JOHN: Will sharing accommodation with a friend affect my pension?
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A. I assume that the two friends are going to share rent, which can be great to cut costs and companionship, and is a living arrangement that is becoming very popular.
It sounds like a good plan, but you will need to notify Centrelink of any change of address and living arrangements.
Finance and retirement expert Noel Whittaker explains that if single-income support recipients share accommodation, the department will ask a series of questions about living arrangements to determine whether further assessment is required regarding the relationship.
Read: How does Centrelink assess caravans?
By law, a person is considered to be a member of a couple relationship if they are married, or in a registered relationship (different-sex or same-sex), or in a de facto relationship (different-sex or same-sex); and are not living separately on a permanent or indefinite basis.
In determining if a person is a member of a couple, the department considers the financial aspects of the relationship, the nature of the household, the social aspects of the relationship, any sexual relationship between the parties involved, and the nature of the people’s commitment to each other.
Read: Will my mother lose her Age Pension
If you are just friends, then that can still affect your entitlements. For example, the amount of rent assistance you receive may change depending on who you are sharing with and how you are contributing to costs.
Rent assistance is a non-taxable allowance to help meet the cost of private rented accommodation.
If you are sharing accommodation with anyone other than immediate family and the person you are sharing with is aged over 16, you may need to complete the relationships detail form from Services Australia. The person you live with will also need to complete and return the form.
Are you considering a ‘roommate’? Why not share your thoughts on communal living for older people in the comments section below?
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