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.

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.

Refer to Section 52M of the VEA for the full definition.

The principal home has the meaning given by subsection 5LA(1) of the VEA and subsection 5LA(2) of the VEA. The principal home of a person is generally the place in which they reside. In certain circumstances, however, the principal home of a person can be the place in which they formerly resided. The following property is regarded as part of the principal home.

• the residence itself (e.g. house, flat, caravan),
• permanent fixtures (e.g. stoves, built-in heaters, dish-washers, light fittings and affixed carpets),
• [glossary:curtilage:DEF/Curtilage] (i.e. two hectares or less of private land around the home where the private land use test has been satisfied, or all land held on the same title as the person's principal home where the extended land use test has been satisfied), or

•       any garage, shed, tennis court or swimming pool used primarily for private purposes provided it is on the same title as the principal home.

Life expectancy is the length of time a person is expected to live and has the same meaning as 'life expectancy factor' under section 27H of the Income Tax Assessment Act 1936.