Age pensioners can claim rent help while waiting for new home after selling
Age pensioners can sell a home and invest the proceeds. They can live on the interest and still claim rent assistance.
A special rule in the Social Security Act offers good deals to pensioners selling their family home. Money set aside for a new home is exempt from Centrelink's asset test and gets good treatment in the income test.
The arrangement lasts up to three years if your new home is delayed. You can invest the sale proceeds in a bank account at 5% or more and live on the interest while you search for your new place.
You can also claim rent assistance. For singles, up to $223.80 a fortnight.
For couples, $211 if you meet the minimum rent threshold. A couple selling for $1.5 million could make $6,250 monthly in bank interest alone.
Add full rent assistance and their age pension. The total is over $136,500 annually before tax.
You're still treated as a homeowner, so you miss the extra $267,000 asset allowance non-homeowners receive.
- Three years
- Maximum arrangement period
- 1.75 percent
- Deeming rate applied
- $223.80 per fortnight
- Single rent assistance
- $1.5 million
- Example sale proceeds
Why it mattersThis arrangement lets pensioners who downsize boost their annual income significantly. They can live comfortably between selling and resettling without using up their retirement savings.
AustraliaAny Australian age pensioner planning to sell their home and buy a smaller one should understand this rule, as it can transform their retirement income and flexibility.
✓ Claims checked against the source and corrected before publish. checked 5 h ago
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