The Centrelink Mistake Downsizers Make When They Sell the Family Home

Janet Mcneill Posted on 13 Aug 2026

If you are thinking about downsizing, there is one question many people do not consider until much later:

What happens to your Age Pension when you sell the family home?

For years, your principal home may have been excluded from the Centrelink assets test. But once you sell, the financial picture can change.

And this is where downsizers can get caught out.

It is not necessarily the sale itself that creates the problem. It is understanding:

what happens to the money from the sale
how much you intend to spend on your next home
what happens to any money left over
whether deeming may apply
and how your overall assets could affect your pension

There are also important rules around selling before buying, temporary exemptions and superannuation that many retirees are simply unaware of.

The key is to understand these issues before your home is listed, not after settlement.

Selling the family home can change more than your address. There is a Centrelink and Age Pension issue many downsizers overlook. Watch the video to understand what to consider before you sell.

Watch the video

In this video, I explain:

The Centrelink Mistake Downsizers Make When They Sell the Family Home

I break down the issue in plain English, including the part most downsizers overlook when calculating how much money they will have after the move.

Watch the full video here

Free Downsizing, Centrelink & Your Pension Guide

If you are planning to downsize, we have also created a free guide to help you understand the questions worth asking before you sell.

It covers Centrelink, your pension, selling before buying and other financial considerations that may affect your move.

Download your free copy here

Thinking About Downsizing? We'd Love to Help

Whether you're planning to move next month or five years from now, having the right information early makes the process much easier.

At McNeill Real Estate, we specialise in helping homeowners across the Mornington Peninsula understand their options without pressure.

If you'd like an obligation-free conversation about your property, your plans or simply where to start, we'd love to help.

Free Resources Available

✔ Complimentary property appraisal

✔ Downsizing advice tailored to your circumstances

✔ Local market updates

✔ Information about preparing your home for sale

✔ Practical guidance to help you move with confidence

Contact McNeill Real Estate today or browse more helpful resources on our website.

About the Authors

Janet McNeill and David Kershaw are licensed real estate professionals with McNeill Real Estate, based in Mornington on Victoria's beautiful Mornington Peninsula.

They specialise in helping homeowners navigate downsizing, retirement moves, lifestyle changes and residential property sales throughout Mornington, Mount Martha, Mount Eliza, Somerville, Moorooduc, Dromana, Rosebud, Hastings and surrounding suburbs.

Known for their honest advice, personalised service and step-by-step guidance, Janet and David are passionate about helping people move with confidence—whether they're buying, selling or simply exploring their options for the future.

Disclaimer: The contents of this blog do not constitute financial, taxation, Centrelink or legal advice, are not intended to be a substitute for legal advice and should not be relied upon as such. You should seek legal advice or other professional advice in relation to any particular matters you or your organisation may have.. David and Janet encourage homeowners to seek appropriately qualified advice before making financial decisions and works alongside their chosen advisers to help coordinate the property component of the move.