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Conversion Factor Table

Document
Last amended 
24 December 2014

Last amended: 22 March 2011

When to apply the conversion factor table

This table is only to be used for the purpose of establishing the reasonable amount of an entry contribution to a granny flat and in certain circumstances to establish the life interest of a sale leaseback contract. It is not to be used for any other purpose.    

 

Conversion table

The conversion factor, is based on the age of the pensioner at next birthday. In the case of members of a couple, the life expectancy of the younger partner is used.

 

AGE NEXT BIRTHDAY

CONVERSION FACTOR

AGE NEXT BIRTHDAY

CONVERSION FACTOR

51

33.94

76

12.78

52

33.02

77

12.07

53

32.09

78

11.37

54

31.18

79

10.70

55

30.27

80

10.04

56

29.37

81

9.41

57

28.47

82

8.80

58

27.57

83

8.21

59

26.69

84

7.65

60

25.80

85

7.11

61

24.92

86

6.60

62

24.05

87

6.13

63

23.18

88

5.68

64

22.33

89

5.26

65

21.48

90

4.87

66

20.64

91

4.52

67

19.80

92

4.19

68

18.98

93

3.89

69

18.16

94

3.63

70

17.36

95

3.40

71

16.56

96

3.19

72

15.77

97

3.01

73

15.01

98

2.86

74

14.25

99

2.72

75

13.50

100

2.60

 

Note: The Conversion Factor table is based on the Australian Life Tables 2010-2012, published by the Australian Government Actuary. The life expectancy figures included in the Conversion Factor table are an average of the current male and female life tables published by the AGA.


 

 

An entry contribution is the amount paid or agreed to be paid by a person for the right to live in a:

  • retirement village; or
  • granny flat.

If a person lives in a home subject to a sale leaseback agreement, the entry contribution is the balance of the amount still to be paid by a buyer, at the date of a sale leaseback agreement.

A granny flat interest exists if a person has established a right to accommodation for life, or a life interest in another person's private home.

Granny flat interests are established by the following methods:

  • transferring title of the pensioner's principal home to a relative and retaining a right of occupancy for life;
  • providing funds for the construction of a granny flat in which the pensioner has a right to reside for life on a relative's property;
  • providing some or all of the purchase price of a property which will usually be registered in a relative's name but in which the pensioner has a right to reside for life; or
  • the terms of an estate.

Refer to Section 5MA(2) of the VEA for the full definition.