The granny flat interest is an exception to social security law to ensure that when an older person transfers title of their property, proceeds of their property, or other assets to a family member (or similar person) in return for care and accommodation it does not affect their eligibility for the age pension.

For the granny flat interest to apply, the place the older person has moved into (or stays in) must be a private home and, in return for paying with the proceeds or assets, the person must have been promised the right to live there for the rest of their life. Find out more about granny flat interest