Last updated: 8 November 2013
Definition of a homeowner
A person is a homeowner if they have a right or interest in the residence they are living in, which gives reasonable security of tenure. A person who is a member of a couple is considered to be a homeowner if they or their partner has a right or interest in one residence that is the principal home of one or both of them. Married couples living apart may be treated differently. Different rules apply to people who have left their principal home in order to go into a care situation or become an aged care resident.
Assessing the homeownership status of married couples and principal homes
9.2.2/Married couples living apart
In Care – Assessment Rules
Security of tenure
Security of tenure exists where a person has a right or interest in a property, unless the delegate is satisfied that the right or interest does not give rise to security of tenure. Accordingly, the types of security in some leases are taken to provide security of tenure. For example, a guarantee to a mobile home owner that a current lease arrangement is to be extended, will satisfy the requirement of reasonable security of tenure.
Mortgage over home
If a pensioner has a right or interest in a property, but is paying off a mortgage, they are still classed as a homeowner.
Sale of the former principal home
A person is also considered to be a homeowner where the person:
- has sold their principal home
- within the previous 24 months, or
- within the previous 36 months if granted an extension due to delays beyond their control, and
- intends to apply some or all of the sale proceeds in acquiring another residence that is to be the person's principal home.
Temporary absence from principal home
A person may continue to be regarded as a homeowner while temporarily absent from their principal home:
- if there is a clear intention to return to live in the home, within the first 12 months of absence, or
- if absent due to the home being lost or damaged and they intend to repair/rebuild the former home or acquire a new home
- for up to 12 months, or
- for up to 24 months if granted an extension due to delays beyond their control.
Assessment of principal home
A homeowner's principal home is a disregarded asset under the assets test. This includes the:
- dwelling (example, house, flat or unit),
- fixtures, and
- curtilage.
Dual occupancy
If a person has established a dual occupancy dwelling, being two separate dwellings on the same land title that cannot be subdivided, then the second dwelling may also be disregarded under the assets test. The delegate will need to be reasonably satisfied that the second dwelling forms part of the person's principal home.
Homeowner's assets limit
The lower assets value limit applies to homeowners.
Homeowners and rent assistance
Homeowners are not eligible to receive rent assistance, unless:
- the proceeds from the sale of the principal home have been disregarded,
- they are absent from the principal home while it is uninhabitable due to loss or damage,
- they are absent from the principal home due to entering care, or
- their principal home is a home such as a caravan, boat or other vehicle, or a structure, for which site fees are paid.
Household contents
Household contents are not exempt. They are assessable for assets test purposes. The amount to be held is the market value, not the replacement value.