Services Australia has revealed how Centrelink payments work if you're living in a caravan that's traversing across the country. Tens of thousands of people were listed as caravan nomads at the 2021 census, and their home on four wheels is usually exempt from the assets test.

It's the same story for those who permanently live on a boat, or a relocatable home permanently attached to a caravan park. Services Australia community services officer Justin Bott said these people were assessed differently from those who own a home in the traditional sense.

"That's because you own the home, but not the land it's on or the mooring the boat is at," he said.

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"So for Services Australia, you are considered to be a homeowner, and the boat, caravan or mobile home is exempt from the assets test and won't affect your payment."

These people could also be eligible for Commonwealth Rent Assistance (CRA), which could go towards paying for ongoing fees like caravan site or mooring costs.

However, if you do own the land or water that the caravan or boat is on, up to two hectares around your dwelling can also still be exempt from the assets test.

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As a result, it won't affect your Pension payment, but you won't be eligible for CRA.

Bott said things can get tricky if the caravan or transportable home park lists or advertises itself as a retirement village or strictly for people over 55.

You need to complete asset and income tests to be approved for certain Centrelink payments.

While your personal home might not be deemed an asset in some cases, Services Australia will include the following as assessable assets:

• financial investments

• home contents, personal effects and vehicles

• real estate, annuities, income streams and superannuation pensions

• sole traders, partnerships, private trusts and private companies

How many Australians live in caravans or boats?

According to the 2021 Census, the vast majority of Australians live in a home fixed to the earth, with nearly 11 million private dwellings counted.

Standalone houses made up the greatest proportion of that at 70 per cent, with 16 per cent living in apartments, and 13 per cent living in townhouses.

That left 58,155 people who lived in a caravan, and 29,369 who lived in cabins or a houseboat.

Caravanning has exploded in popularity since then, especially after the pandemic forced many Aussies to check out their own backyard before travelling overseas.