Selling home, Age Pension and Federal Budget 2022-23

If you sell your family home and buy a new one, it is very difficult to match the settlement dates. I always advice my clients to try to keep those days of sell and buy settlement as close as possible, but sometimes it is not that easy.
But why do I advise my client to keep those dates close to each other? Well, this is due to the impact your money has on your Age Pension, when funds from the sale of your family home sits in your bank account before you spend it again on your new home. 
Most people think that since this is money from the exempt asset, therefore it is also exempt in your bank account while awaiting the purchase of a new place. This is not the case.  If you sell your family home now, providing you advise Centrelink that you are planning to buy a new home, the total value of the sale of your original home will be exempt for a period of 12 months under the Assets Test. 
But, but what most people do not realise that funds in the bank account awaiting purchase of your new place is most certainly subject to the Income Test, hence it might reduce your Age Pension severely, until such time that money again is locked in your new home after the settlement date. 
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