Determining homeowners and non-homeowners 108-04070010

This includes where the customer, or their partner, does not own the home outright, but has a mortgage with a bank or finance provided by the vendor. As the customer has an interest or right in the home that provides them with security of tenure, they are considered to own the home in which they live.

Note: to determine if a customer living in a caravan, boat or park home is considered a homeowner, see Assessing caravans, boats and park homes

• Yes, go to Step 6
• No, go to Step 2

Has the customer, or their partner, sold their principal family home and do they intend to purchase another within 12 months?

• Yes, go to Step 3
• No, go to Step 4

The exemption of the sale proceeds is for an initial 12 months and may, in certain circumstances, be extended up to a maximum of 24 months from the time of sale if the customer has:

• made reasonable attempts to obtain a new principal home within six months, and
• experienced delays beyond their control in obtaining a new principal home

See Sale of principal home.

Procedure ends here.

Is the home in which the customer lives owned by a trust or company in which the customer has an interest? That is, is the customer a trustee or beneficiary of the trust, or a shareholder of the company or have an interest in a self-managed superannuation fund? Or, is there some other arrangement like a life interest or granny flat right in place?

• Yes, go to Step 5
• No, see Step 3 in Table 2

There may be a formal written agreement between the customer and the trust or company. Where there is no written agreement, consider the relationship between the customer and the entity and look at the extent to which the customer can influence their right to continue living in the home. See Real estate owned by a private trust or company for help when assessing a home owned by a trust or company.

For help with life interest, see Assessing a life interest in a home.

If unsure if their tenure is secure, refer to a Complex Assessment Officer (CAO).

Does the interest give the customer reasonable security of tenure?

• Yes, go to Step 6
• No, see Step 3 in Table 2

• If property is on more than one title and/or is larger than two hectares, part of the property may be assessed as a real estate asset, see Step 1 Table 2
• If the customer has a dual occupancy residential development built on their land, go to Step 7
• If the customer's home includes a self-contained living area, go to Step 8
• If the customer has a business being operated from their home, go to Step 9
• For all other circumstances, including where the home is owned by a self-managed superannuation fund (SMSF), see Step 2 in Table 2

Whether a dual occupancy home built on a customer's land, is part of their principal home, is determined by who paid the construction costs.

• The customer (or their partner) did not pay construction costs for dual occupancy, see Step 2 in Table 2
• Customer (or their partner) paid construction costs for dual occupancy, go to Step 8

If the customer has a self-contained living area included in their home or a dual occupancy on their property paid for by the customer (or their partner), assess as follows:

• Vacant, it is part of the customer's principal home. See Step 2 in Table 2
• Let to a near relative, it is part of the customer's principal home. See Step 2 in Table 2
• Let to a person other than a near relative, not part of the customer's principal home. See Step 1 in Table 2

Where a customer is operating a business from their principal home:

• If areas of the home are used only for business, see Step 1 in Table 2
• If no distinct areas of the property are used for the business, see Step 2 in Table 2

From 1 January 2007, all new claimants (regardless of payment type) will be assessed under the rule that the house and curtilage amount is limited to the land on the same title as the home even if the home block is less than 2 hectares in size.

Note: a title document may have more than one parcel of land included. More information on title documents can be found in Assessing and coding real estate details.

There will be 2 curtilage exemption categories used to determine a customer's allowable house and curtilage concession: A 'private land use test' and an 'extended land use test' for qualifying Age Pension and Carer Payment recipients over Age Pension age.

A saving provision will grandfather concessions for real estate for two groups of existing customers on payments continuously from prior to 1 January 2007, where the home title is less than 2 hectares in size.

• The first are customers whose home property is made up of more than one title but they have been assessed as if it was one title and given a 2 hectare exemption
• The second group of saved cases will be where the customer has been assessed using the single title rule before 1 January 2007 and thus have less than two hectares allowed as curtilage. Customers in this group can contact Centrelink at any time in the future and ask to have the 'old' 2 hectare exemption applied to them even though the land is on more than one title. The grandfathering provision can apply if they would have received an increase in payment if the one title rule had not been applied. This is because the previous policy of applying the single title rule was not supported by legislation and was removed before the implementation of the new rules from 1 January 2007

The savings provisions will cease to have effect when the customer's payment is cancelled for any reason, or if they leave the property after 1 January 2007. For more information, see Assessing house and curtilage.

The surrounding adjacent land is assessed using normal principal home assessment provisions for the income support recipient. Under dual occupancy residential developments, the title to the land is not altered. Advise the customer if part of their home property will be assessed as an asset.

The net market value of the customer's real estate must be established using the following forms:

• Real Estate form (MOD R)
• Business Details form (MOD F) (where the customer's real estate is used for business purposes)

Issue a request for the document(s). See Requesting information (CLK).

For more details, see Assessment and sale of real estate and timeshare asset.

On return of Mod R, see Assessing and coding real estate details.

Go to Step 2

Additional action may be required for the following scenarios:

• Granny flat provisions
• Assessing a life interest in a home
• Retirement villages
• Assessment of entry contributions
• Assessing caravans, boats and park homes

Home owned by a self-managed superannuation fund (SMSF)

Assess customer as homeowner and advise customer that their principal home and curtilage is not an exempt asset. As the customer is a trustee of the SMSF, they are deemed to be a homeowner. However, the home is not an exempt asset, as it is not owned by the customer.

The home will be valued as an asset of the SMSF. The value of the customer's assets are assessed, not the underlying assets of the SMSF in which they have an indirect interest. The customer's assessable asset is their interest in their superannuation fund. For help with the assessment of a SMSF in the accumulation phase, see Assessing superannuation.

For all other circumstances

Assess customer as homeowner and advise customer that their principal home and curtilage is an exempt asset (except for any parts of the home determined not to be an exempt asset for example any land that is not allowed as curtilage). For more information, see Assessing house and curtilage.

Update home ownership on Accommodation (AC) screen.

Record details on a DOC.

Procedure ends here.

Advise customer that as they do not have a right or interest that gives them reasonable security of tenure in their residence, they are considered a non-homeowner and rent assistance may be payable.

Update home ownership on Accommodation (AC) screen.

See Rent Assistance (RA) to determine if customer is eligible for Rent Assistance.

Record details on a DOC.