Services Australia’s Justin Bott said caravanning Aussies need to be aware of how their payments might change depending on how long they’re away from home. (Source: Facebook/Getty)
Older Australians wanting to caravan around the country have been warned about the implications this journey can have on their Centrelink payments. Those wanting to get on the Age Pension or receive other payment types will have to undergo income and assets tests to find out if they’re eligible.
Services Australia community services officer Justin Bott said while caravanning across Australia can be fun, there are “things you need to consider” — like how long you intend to be away for. This will ultimately affect what is and isn’t included in the assets test.
Caravan and campervan registrations have soared by 27 per cent since 2019, according to Tourism Research Australia, with Aussies taking a staggering 15.2 million caravan and camping trips in 2023 alone.
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In that same year, those aged 55 and above accounted for 42 per cent of nights spent caravanning.
Back in 2018, that same age group only took roughly 3.4 million caravan and camping trips across the country.
But this isn’t only popular amongst older Aussies, dubbed Grey Nomads, but middle-aged and younger Aussies are also jumping on the travel trend.
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If you are planning to spend a few months on the road in a caravan, Centrelink will not include your home in its assets test.
Bott said Services Australia will continue to assess you as being a homeowner if your journey lasts less than one year.
However, your caravan will be included in that test during that time.
Depending on how much your assets are worth, the vehicle could push you into a higher bracket or off the books completely.
That could mean your Centrelink payments get reduced or taken away altogether.
Services Australia will also not allow you to claim rent assistance on the site fees when staying at caravan parks.
The situation flips if you intend to travel in a caravan for more than a year.
Services Australia will not include your caravan in the assets test, however, your principal place of residence back home will be included.
That could have a much bigger impact on your eligibility for certain Centrelink payments, as homes are typically worth far more than caravans.
But this will mean you can claim rent assistance for your site fees during your journey.
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It’s only when you return from the caravan trip that you can make your home exempt from the assets test again.
“If you lost your payments while travelling, you should check your eligibility to see if you can reapply now that you’ve returned,” Bott said.
Assets include things like cars, business assets, property (not including your primary residence), your superannuation balance, investments and private trusts and private companies.
These recently went up on July 1 to keep pace with inflation.
To access the full pension:
Single homeowners can now have assets of $321,500, which is up from $314,000
Couples who own a home can have $481,500, up from $470,000
Single non-homeowners can have assets of $579,500, up from $566,000
Couples who don’t own their home can have $739,500, up from $722,000
To access the part pension:
Single homeowners can have up to $704,500 in assets, which is up from $697,000
Couples who own a home can have up to $1,059,000, up from $1,047,500
Single non-homeowners can have assets of $579,500, up from $566,000
Couples who don’t own their home can have $739,500, up from $722,000.
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