Rod is keen to retire and run a small trailer parts business from home. However, he’s been told that a home business will mean his house is assessed as an asset – is this true?
Q. Rod,
I am 66 years old and run a small part-time trailer parts business from my shed at home, from which I make between $7000 to $10,000 per year.
I would like to retire from my main job and apply for the Age Pension and supplement it with my home-based business.
I have been told my house will be classed as an asset if I work from home – is this correct?
A. What you have been told isn’t strictly correct. If you use any part of your home, such as a garage or office, solely for the purpose of running a business, then Centrelink will count a portion of your home’s value as an asset, but not the whole value.
Unfortunately, as you would be classed as being self employed, you would not be eligible for the Work Bonus, which would enable you to earn $250 per fortnight before your Age Pension is affected.
I would suggest that you make an appointment to see a Centrelink Financial Information Services officer to discuss your situation or if you have an accountant with Centrelink experience, you could ask for advice.
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