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