Selling an asset and Centrelink
We purchased a vacant bush block in 2015 for $125,000 with the hope of eventually building a weekender on it. This was prior to applying for Aged Pension. Circumstances changed and I had to go on a Carer's Pension and changed over at 65 1/2 to Aged Pension. The block was paid for 100% from our Equity line on existing home and was classed as a asset by Centerlink, Now we are selling it for $165,000 and with ATO it will be a capital gain and taxed accordingly but Centerlink will class it as $165,000 income. Is this correct?
1 comments
1 comments
No, not income, the net amount you end up with is just added to your financial assets and then deemed @ 1% & 3% etc. If you pay down your line of credit with the sale proceeds, then it just disappears.