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Brisbane.Lawyer
Brisbane.Lawyer, Solicitor
Category: Australia Law
Satisfied Customers: 1601
Experience:  Lawyer of the Federal and High Courts of Australia; Lawyer of the Supreme Court of Qld
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I live with a woman in receipt of an age pension. I do not

Customer Question

I live with a woman in receipt of an age pension. I do not receive a pension. We informed the SS dept of our intention to sell our homes and purchase one together for economic reasons.Our friends are mostly of different groups. We share expenses. We seldom socialise together. I'm 81 - cancer and other ailments preclude sexuality. We each own the home and have willed to the other in the event of death. The lady is worried that she will lose her pension. What do you say?
Submitted: 1 year ago.
Category: Australia Law
Expert:  Brisbane.Lawyer replied 1 year ago.

Hi, my understanding is that the value of any real estate apart from your own principal home is considered an asset under the assets test.

To be exempt from the assets test, your principal home and adjacent land, up to 2 hectares, must be on a single title block and the land must not be used primarily for commercial purposes.

If you both sell your homes, and move to one together, she should still be able to retain her principal home exemption for the purpose of the assets test.

However, will doing this add cash to your bank accounts? I would need to understand what other assets she has... and you have.. in order to determine the result with regard to the assets test.

The asset thresholds are as follows:

http://www.humanservices.gov.au/customer/enablers/assets/#a15

There is also an income test... what income do you have? what income does she have (if any) in addition to her pension?

The income tests are are as follows:

http://www.humanservices.gov.au/customer/enablers/income-test-pensions

Kind regards,

James