed under the assets test.

The land being held on multiple titles is interesting. Three exceptions exist to the rule requiring land adjacent to the principal home to be held on one title document.

Under the three exceptions, land held on more than one title document can be treated as if it were held on the same title document as the person’s dwelling-house. The exceptions are:

  • where the dwelling-house is located on both blocks of land, or
  • where all or part of the blocks of land are protected by a law because of the land’s natural, historic or Indigenous heritage, or
  • where the alienation of one of the blocks would seriously undermine the function of the house as a dwelling.

If you enjoy our content, don’t keep it to yourself. Share our free eNews with your friends and encourage them to sign up.

Disclaimer: All content on YourLifeChoices website is of a general nature and has been prepared without taking into account your objectives, financial situation or needs. It has been prepared with due care but no guarantees are provided for the ongoing accuracy or relevance. Before making a decision based on this information, you should consider its appropriateness in regard to your own circumstances. You should seek professional advice. from a financial planner, lawyer or tax agent in relation to any aspects that affect your financial and legal circumstances.

Join YourLifeChoices today
and get this free eBook!

Join
By joining YourLifeChoices you consent that you have read and agree to our Terms & Conditions and Privacy Policy

RELATED LINKS

Here’s why older Australians need not be living in poverty

Government funds are going to the wrong people, writes economist Matt Grudnoff.

Government must step up for homeowners and renters

Home ownership is a fundamental plank in our retirement income system, but it's crumbling, write

What to do if you get a robo-debt letter

Centrelink general manager Hank Jogen explains what to do if you get a debt notice.

Written by Ben

2 Comments

Total Comments: 2
  1. 0
    0

    Quick look at property prices in Elmhurst – 1000 sq m house block for sale $60’000, so Warren might have some problems keeping his part pension. Depending how far out of town his property is but being residential it cannot be far. Looked at rural land in the same area and that is very cheap. Personally I got caught sitting on 2 HA of residential land, the council started charging me a lot of rates, saying the land could house 12 decent blocks and all the services were there so I was considered the owner of a land bank. Warren should talk to a solicitor, possibly in the local area. Nearest town I believe to be Ararat.

  2. 0
    0

    Wonder whether I was the only one caught out with residential land and high rates? Looked forward to hear from other people but this section is really quiet. Sorry Warren, not much information from us for sure.


FACEBOOK COMMENTS



SPONSORED LINKS

continue reading

Health

Mozzies biting? Here's how to choose a repellent - and how to use it

Mozzies biting? Here's how to choose a repellent (and how to use it for the best protection) Shutterstock Cameron Webb,...

Entertainment

Sir Bob Geldof on grief, fame and getting through it all

I've hardly started questioning Sir Bob Geldof before he is off on a long, sweary rant about everything he thinks...

Australia

Abandon Australia Day and choose the history we want to celebrate?

Australia Day is the anniversary of the arrival of the First Fleet in Australia. On 26 January 1788, 11 convict...

Community

Speaking up for the disappearing art of listening

Columnist Peter Leith is 91 and describes himself as "half-deaf and half-blind". But he sees and hears a lot and...

Beauty

Hyperpigmentation: How to tackle those tricky dark patches on your ski

There are plenty of great things about summer - sunshine, picnics and fruity cocktails immediately spring to mind - but...

Australia

Enthralling, dystopian, sublime: NGV Triennial has a huge 'wow' factor

Refik Anadol: Quantum memories 2020 (render) custom software, quantum computing, generative algorithm with artificial intelligence (AI), real time digital animation...

Australia

Where to eat, drink and play on Kangaroo Island

Australia's third largest island is an oasis of pristine wilderness, premium produce and hidden secrets ripe for discovery. Easily accessible...

COVID-19

Will you need a vaccination to visit Australian venues?

State premiers have suggested that once vaccinations begin in Australia, those without vaccinations may be banned from visiting some venues...

LOADING MORE ARTICLE...