Thank you for responding.

I live in a location close to the beach which is a very popular holiday destination for 5 months of the year.

There are many houses around me which are 'holiday rentals'. A local real estate agent who specialises in holiday rentals tells me that if I add an en suite to the master bedroom and refurbish generally, spending around $50K all up, that the house could be marketed at a rate of $2.6K per week (let's say a nett of $2K for 80% of the time).  I would go and live elsewhere for say $300 per week for that period.

I am in discussions at the moment with my bank to increase my line of credit with them to fund the refurbishments.  The bank asked if my proposal would trigger a change in the status of my principal residence with CentreLink.

The CentreLink website says that "Assets that are assessed under the assets test include the value of any real estate, including holiday homes, you own (this does not include your principal home).

This property is the only property I own and it is my intention that, although I would be elsewhere renting for 5 months of the year, I would continue to live in the home for 7 months of the year into the foreseeable future.