changing status of asset

Hi - we are on a part pension and one of our assets is our motorhome.

It has a valuation of $30,000 but we have not used it for over five years.

We have a buyer at $30,000 so will sell but need to replace a collapsed verandah and get the lounge painted.

We need to get the vehicle road worthied so i wonderered how to inform Centrelink. Do I declare that the asset was disposed of less the road worthy cost and the maintainance costs so add the remainder into cash at bank?

Would appreciate your advice.



This is one of the problems with updating information on line, there is no option to add an explanation of a situation which makes people wary of updating with the expectation they will be automatically disadvantageously penalised.  Perhaps Centrelink need to open a real person chat line, not the automatic robot one they have.

thanks for your reply - i presume that i will just edit out the motor home and increase cash at bank by the net amount gained

Peterseafood, be careful when you inform Centrelink as they regularly over value assets and that could have a very bad effect on your part pension. 

If possible go into a Centrelink office and explain there as they may have their own idea of the value of your assets and you could already be missing out of some extra money.  You need a printout of their valuation of assets as well.

I am far from an expert so be careful with what follows.  My understanding is that if Centrelink already knows of your motorhome and its valuation, turning that into the samecash equivalent would not change anything.  The asset value stays the same.  Furthermore, if you invest some or all of that cash into your usual place of residence (verandah, painting) that would serve to REDUCE your assets and should increase your part pension.  This because your primary residence is not counted for asset purposes and improvements to it, by definition 'don't count'.  In summary, it seems to me that your asset level would be reduced given the information in your question.

With regard to informing Centrelink, I have found that including an explanatory letter (PDF) with other relevant documentation via the online portal MAY help.  Since we have used that method, we have not had any 'muck-ups'!  We are about to inform them of a change to Superannuation investment 'switches' so we will be testing them again!

Good idea, I forgot about being able to do that, though it would be good if they had a comment box next to the the item being amended

One further point (going mad with posts!), we have found that altering motor car valuations online (down!) have been accepted without demur.

I have done similar. Sold a caravan, which Centrelink knew about, at a greatly reduced price. Used all the money on replacing a fence, putting up a carport and replacing kitchen appliances. All I did was show bank statement balance. That was 2 years ago. 

I recently requested an Income Statement. It arrived in the mail, but the back page listed joint assets from prior to my divorce. I spent a long time on the telephone going through everything I own, and the "corrections" were supposedly done whilst I was on the phone. The new Income Statement arrived...............listed Shares I don't have, Investment Income I don't have, and a ridiculous $ value on my real estate. My immediate reaction was to get on the phone again, but decided, based on my last attempt to have it corrected, another hour and half on the phone would be a waste of my time. These are the Public Servants who have not lost their jobs, have not lost their fact have had a pay rise..........and this is the level of service they dish out !!

thanks everybody - appreciate your advice


kind regards  peter




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