SOA GRANNY FLATS
A living arrangement is considered a ‘granny flat’ interest where: the person ‘pays’ for a life interest or right to accommodation for life in a private residence that is to be the person’s principal home, and the residence is not owned by the client, their partner, or an entity (trust or company) that they control. Both life interests and life tenancy arrangements may meet the definition of a granny flat interest for Centrelink purposes. The granny flat interest rules do not have any tests regarding family relationship or the level of support provided to the resident. However, granny flat arrangements generally do involve family members, typically involving an arrangement between a parent and child. There are special rules for the assessment of granny flats which can allow granny flat residents to transfer assets or money over the allowable gifting limits without deprivation applying[1], in exchange for a right of occupancy for life in a residential property. The following definitions are fundamental to the assessment of granny flat arrangements for social security purposes: Entry Contribution (EC) – the value of the granny flat interest is the entry contribution for social security purposes. This amount determines home ownership status (i.e. homeowner or