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.

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: 12 August 2024

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