Susan and her husband want to rent their house out for a few years but are concerned about the implications for the Age Pension.
My husband and I are both going to retire in January 2020. He will be 67 and I will be 66 – we will both be able to obtain the age pension. We own our own home and will have approximately $200,000 between us in superannuation.
We are thinking of moving interstate for a couple of years to assist with grandchildren. We don't want to sell our house, so we will rent it out and rent a property ourselves. As we will be renting our house out, will that then become a reportable asset – even though we will be renting ourselves?
A. Once the house you live in ceases to be the principal home that you live in, you will have to report it as an asset to Centrelink. Further to this, the money that you make from renting out this property will be assessed under the income test. You will be able to deduct expenses such as rates, taxes and maintenance from your rental income when you are working out the total income you receive from this investment.
Before considering a move, it would be worthwhile to discuss your situation with a Centrelink Financial Services officer. You can make an appointment by calling 13 23 00.
Are you eligible for an Age Pension? Do you know your rights? The PensionChecker™ tool has all the information you need.
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 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 Centrelink Financial Information Services officer, financial planner, lawyer or tax agent in relation to any aspects that affect your financial and legal circumstances.
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