The trial year

Way 3 of 5: up to 12 months. Up to a year living overseas, with the house rented out and a way back if it does not suit you.

A retired couple look out from the balcony of a rented flat over rooftops and palms, during a trial year overseas

Is this the right step for you?

Who it suits

  • You are fairly sure you want to live overseas, and want to be certain
  • Renting out the house would help pay for the year
  • You can be away from family for most of a year

Probably not yet if

  • You are not ready to have tenants in your home
  • You need certainty about tax before you go and have not spoken to a tax agent

What changes on the trial year

Your Age Pension
The 12 and 26-week changes apply. Rent from your home counts as income under the income test, which can lower your pension.
Your house
Rented out. It stays exempt from the assets test for the first 12 months you are away. After 12 months it counts as an asset. If you sell later, the ATO's 6-year rule can help, but only if you are an Australian resident when you sell.
Visa
A long-stay or retirement visa. Thailand's one-year Non-O-A is applied for from Australia and needs health insurance. Portugal's D7 needs passive income of at least €920 a month in 2026 (about A$1,540).
Health cover
International health insurance is usually the answer for a year. Some insurers have age limits for new members, from the mid 60s to the mid 70s depending on the country. Australian citizens can still use Medicare when back in Australia for up to 5 years after leaving.
Tax
This is where it gets personal. Renting out your home and setting up overseas can point away from being an Australian resident. Talk to a registered tax agent before you go.
Coming home
Home within 12 months and the house stays exempt from the assets test. From the day you return, your rate is no longer reduced for time away, and supplements come back if you still qualify.

General information, checked 19 October 2026 against Services Australia, the ATO and Smartraveller. Your situation may differ.

The steps, in order

  1. Talk to a registered tax agent about residency and rent
  2. Find a property manager and a long-stay visa
  3. Arrange international health insurance
  4. Tell Services Australia about the trip and the rent
  5. Set a date to decide: stay longer, or come home

The trial year, in pictures

A blank calendar with six of twelve months ticked off, for keeping track of a trial year living overseas
Halfway through the trial year.
A small Australian house with its key on a hook and a folder, for keeping your home during a trial year overseas
The house at home, kept for now.
A retired couple compare two lists at a table, weighing up how a trial year overseas is going
Comparing notes on what works.
A retired couple chat with neighbours over a low fence, making friends during a trial year living overseas
Meeting the neighbours.

Talk it through for your situation

On a free Zoom call we will help you work out which way suits you, where to go and who with.

No pressure and no card details. You decide what comes next.