1.1.S.25 Sale leaseback (agreement, residence)

Usage

These definitions apply to all payments subject to assets testing provisions.

Definition: sale leaseback agreement

A sale leaseback agreement is a commercial arrangement in which a person sells their principal home but continues to live in it for a contracted period, often for life.

Part payment is made when the agreement is signed and the balance is paid when the property is vacated. Sometimes the agreement also involves a stream of payments for a fixed number of years.

Act reference: SSAct section 11A(1) Principal home

Definition: sale leaseback residence

A home is a sale leaseback residence IF it is subject to a sale leaseback agreement.

Sale leaseback residences are classified as special residences and are assessed using the special residence provisions.

Act reference: SSAct section 12B Sale leaseback definitions,

Policy reference: SS Guide 4.6.4.40 Assessing Sale Leaseback Residences

Last reviewed: 1 July 2016