28th Jul 2016
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Age Pension: is my self-contained unit an asset?
Woman looks at airbnb app on smartphone unsure how it will affect her pension

Renting out a room via Airbnb seemed like a good way for Lyn to earn extra income but does her set-up qualify part of her home as an assessable asset?

Q. Lyn

I have turned part of my home into self-contained Airbnb accommodation. As my superannuation earnings were negligible and I seemed to be paying the fund manager more than I was earning, I withdrew my super and used the funds to convert part of my home into a self-contained unit to earn income through Airbnb. Your article about whether your home or the relevant part of my home will be considered an assessable asset gave me pause for thought.  

A. If the part of your home is used only to derive an income via Airbnb, then you may well find that part of the value of your home is considered an asset.

If you use the area for other purposes and your guests also have access to other parts of your home, then you may only be assessed under the income test.

Of course, you may also be able to claim tax offsets and deductions which may prove financially beneficial.

You should contact Centrelink, or seek advice from an accountant to confirm your particular situation.

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    COMMENTS

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    Blossom
    1st Aug 2016
    11:54am
    Superannuation is counted as an asset. I don't know whether the whole of part of your unit would be counted as an asset.
    Not Senile Yet!
    1st Aug 2016
    4:34pm
    This is exactly where the Governments of Oz have it wrong!
    Renting or Sharing your home should be encouraged and rewarded not Punished......As the Retirees cannot get back into the Workforce....no jobs for them.....then their only means of creating extra income.......required due to inflation and Cuts to Pensions.....is being attacked & penalised as well!
    Whatever happened to Rewarding People for trying to be Self Sufficient?
    The Retiree has paid more tax than anyone else..that built Roads/Public Transport etc etc.
    Time to STOP with the Penalty Mentality!
    The Public are sick of it!!!
    Alexii
    2nd Aug 2016
    12:21pm
    That's our government! Continue to make it difficult for we "old's" to make our lives a bit more comfortable with a little bit more income. Much better if we curl up and die as soon as possible.


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