Valuation for Centrelink Asset Test
Centrelink Asset Test Valuation
If you are receiving a payment from Centrelink you are sometimes required to provide details and the value of your property or properties for asset test purposes. These asset test valuations for Centrelink are usually based on Current Market Value and can be submitted to Centrelink as expert evidence of your assets (property or properties) that could affect your Centrelink payment (such as pension payments).
The Centrelink Valuation Report is Crucial
The valuation report you provide to Centrelink (or the so-called Centrelink Valuation Report) serves as an important piece of evidence in the determination of your payments from Centrelink. Therefore, a robust and accurate valuation report evidencing the current market value of your property is crucial.
Your Home is NOT an Asset to Centrelink
Your home is not considered as an asset when Centrelink calculates your pension or payment. However, it affects the assessment of your pension or payment under the assets test. Those who own their home have a lower asset limit compared to those who do not.
Centrelink has the resources to make their own evaluation of your property. If and when required, Centrelink also has access to government property valuers to determine the value of your property. The value Centrelink uses is the current market value.
Do you know that you have an obligation to inform Centrelink when any improvements are made to your home that could increase its market value? In such cases, they may reassess the value of your property that could affect your payments.
What about Your Investment Property?
If you own an investment property, whether it is leased or vacant, it will come under the Centrelink asset test. But if you still owe the bank for the investment property and the loan is secured by this property, Centrelink will deduct this from the property's value, that is, they will only use the net value of your asset.
Disagree with the Centrelink Valuation of Your Property?
If you do not agree with Centrelink's estimate of your property's value, you could appoint ValuConsult to provide you with a current market valuation report to contest their estimated value as part of the dispute resolution process.
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