I'm a Pensioner who is considering renting out my property.
I own the property but am currently not living there and am living in a rented house.
I don't own any other investment properties.
What I would like to know is how any rental income from my property would affect my pension and tax.
Also if I decide to sell my property, what CGT would occur if I don't currently live in the property and am renting at another location.
Thanks
Pension queries should be directed to Services Australia (Centrelink) as the ATO has no jurisdiction over these. However you would not only need to consider any income test but you would also need to consider whether this may be considered an asset under the assets test.
Regarding tax consequences, rental income is assessable and after any rental expenses the net rental income is taxable. Whether you pay tax depends on your other taxable income and any tax offsets (such as SAPTO) that you are entitled to.
With CGT you are able to move out of your home and rent the property for up to 6 years and continue to treat the property as CGT exempt under the main residence exemption. This rule is outlined below
Treating former home as main residence | Australian Taxation Office
Pension queries should be directed to Services Australia (Centrelink) as the ATO has no jurisdiction over these. However you would not only need to consider any income test but you would also need to consider whether this may be considered an asset under the assets test.
Regarding tax consequences, rental income is assessable and after any rental expenses the net rental income is taxable. Whether you pay tax depends on your other taxable income and any tax offsets (such as SAPTO) that you are entitled to.
With CGT you are able to move out of your home and rent the property for up to 6 years and continue to treat the property as CGT exempt under the main residence exemption. This rule is outlined below
Treating former home as main residence | Australian Taxation Office
15 Apr 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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