Moving House While on the Age Pension: What Changes and What to Report

Whether you're downsizing to a smaller home, moving from a house to a rental, relocating to be closer to family, or selling a rural property, moving house while on the Age Pension involves more than just packing boxes. Your home exemption status, your assets test assessment, and even whether you're classified as a homeowner or non-homeowner can all change — and every one of those changes needs to be reported to Centrelink.

Why Your Home Status Matters So Much

Your principal home is exempt from the assets test — it's the single biggest exemption most pensioners have. But Centrelink also applies different assets test thresholds depending on whether you're classified as a homeowner or a non-homeowner:

Non-homeowners get higher thresholds because they're expected to need more assets to fund housing costs. When you move, your homeowner status can change — and that changes your pension.

Scenario 1: Selling and Buying a New Home

If you sell your current home and buy another one, Centrelink gives you a 12-month exemption period. During this time, the sale proceeds are exempt from the assets test, provided you intend to use them to buy, build, rebuild, or repair a new principal home.

During the 12-month window you should keep the sale proceeds in a separate, identifiable account so Centrelink can clearly see they're quarantined. If buying takes longer than expected, you can apply for an extension in certain circumstances (illness, building delays, etc.).

Scenario 2: Downsizing to a Cheaper Home

Downsizing is one of the most common moves for pensioners — and one where the pension impact catches people off guard. If your new home costs less than the one you sold, the leftover money becomes an assessable financial asset.

Scenario 3: Selling and Renting

If you sell your home and become a renter, you'll be reclassified as a non-homeowner. This gives you higher assets test thresholds, but the sale proceeds become fully assessable. You may also become eligible for Rent Assistance on top of your pension.

Whether this works out better or worse for your pension depends on the value of your current home versus the assets test thresholds. In some cases — particularly with very high-value homes — selling and renting can actually increase your total income (pension plus investment returns on the proceeds), even though you now have to pay rent.

Scenario 4: Moving Into a Granny Flat or Family Home

Moving in with family — whether into a granny flat, a converted garage, or a spare room — can trigger granny flat interest rules if you contribute money or transfer assets as part of the arrangement. The Centrelink treatment depends on how much you contribute relative to the extra allowable amount for your age.

This is a complex area with significant financial and legal implications. Before making any financial contribution to a family member's property, read our complete guide to granny flat arrangements.

Scenario 5: Temporary Absence From Your Home

If you leave your home temporarily — for travel, hospital stays, visiting family, or respite care — your home remains exempt from the assets test for up to 12 months, provided you intend to return.

If you're absent for longer than 12 months, Centrelink may reassess your home exemption. However, there are exceptions for extended hospital or aged care stays, and for situations where you can't return due to circumstances beyond your control.

Scenario 6: Moving From a Large Property (Acreage)

If you're currently on a large property where Centrelink assesses excess land beyond 2 hectares, moving to a standard suburban home removes that excess land from your assessable assets entirely. This can be a significant positive for your pension.

Conversely, if you move to an acreage property, the 5 acre rule will apply and any land beyond 2 hectares may become assessable.

What to Report and When

You must tell Centrelink about any change to your living arrangements within 14 days. This includes:

• Selling your home (even if you plan to buy another one)
• Buying a new home
• Moving from owning to renting (or vice versa)
• Moving in with family
• Any financial contribution to a family member's property
• Leaving your home for more than a few weeks
• Changes to your address
• Any change in the amount of rent you pay

Report through your myGov account, by calling 132 300, or at a service centre.

Moving House Checklist for Pensioners

Before you move, work through this checklist to minimise surprises:

1. Model the pension impact — Use our entitlements checker to estimate your pension under the new scenario
2. Consider downsizer contributions — If you're selling, you may be eligible for up to $300,000 per person into super
3. Check Rent Assistance eligibility — If you're moving to a rental, you may qualify for additional payments
4. Report the change within 14 days — Selling, buying, moving, or changing your living situation
5. Keep sale proceeds separate — If between homes, use a dedicated account for the 12-month exemption
6. Get advice on granny flat rules — If moving in with family and contributing financially
7. Update your address — Both with Centrelink and your super fund(s)

Last reviewed: February 2026