Downsizing your home and the Age Pension

In the 2013 Federal Budget, the government announced a pilot program to assist senior Australians to downsize to a home more suitable to their needs without reducing their Age Pension entitlements. 

According to the Budget papers, “from 1 July 2014, senior Australian homeowners who have owned their family home for at least 25 years and who decide to downsize will have the option to invest surplus funds (up to $200,000) in an account. The funds invested in the account and earned interest, will be exempt from the Age Pension means test for up to 10 years.”

SuperGuide will provide more information when it becomes available.

In another measure affecting senior Australians, the government is providing an additional $10 million to extend the broadband network for seniors. The government is also providing $4.6 million to the Andrew Fisher Institute for Ageing to provide advice on demographic change, infrastructure and support for an ageing society.

© Copyright Trish Power 2009-2014

Copyright for this article belongs to Trish Power, and cannot be reproduced without express and specific consent.


IMPORTANT: SuperGuide does not provide financial advice. Comments provided by readers that may include information relating to tax, superannuation or other rules cannot be relied upon as advice. SuperGuide does not verify the information provided within comments from readers. Readers need to seek independent advice about their personal circumstances.

Comments

  1. mrs mcmel says:

    i would like to give my home house to my son as a gift and live in the granny flat beside this house. will there be any effect on my full pension?

  2. Do you have to have owned the same property for 25 years or been a continious home owner

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