Being a home owner when it comes to assessing your pension isn’t as straight forward as you may think. If you live in a retirement village, are you a home owner? Of course you know if you own a home (or mortgage) or not, however in a retirement village, this arrangement can actually be seen as a lease or a licence arrangement, which is where the lines get blurry.
Why is it important?
Knowing if you are classed as a home owner or not can drastically affect your pension entitlements. This can also impact potential rental assistance.
How is this worked out?
This is dependant on the amount you pay. Retirement villages set their own fees and rules. Before you move in, you normally pay an entry fee or contribution, which could be the full market value of the unit. Centrelink look at this fee to determine your status as a home owner. As non home owners have a higher assets test limit than home owners, the difference between the two is called the extra allowable amount.
So what is the amount?
Currently, the extra allowable amount is $224,500. So if you paid more than that, you are classed as a home owner. If you paid less than that, you are classed as a non home owner and may be eligible for rental assistance.
Need more help?
The aged care process is complicated. At Aged Care Specialists Vic, we provide services to people about to enter aged care, in aged care or planning for retirement. We understand pensions, fees and Centrelink as we deal with it day in, day out. Contact us here for more information.
Comments 10
I paid entry fee of 149,000 back in 2014. Why am I considered a home owner in 2025 and NOT entitled to rent assistance. The maintenance fees have increased by approximately $150 per 4 weekly [not monthly] payments.
Thanks for your question Helen. The Extra Allowable Amount in 2014 was $142,500. If you paid more than $142,500 that for your unit (which it looks like you did) then you are considered a home owner so not eligible for rent assistance.
If my wife and I pay say $900K for a villa unit in a retirement village are we classed as homeowners?
Thank you for contacting us.
Currently when someone pays over $242,000 for a retirement village unit they are considered homeowners.
I am about to move in a retirement village and the entry fee is $410000.Am I eligible to receive rent assistance from the government for the monthly service fees?
As you are spending above the Extra Allowable amount you would be considered a home owner and are not eligible for rent assistance.
I have bought an apartment in a retirement village in Highett, Victoria. I paid $950,000.00. If I leave or die, there is a 30% DMF that comes back to either myself (if I leave), or my family (if I die). Am I considered a home owner for CENTRELINK purposes? I am looking at applying for Centrelink’s HOME EQUITY ACCESS SCHEME and don’t know if I would be eligible for this? Do I, in fact, own my apartment? Can you please advise me on this?
Good afternoon Lesley,
You are considered a home owner due to the price of your RV Unit.
You should be able to apply for the Home Equity Access Scheme.
We are moving into a retirement village after paying $820,000 for the leashold. We will be paying a maintenance amount which covers Rates, Water, Gardening and common ammenities. When applying for Contents only insurance should we be considered home owners? Insurance companies are assessing us as renters and as the units are joined by a common wall, they are being shown as terraces. if we get this wrong we may not be insured.
Thanks for your comment, Lyn. We have replied privately but will answer here in case it helps others. Unfortunately, I am not well versed on the particulars of general (home insurance) insurance.
I would suggest contacting an insurance broker and working through them. – Claudia