Does any one know how much would be deducted from my Single Age Pension if I rented out my house for $150. per week ?
An exact figure, not just so much in the dollar.

Cheers,
xina.

You may be happy to let a friend rent it for $150 a week but centrelink will go by market rents.

the next problem is if you are away from your home for more than 12 months they will then deam it as a asset

Hi Hawkie,
I ended up going in to Centrelink to get the info. I needed. I've warned enough people against renting their property while they're on the road, because of tenancy problems, but some-one made me an offer, and I was thinking twice. Changed my mind though. Not going to do it.

I did find out that if I had Charged $150. per week rent, I would have had $77.
deducted from my [Age] pension.

You are allowed to "Temporarily Vacate" your home,for 12 months. Then, I was told I could do the same thing again after a short period of time. [ The woman I spoke to said at least a week, but I'd double check on that.]

If you don't move back in at the end of 12 months, your home is then classed as an Asset.

Also, 1/3rd [One third] of the Rental you acquire, is deducted for up-keep on the property. Don't know if you get that back as a lump sum at the years' end, or if it comes off fortnightly.


Thought this might answer some questions for some-one else.

Cheers'xina.

Speak to centerlink, but rather than renting your house out entirely check to see what implications a boarder has on your pention.

If it were a friend you were renting to it would make little difference to the nature of the agreement but might get around the 12 month problem.

Doesn't make a difference even if you rent to a Family member Sean. You have to move back in for more than 1 day. I only decided against it, as I still think it's too risky for me to leave a Tenant in the house, while I'm off all over the country.

Money-wise, it would be great.

Cheers,
xina.

Centrelink's assessment of rental income CAN be to allow 1/3rd of the gross rental income for expenses, BUT if you have actual costs that are higher, you can claim a greater deduction. For example, if you charge $150 rent to your tenant, then have $20 pw INTEREST on your mortgage (not the whole repayment), around $30 pw for Council Rates, maybe another $10 pw for Water Rates and maybe another $16 for insurance and property management fees (all figures extremely hypothetical here, I may not be anywhere in the ball park!), then your total expenses would be $76 per week. Your assessable income would then have only increased by $74 per week, so the rate reduction would be less.
By the way, if you don't know the other expenses but have a mortgage, the 1/3rd rule would take effect, and then you would subtract the mortgage interest, so you would still have less income assessed - ie $150 income times 2/3rds = $100 less interest of $20 = $80 assessable income.
Your income will not reduce your Centrelink payment dollar for dollar unless you are on Special Benefit or Assets Hardship provisions, so you won't have a huge reduction in your payments if you work out what your actual expenses might be.
I hope this helps to clarify things a little.
Anita
PS: Yes, the expenses are deducted as you go through the year, ie fortnightly from the fortnightly rent along with your fortnightly Centrelink payments.

No Mortgage thank goodness.
Cheers,
xina.