The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

4.6.3.20 Determining Homeowners & Non-homeowners

Summary

This topic:

  • defines a homeowner and non-homeowner, and
  • explains how to determine the home ownership status of couples living apart.

Definition of a homeowner

A homeowner is an income support recipient who has, or whose partner (1.1.P.85) has:

  • a right or interest in the place they occupy, AND
  • the right or interest gives them reasonable security of tenure.

Examples: An income support recipient is a homeowner if they are living in:

  • a home owned or partly owned by themselves or their partner, OR
  • a home to which they have legal title, OR
  • a home which is owned by a company (1.1.C.220) AND the company gives the income support recipient reasonable security of tenure in the home,
  • a campervan, caravan, transportable home or boat owned or partly owned by themselves or their partner in which they have reasonable security of tenure, OR
  • a special residence AND meets the requirements for special residences.

An income support recipient who acquired a life interest (1.1.I.185) in their principal home from a deceased estate is a homeowner.

An income support recipient who has sold their principal home is still a homeowner IF:

  • the principal home was sold in the last 12 months, AND
  • they intend to use some or all of the proceeds to purchase, build, rebuild, repair or renovate a new principal home within 12 months from the date of sale, AND/OR
  • they have applied some or all of the proceeds to build, rebuild, repair or renovate a new principal home within 12 months from the date of sale.

An income support recipient who has sold their principal home and has been unable to purchase, build, rebuild, repair or renovate a new principal home between 12 and 24 months is still a homeowner IF:

  • they intend to use some or all of the proceeds to purchase, build, repair or renovate a new principal home, AND/OR
  • they have applied some or all of the proceeds to build, rebuild, repair or renovate a new principal home, AND
  • they meet the criteria to gain an extended exemption to up to 24 months.

Where an income support recipient who has sale proceeds exempt, and/or the value of the residence, land or structure exempt, is a member of a couple, both that person and their partner are regarded as homeowners.

Act reference: SSAct section 11(4) Homeowner, section 11(4)(c) A person (whether a member of a couple or not) is a homeowner while…, section 11A(1) Principal home, section 11A(10) Reasonable security of tenure, section 12C(2) Special residence and residents definitions, section 13(1)-'ineligible homeowner'

Policy reference: SS Guide 4.6.3 Assessing the principal home, 4.6.4 Assessing special residences & aged accommodation, 4.6.3.80 Exempting the principal home - sale proceeds (for homes sold between 01/07/2007 & 31/12/2022)

Definition of a non-homeowner

An income support recipient is a non-homeowner if they CANNOT be defined as a homeowner or ineligible homeowner. Income support recipients who are non-homeowners can have a HIGHER value of assets (1.1.A.290) before their payment is reduced or cancelled.

Example: An income support recipient is a non-homeowner if they:

  • sold their principal home in the last 12 months and did NOT intend to use the proceeds to purchase, build, repair or renovate a new home in the next 12 months, OR
  • sold their principal home, did NOT use the sale proceeds to purchase, build, repair or renovate a new home within 12 months and did NOT meet the criteria to gain an extended principal home sale proceeds assets test exemption, OR
  • receive free accommodation in a private home, whether or not they have contributed to the cost of that accommodation, OR
  • live in a campervan, caravan, transportable home or boat they or their partner do not own AND do not have reasonable security of tenure, OR
  • do not have legal title in the home in which they live AND do not have reasonable security of tenure,
  • pay rent for lodgings or accommodation, EXCEPT during the first 12 months of temporary absence or in the first 2 years of entering a care situation (1.1.C.25).

Policy reference: SS Guide 4.6.3.70 Exempting the principal home - care situations

Couples living apart

The home ownership status of members of couples (1.1.M.120) IS affected if they are separated by illness or estranged. If a couple are living apart due to illness, special provisions for care situations MAY apply.

The following table explains the home ownership status for couples living apart IF one partner is NOT living in the principal home AND special care provisions do NOT apply.

If the couple… And the income support recipient is… Then…
are NOT estranged, - the home ownership status of either person is unaffected.
ARE estranged, living in a home they own OR partly own, the income support recipient is a single homeowner.
ARE permanently estranged, NOT living in a home they own OR partly own, the income support recipient is a single non-homeowner.
ARE temporarily estranged, NOT living in a home they own OR partly own, the income support recipient is a homeowner.

Act reference: SSAct section 4(7) Illness separated couple, section 4(9A) Temporarily separated couple

Policy reference: SS Guide 4.6.3.70 Exempting the principal home - care situations, 4.1.9 Deprivation disregarded

Last reviewed: