House and Curtilage

Last updated: 5 September 2012

Assessment of a house and curtilage

The following table provides reference points for the assessment rules of certain types of homes and attached property.    

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Curtilage

Land adjacent to a pensioner's principal home is referred to as curtilage. The amount of curtilage that is exempt from a pensioner's assessment depends on whether the private land use test or the extended land use test applies.

Structures on property not primarily used for private purposes

Structures not primarily used for private or domestic purposes in association with the dwelling house, whether they are situated on assessed or exempt curtilage, are assessable assets. The value of structures used for business purposes that are situated on exempt curtilage are assessable, regardless of whether the business is run directly by the pensioner or through a trust or company. This means that if a portion of the principal home is used for commercial purposes, then this portion of the home must be regarded as an assessable asset. The portion of the home used for private and domestic purposes remains exempt from assessment. For example, if a person runs a business from home that occupies 40% of the house, then the value of this 40% is regarded as an assessable asset and the remaining 60% is exempt from assessment.