For many Australians, the long lap is the reward at the end of a working life. It is also a big financial decision, because it combines a large purchase with a long stretch of spending that is hard to predict. A framework helps.
None of this is personal advice. Retirement income, super and the Age Pension are complex, so consider speaking with a licensed professional about your situation.
Step 1: Know what comes in
List every source of income you expect while you travel.
- Part-time or seasonal work
- Account-based pensions or super drawdowns
- Age Pension or other government payments, if eligible
- Rental income from a home you are leaving behind
Services Australia explains the Age Pension rules, including how assets and income are assessed. Rules can change, and some payments may have limits on time spent overseas, although domestic travel is generally unaffected. Check the current details directly.
Step 2: Cover the home you leave behind
Many travellers keep their home, which means rates, insurance, utilities, maintenance and perhaps a house sitter. Others rent it out or sell. Each option has costs and tax implications, so ask an accountant, and see the ATO for information on rental income.
Step 3: Price the road itself
Use a typical week to build a figure.
| Item | Example weekly allowance |
|---|---|
| Fuel | $300 |
| Camp fees | $200 |
| Food and drink | $250 |
| Phone, internet, subscriptions | $40 |
| Entertainment and tours | $100 |
| Total | $890 |
These numbers are made up. Replace them with your own and check them against a short trial trip before committing to a longer one.
Step 4: Plan for health and the unexpected
Healthcare on the road can be harder to access in remote areas. Consider private health cover, travel insurance for any overseas leg, and a plan for ongoing prescriptions. Also build a repair fund, since a breakdown, a blown tyre or a damaged awning can arrive at the worst moment.
Step 5: Decide how the van is paid for
There are three broad ways to fund a van:
- Savings. No interest, but it reduces the cash buffer and may affect other plans.
- A loan. Keeps savings available but adds repayments and interest.
- A mix. A larger deposit with a smaller loan.
If you borrow, think about how repayments fit into a retirement income that may not grow. Lenders look at serviceability, and their rules on age, income type and term vary. A shorter term lowers total interest but raises each repayment. Test the budget with the repayment included and ask whether you would still be comfortable if costs rose.
ASIC's MoneySmart has independent retirement and borrowing guides. If you want to see what options might exist for you, you can start a free, no-obligation enquiry. Finance is subject to lender criteria and approval.
Step 6: Plan the exit
Think ahead to when the lap ends. Will you sell the van, keep it for shorter trips, or upgrade? A van generally loses value with age, so your plan should work even if it sells for less than you hope. Having a sensible exit plan can reduce stress later.
Step 7: Review as you go
Set a calendar reminder every three months to compare actual spending with your plan. Adjust before small gaps become large ones. Many travellers find the first few months are the most expensive while they learn what they really need.
Takeaway
A year on the road is not just a van purchase; it is a budget with a start date. Work out income, costs and the unexpected first, then decide how to fund the van. Taking time to plan gives the trip the best chance of being relaxing rather than stressful.
