In short

A timeshare is generally an assessable Age Pension asset, but Centrelink counts its actual resale value, which is usually very low since timeshares are notoriously hard to resell — so it rarely moves the pension much. The real cost is the ongoing annual maintenance and membership fees, which continue for a product used less over time. Exiting is difficult, and 'exit specialist' services charging large upfront fees are frequently scams.

Plenty of Australians now in or near retirement bought a timeshare somewhere along the way — a holiday apartment for a week each year, or a "vacation club" membership redeemable for points. It seemed like a good idea at the time. Decades on, it can feel like a quiet weight: a fee that arrives every year whether you use the place or not, for a holiday you take less and less often, wrapped in a contract you can't seem to escape. If that's you, there are three things worth getting straight — what a timeshare actually does to your Age Pension (less than most people fear), why the ongoing fees are the real problem, and how to avoid the predatory "exit" industry that preys on people trying to get out. The Age Pension, for the avoidance of doubt, is the means-tested government payment administered by Services Australia. This article is general information only, not personal advice.

What actually is a timeshare?

A timeshare gives you the right to use holiday accommodation — either a fixed period each year at a particular resort, or a points-based entitlement you redeem across a network of properties. The contracts are long, and can run for a very long time indeed: ASIC's MoneySmart notes that timeshare contracts can be over 60 years long (ASIC MoneySmart, https://moneysmart.gov.au/property-investment/timeshares). Crucially, they come with ongoing annual fees — an annual maintenance fee that arrives even if you don't use the property and may increase over time, plus a membership fee each year (ASIC MoneySmart, https://moneysmart.gov.au/property-investment/timeshares). In Australia these schemes are a regulated financial product, but being regulated doesn't make one a good deal or easy to leave.

What does it do to your Age Pension — probably less than you fear?

Here's the part that surprises people. A timeshare interest is generally an assessable asset for the Age Pension assets test, and Centrelink counts what you'd actually get for it. The rule Services Australia applies to your belongings is simple: the value of an asset is what you'd get if you sold it at market value, less any debt secured against it (Services Australia, https://www.servicesaustralia.gov.au/asset-types). It's the current resale value that matters, not what you paid for it on the original contract.

And that's the twist: timeshares are notoriously hard to resell. The genuine resale market is thin, and interests often change hands for a token amount. So while the timeshare is counted, the value assessed is usually small — often far less than owners expect, because it's tied to the poor resale reality rather than the price on the original contract. You'll generally need to be able to substantiate the figure you put on it, so it's worth confirming your own position with Services Australia. The practical upshot is that for most pensioners, the timeshare is not the thing that shifts their pension. Which brings us to what actually hurts. (Our companion piece on the Age Pension assets test explains how assessable assets reduce the payment more generally.)

What is the real problem — the fees that never stop?

The damage a timeshare does in retirement is almost always to your cash flow, not your assets test. Those annual levies keep landing — a fixed, recurring cost on a fixed income — for a product you're likely to use less as you get older and travel becomes harder. A special levy for a major refurbishment can arrive out of nowhere, and the maintenance fee can rise year after year. Over a long retirement, the fees you pour into a timeshare can quietly add up to far more than the holidays are worth — money that could instead have funded flexible, go-when-you-like travel with no strings attached. When you map out your retirement budget, the timeshare belongs on the list of ongoing commitments to look at hard.

What is the exit trap — and what warning is worth heeding?

If you decide the timeshare no longer earns its place, be warned: they are genuinely hard to get out of. Resale markets are so weak that interests sometimes sell for a nominal dollar, or owners end up effectively paying someone to take it off their hands. And until you actually exit, you must keep meeting the ongoing costs — if you simply stop paying, you may be in breach of contract and could face legal action (ASIC MoneySmart, https://moneysmart.gov.au/property-investment/timeshares).

That difficulty has spawned something to be very careful about: a "timeshare exit" industry that advertises heavily to desperate owners, charges large upfront fees promising to release you from your contract, and frequently delivers nothing. Treat any service that wants a big fee upfront to get you out of a timeshare with deep suspicion, and if you do decide to sell, use reputable brokers or resellers and watch for scam websites (ASIC MoneySmart, https://moneysmart.gov.au/property-investment/timeshares). The safer path costs nothing to start: dig out your actual contract and read the surrender and exit terms; contact the operator directly, because if you're in genuine financial hardship a provider will often assess your situation and may let you out of the scheme on evidence of that hardship; and get independent advice before you pay anyone a cent.

Is giving it away usually a Centrelink problem?

Some people worry that offloading a timeshare will trip the Centrelink gifting (deprivation) rules — the limits on giving assets away. Those limits let you give away up to $10,000 in a single financial year, and no more than $30,000 over any five financial years, before the excess is still counted as your asset for five years (Services Australia, https://www.servicesaustralia.gov.au/how-much-you-can-gift; these gifting free areas are not indexed and are current for FY2025-26). A gift only arises where you dispose of something for less than its market value — so because a timeshare's real, realisable value is usually so low, there's typically little or no value to "give away," and getting rid of one rarely creates a deprivation problem. The obstacle is almost never the gifting rules; it's that nobody wants to take it.

How do you stop it becoming your family's problem?

One last thing that's easy to miss. A long-running timeshare doesn't die with you — MoneySmart warns that the membership can outlast the member and transfer the financial liability to your estate, and potentially to someone who can't afford it (ASIC MoneySmart, https://moneysmart.gov.au/property-investment/timeshares). What was sold as a holiday perk can land on your children as a liability, not a gift. It's worth dealing with while you're able: understand whether the contract can be surrendered, raise it with the solicitor who prepares your will, and don't assume the family will simply be delighted to inherit the holiday club.

What do the worked examples show?

These show the two situations that matter most — the pensioner who fears for their payment, and the couple trying to get out. They are illustrative only, not personal advice, and the figures are illustrative.

Consider Margaret, 71, a single part-pensioner who paid around $25,000 years ago for a points-based holiday club and now pays roughly $900 a year in levies she barely uses. She's worried the timeshare is dragging down her pension. On these facts the worry is largely misplaced: Centrelink counts the interest at what she could actually sell it for today (Services Australia, https://www.servicesaustralia.gov.au/asset-types), and with a resale market so thin the realisable value may be close to nothing — so it likely moves her assets test very little, if at all. On these facts the rational focus for Margaret is not the pension but the cash flow: the recurring $900 levy on a fixed income, for a holiday she no longer takes, is the real cost, and that belongs squarely in her retirement budget review. And if she wanted to give the interest to a family member, the near-nil realisable value means there is little to trigger the $10,000-a-year gifting rules in the first place (Services Australia, https://www.servicesaustralia.gov.au/how-much-you-can-gift).

Now consider Robert and Helen, both 68 and full pensioners, who have decided their week-a-year resort timeshare has to go and are contacted by an "exit specialist" wanting $4,000 upfront to release them from the contract. On these facts the upfront fee is the warning sign: paying a large sum to a third party who promises to make the contract disappear is precisely the pattern regulators warn about, and it frequently delivers nothing. On these facts it is generally rational for Robert and Helen to keep their $4,000, read the surrender terms in their own contract, approach the operator directly about a hand-back or hardship exit, and take independent advice before paying anyone — while continuing to meet the levies until they are formally released, so they don't fall into breach (ASIC MoneySmart, https://moneysmart.gov.au/property-investment/timeshares).

Sources

Key takeaways

  • A timeshare is generally an assessable Age Pension asset, but Centrelink counts its actual resale value — which is usually very low, so it rarely moves the pension much.
  • The real cost of a timeshare in retirement is the ongoing annual maintenance and membership fees, which keep landing on a fixed income for a holiday used less over time.
  • Timeshares are genuinely hard to exit — resale markets are thin, and you must keep paying until formally released or risk being in breach of contract.
  • "Timeshare exit" services that charge large upfront fees to release you from a contract are frequently scams — try contacting the operator directly about a hardship exit first.
  • A timeshare's low realisable value means giving it away rarely triggers Centrelink's gifting (deprivation) rules, and a long-running timeshare can transfer as a liability to your estate if not dealt with.

Frequently asked questions

Does owning a timeshare affect my Age Pension?

Generally yes, but usually less than owners fear. A timeshare interest is an assessable asset, but Centrelink counts what you'd actually get for it at resale, not what you paid. Because timeshares are notoriously hard to resell, the assessed value is usually very small and rarely moves the pension significantly.

What is the real financial problem with a timeshare in retirement?

It's cash flow, not the assets test. Annual maintenance and membership fees keep landing on a fixed income for a holiday you're likely to use less as you age, and special levies for major refurbishments can arrive unexpectedly. Over a long retirement these fees can add up to far more than the holidays are worth.

Are timeshare exit companies legitimate?

Be very cautious. A "timeshare exit" industry advertises heavily to desperate owners, charges large upfront fees promising to release them from a contract, and frequently delivers nothing. A safer approach is to read your own contract's surrender terms, contact the operator directly about a hardship exit, and get independent advice before paying anyone.

Will giving away a timeshare trigger Centrelink's gifting rules?

Usually not. The gifting (deprivation) rules only apply where you dispose of something for less than its market value, and because a timeshare's real, realisable value is typically very low, there's usually little or nothing to "give away." The obstacle to getting rid of a timeshare is almost never the gifting rules — it's that nobody wants to take it.

A note on advice. This article is general information only and doesn't account for your personal circumstances. Everyone's situation is different — before acting, it's worth talking it through with a licensed adviser who knows your full picture.