Does Centrelink consider me a homeowner when I enter a retirement village? 

February 2026

When assessing your eligibility for a Centrelink payment, your home is normally an exempt asset — provided it is on less than two hectares, is not used to generate income, and meets other standard criteria.

However, when entering a retirement village, you typically do not own the property title. Instead, you are granted a long‑term lease or licence to occupy. This special type of residency arrangement can affect how Centrelink assesses your situation.

The amount you pay to secure this lease or licence is known as an entry contribution.

If your entry contribution is above $258,000 (the “extra allowable amount”), Centrelink treats you as a homeowner, and the amount you paid is exempt from the assets test, just like a traditional home.

If your entry contribution is $258,000 or less, you are considered a non‑homeowner. In this case, the entry contribution is counted as an asset, but your income support payment is assessed under the more generous non‑homeowner assets test. You may also qualify for Rent Assistance.

In reality, very few retirement villages have entry contributions below $258,000. Therefore, in most cases, you are considered a homeowner and your entry contribution is exempt from Centrelink assessment.

One important nuance relates to Lifestyle Villages. These villages operate under slightly different legal arrangements. You are generally assessed as a homeowner, but you may still be eligible for Rent Assistance. Because eligibility can vary depending on the specific contract and village structure, it’s best to speak directly with the facility operator for clarification.