Dreaming of hitching up the van and setting off to explore the wide, brown land in your golden years? You’re not alone!

The great Aussie caravan adventure is more popular than ever, with a record number of retirees and soon-to-be retirees—affectionately known as ‘Grey Nomads’—hitting the road to soak up the sights, sounds, and serenity of our beautiful country.



Caravan and campervan registrations have soared by 27% since 2019, and in 2023 alone, Aussies took a whopping 15.2 million caravan and camping trips.

Those aged 55 and over accounted for a massive 42% of all nights spent caravanning last year—a huge jump from just a few years ago. Back in 2018, that same age group only took about 3.4 million caravan and camping trips across the country.

It’s not just older Australians jumping on the travel trend either—middle-aged and younger Aussies are increasingly taking to the open road too. But for seniors relying on the Age Pension, the financial rules carry the most weight.

Services Australia’s Justin Bott has a simple message: ‘There are things you need to consider.’ And the biggest one is how long you plan to be away.

If your trip is less than 12 months:​

• Centrelink will still consider you a homeowner, so your principal residence (your house) remains exempt from the assets test.
• However, your caravan (and any other vehicles) will be counted as assets. If the value of your caravan pushes your total assets above the relevant threshold, your pension could be reduced or even cut off.
• You can’t claim rent assistance for caravan park site fees during this time.
  

If your trip is more than 12 months:​

• The tables turn! Your caravan is no longer counted as an asset, but your home back in suburbia is now included in the assets test.
• This can have a much bigger impact, as most homes are worth far more than caravans.
  
  
• The upside? You can now claim rent assistance for your caravan park site fees.
• When you return home, your house becomes exempt from the assets test again. As Bott explains: ‘If you lost your payments while travelling, you should check your eligibility to see if you can reapply now that you’ve returned.’

What Counts as an Asset?​

Centrelink’s assets test includes:

• Cars, caravans, boats, and other vehicles
• Business assets
• Property (excluding your primary residence, unless you’re away for more than a year)
• Superannuation (if you’re of Age Pension age)
• Investments, shares, and savings
• Private trusts and companies

Updated Asset Limits (as of July 1, 2024)​

To keep up with inflation, the asset limits for the Age Pension have recently increased.

To receive the full pension:

• Single homeowners: up to $321,500 in assets (up from $314,000)
• Couple homeowners: up to $481,500 (up from $470,000)
• Single non-homeowners: up to $579,500 (up from $566,000)
• Couple non-homeowners: up to $739,500 (up from $722,000)

To receive a part pension:

• Single homeowners: up to $704,500
• Couple homeowners: up to $1,059,000
• Single non-homeowners: up to $951,000
• Couple non-homeowners: up to $1,299,500
  

(Always check the latest figures on the Services Australia website, as these numbers are updated regularly.)

Common Pitfalls and Misconceptions​

• Rent Assistance: You can only claim rent assistance for caravan park fees if you’re considered a non-homeowner (i.e., you’re away for more than 12 months and your home is counted as an asset).
• Returning Home: If you lose your pension while travelling, you can reapply once you’re back and your home is again exempt from the assets test.
• Asset Value: Don’t forget to include the value of your caravan, car, and any other vehicles in your asset calculations before you leave.
  

Tips for Grey Nomads: How to Stay on Track​

1. Plan Your Trip (and Your Finances): Before you set off, work out how long you’ll be away and how this will affect your pension eligibility.
2. Get a Valuation: Make sure you have up-to-date valuations for your caravan, car, and any other significant assets.
3. Keep Centrelink Informed: Always notify Centrelink of any changes to your circumstances, including your travel plans and asset values.
4. Check Your Eligibility: If your payments stop while you’re away, check your eligibility as soon as you return home—you may be able to reapply.
5. Seek Advice: If you’re unsure, speak to a Services Australia officer or a financial adviser who understands the rules for retirees.
   

Caravanning around Australia is a fantastic way to enjoy your retirement, but it pays to be prepared. Understanding how your travel plans affect your Centrelink payments can help you avoid nasty surprises and make the most of your well-earned adventure.

Read more: Age Pension assets test: What counts, what doesn’t, and how it affects your retirement payments


Have you hit the road as a Grey Nomad, or are you planning to? Did you run into any Centrelink hiccups along the way? Share your stories, tips, and questions in the comments below—we’d love to hear from you! Safe travels, and happy caravanning!