Assets

There are assets and exempt assets:

an asset is a lump sum, property, personal effects, farm machinery, or certain investments; and
an exemptasset is not assessed under the assets test, and therefore won't affect your social security payment.

The main exempt asset is your principal home if you are living in it, and two hectares of land surrounding the home (curtilage). If you live on the farm you can deduct the value of the house and curtilage when calculating your assets for any social security entitlements.

It can be difficult to work out the value of the house and curtilage separately from the rest of the farm. The easiest method is to use the value of a similar house on a small acreage next to the nearest town.

Also, if you are of age pension age and qualify for Carer Payment or Age Pension or are the partner of such a person, you may also be eligible for consideration under the “extended land use test”. If successful, all land held on the same title as the principal home, or deemed to be on one title, is exempt from the assets test.

To qualify, you have to have a 20-year continuous attachment to the land and principal home. You also have to be making “effective use of the land”, meaning that if the land or part of it is productive, it is being used to generate an income.