How will Centrelink assess the sale proceeds?
25th July 2018
When someone has sold their residence and intends to purchase another one, the sale proceeds in relation to your Centrelink entitlements can be exempt from the assets test for up to 12 months. However, the total sale proceeds are still subject to deeming for the income test, and you would also still be assessed as a homeowner for the 12 months. The amount you intend to spend on your new home (purchase and/or construction) can be exempt under the assets test. Where this is not immediately known (you have not yet decided on a property to purchase) you can assume that all sale proceeds will be spent on the new residence.
If you still have not purchased a new home after 12 months the sale proceeds will become subject to the assets test. Should a situation arise where you are unable to purchase within the 12 months due to circumstances outside of your control, you may, in some instances request an extension from Centrelink of a further 12 months. Any such extension would be subject to Centrelink’s assessment of your personal circumstances.
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