That is a very good question, but not one with a simple answer.
Normally, only two hectares of land on the same title as your main home are exempt from the assets test. Sometimes all the land on the title may be exempt if your dad:
- Has lived on the property for at least the past 20 years in a row.
- and he passes the land use test.
To meet the and use test, you need to be using the land to make an income. It looks like he could potentially qualify under this rule. Making an income could mean that
- your Dad or a family member are running a farming business on the land or
- you are leasing the land to someone else for a commercial rate of return.
In assessing the land use test Centrelink will also consider a number of other factors such as:
- where the land is
- your family situation; for example, caring responsibilities
- your health
- if any family members have their own house on the land
- if the land supports you and your family or a younger generation of your family
- any commercial use or scope for commercial land use
- environmental issues, such as a drought
- if the land combines two or more blocks or titles.
Below is one of the examples Centrelink offers to illustrate the rules.
Jenny is 85 and has lived on her 100-hectare single-title farm for the past 40 years. She can’t run the farm on her own any more. Her son John and his family live in another house on the land. John earns his living from running the farm. The whole property is exempt from Jenny’s assets test.
It looks like the above example could potentially apply to your Dad’s situation.
If he qualifies for the Age Pension I cannot see an issue with him continuing to live on the farm.
If he qualifies under the asset test, he also needs to qualify under the income test. You did not specify how much income he received from the farm and whether he has any other investments, so I cannot establish with any certainty whether he qualifies under this test.
Because every case it considered individually on its eligibility, I cannot say with any certainty that your Dad will get the Age pension. I highly recommend you call the Older Australians line of Services Australia (previously Centrelink ) on 132300 and arrange an appointment with a FIS(Financial Information Services) officer at and discuss your particular situation with him or her. They are highly trained and knowledgeable people especially there for you to discuss your case. They can also advise you on the best possible strategy for transferring the farm to you while maximising your dad’s Age Pension entitlement where possible. I have found them to be very helpful, particularly in more complex situations and this is certainly one of them.