Planning to caravan around Australia in retirement? What every senior needs to know about the Centrelink Age Pension before hitting the road
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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.
To receive the full pension:
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!
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.
Retiring Australians planning to caravan around the country need to be aware that their caravan will be included in the Centrelink assets test if their trip is less than one year, which could affect eligibility for Age Pension payments. Image source: Hailey Tong / Unsplash.
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
If the caravan trip lasts longer than a year, your main home back home becomes included in the assets test, and the caravan is excluded, potentially changing your Centrelink entitlements as homes usually hold higher value. Image source: Trevor McKinnon / Unsplash.
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)
- 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
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
- 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.
- Get a Valuation: Make sure you have up-to-date valuations for your caravan, car, and any other significant assets.
- Keep Centrelink Informed: Always notify Centrelink of any changes to your circumstances, including your travel plans and asset values.
- 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.
- Seek Advice: If you’re unsure, speak to a Services Australia officer or a financial adviser who understands the rules for retirees.
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!
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