Principal residence in UK

[Aussiebird]

Hi people,  I can't find any info on here or government website/centrelink:  Is the money from the sale of our principal home in UK regarded as an asset in Australia when claiming rightful benefits upon our arrival in Australia and when seeking employment?  We would be buying a house as our main residence in Australia with the money as we have no savings.  If we are told the money is to be used as an income when seeking employment then it would run out very quickly.  

[Marisawright]

If you have cash in the bank then it is counted as an asset. The fact that you plan to by a house with it is irrelevant I’m afraid 

[Aussiebird]

1 hour ago, Marisawright said:

If you have cash in the bank then it is counted as an asset. The fact that you plan to by a house with it is irrelevant I’m afraid 

I have read somewhere if you have sold your principle home it's excluded?

[AliQ]

56 minutes ago, Aussiebird said:

I have read somewhere if you have sold your principle home it's excluded?

Marisawright is correct. We have the same situation and checked it out only recently.

[Aussiebird]

1 hour ago, AliQ said:

Marisawright is correct. We have the same situation and checked it out only recently.

So is it better to leave house sale funds in the UK until ready to buy in Australia? 

[AliQ]

2 hours ago, Aussiebird said:

So is it better to leave house sale funds in the UK until ready to buy in Australia? 

If you are claiming benefits, you have to declare ALL asset's, regardless of where they are held in the world.

Centrelink forms are very very extensive and detailed, they require details of all cash, property, cars, etc etc.

As for transferring your funds, that's up to you to decide when to do that, as you need to watch the exchange rate.

Good luck with your move.

[Tulip1]

3 hours ago, Aussiebird said:

So is it better to leave house sale funds in the UK until ready to buy in Australia? 

It would make no difference. You can’t just pretend its not yours because it’s in a UK bank account.  You will have to declare it regardless as to which account it happens to be sitting in.  

[Marisawright]

6 hours ago, Aussiebird said:

So is it better to leave house sale funds in the UK until ready to buy in Australia? 

Makes no difference which country the money is in, it's still an asset you have to declare.

You could take a risk that they wouldn't find out about it, but personally I wouldn't risk it.  Financial systems are very interconnected these days and there are big fines if you get found out. 

There's no way round it, I'm afraid.   We are in a similar situation.   We sold our home in Australia to try retiring in the UK.  It didn't work out, and by the time we got back to Australia, house prices had shot up (the little $600,000 townhouse we sold had gone up to $1 million).   We now can't afford a home we'd want to live in, so we're renting, and that money is in investments. It means we're not eligible for any benefits including the pension.

Edited April 18, 2020 by Marisawright

[Marisawright]

On 18/04/2020 at 23:29, Aussiebird said:

I have read somewhere if you have sold your principle home it's excluded?

@Aussiebird, your principle place of residence is excluded from the assets test, but that's only if you're actually living in it.  If it's sold, it's just money in the bank and not exempt.