Centrelink Q&A: Is my caravan an asset under pension rules?

Older Australians love to travel, and we receive many inquiries about how caravans are classed as an asset under Age Pension rules. Hopefully, this inquiry answers a few questions for our many intrepid travellers and readers.

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Q. Ross

When we retire in a few years, my wife and I, who are currently renting, intend to use our superannuation to buy a decent 4WD and caravan to live in and see the country.  

If we live out of a caravan, will our caravan be regarded as being our primary residence and exempt from assets test? How about the car used to tow the caravan?  (If a car is classed as an asset, then maybe a large campervan would be a consideration?)

A. Ross, it sounds like you have a great retirement ahead, and you are not alone in wanting to spend it travelling.

Eligibility for the Australian Age Pension is underpinned by two ‘tests’ you must pass, the income test, which is how much you earn, and the assets test, which is how much you own.

Your primary residence is not considered an asset under the assets test, whether that be a house, a boat or, as in this instance, a caravan.

However, assets under the Age Pension rules include home contents including furniture, jewellery, as well as financial assets. As a couple, Ross and his wife are allowed to have $722,000 in assets and still be eligible for the Age Pension.

So under the above scenario, Ross’ caravan would not be considered an asset but his car would. If Ross bought a campervan, that would be exempt.

For homeowners, you can travel for 12 months before Centrelink will reclassify your home as an asset.

Another valid point for keen caravanners is you will not be eligible for Rent Assistance for site fees if you are travelling. You can only claim that payment for one address, so you can claim it if you are permanently living in a caravan park or are being charged rent to park your caravan at one address.

To find out more about Rent Assistance, visit here.

If you are travelling, it’s a good idea to link your Centrelink account to your myGov account so you can keep everything up to date while you are on the road.

Do you have any Age Pension or Centrelink inquiries? Please send them to [email protected]

Have you needed to contact Centrelink while travelling? Did you do it online or find an office? Why not share your experience in the comments section below?

Also read: Centrelink Q&A: Are funeral bonds counted as an asset?

Jan Fisher
Jan Fisherhttp://www.yourlifechoices.com.au/author/JanFisher
Accomplished journalist, feature writer and sub-editor with impressive knowledge of the retirement landscape, including retirement income, issues that affect Australians planning and living in retirement, and answering YLC members' Age Pension and Centrelink questions. She has also developed a passion for travel and lifestyle writing and is fast becoming a supermarket savings 'guru'.
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