Crowdfunding involves raising money from a large number of people through an internet platform, such as US-based sites Kickstarter and Indiegogo or Australian sites Pozible, Ozcrowd, or Readyfundgo. Some sites have focused on raising money for artistic or community-oriented projects, while others have been used for individuals with a story to tell to cover medical and other expenses. The phenomenon started with supporters pledging money either as a donation or in return for rewards such as products, access or public thank-yous.

Equity crowdfunding is the same concept but the people who pledge the money do so in return for equity in the company instead - they become investors and the crowdfunding becomes a share issue. The companies raising money are usually new ventures that are not yet ready to list on the stock exchange, so it's a form of angel investment.

Equity crowdfunding has been growing strongly overseas. It became legal in 2012 in the USA, and in 2014 in Britain and is also available in New Zealand and Italy. It is still relatively small and in 2015 some $US34 billion was raised this way.

Until recently capital raising for unlisted companies was only available in Australia under a rule that restricted the organisation to raising no more than $2 million from 20 people - or $5 million through a platform called ASSOB. The restriction on numbers meant it was used mostly for family, friends and acquaintances rather than strangers - not exactly a "crowd".

In March, the federal parliament passed its Corporations Amendment (Crowd-Sourced Funding) Act 2017. Due to take effect this September 29, the act sets the rules around crowd-sourced equity funding in Australia.

Under the act, small investors with less than $250,000 of income or less than $2.5 million in assets can invest up to $10,000 a company each year through an equity crowdfunding campaign. Larger investors have no restrictions.

The act restricts equity crowdfunding to unlisted public companies. However, last week the government introduced legislation to extend it to private companies, and this is expected to pass with the support of the opposition.

Companies such as Equitise and VentureCrowd are expected to apply to ASIC for a licence to offer deals under the new regime.

The new rules allow SMSFs to invest via crowd-sourced equity funding, always assuming it is permitted in the trust deed and approved by all trustees or directors of a corporate trustee.

However, it is important to realise that the investments are more speculative as many new businesses fail and companies using crowdfunding will offer less disclosure than other listed investments. Temporary concessions will allow exemptions from certain reporting, audit and corporate governance obligations for up to five years.

I have not seen any figures indicating how many investors, if any, have made a profit out of equity crowdfunding and I would caution that, if looking for a return on your investment, and not simply making a donation, this is not the place for your lifetime savings.

My wife and I are age pensioners, both in our 70s. Within the next 12 months we expect to move from Sydney to Brisbane where both our adult children and their families live. The plan is to sell our house and rent there for up to six months as we search for and purchase our new residence. It is my understanding that, under Centrelink rules, we can place the net sale proceeds in a bank or financial institution for up to 12 months as long as we don't touch it until we buy. The money is not counted under the assets test provided we demonstrate to Centrelink that we are actively looking for a suitable home. I am aware that the proceeds of the sale are deemed under the income test. Questions: 1. Can we place the nominated amount in more than one account to spread the risk, so to speak, and at different interest deposit rates? 2. Can we deposit for, say, three months, fixed and then "re-deposit' for another three months - until we need the funds? 3. Can we use the interest from the deposits to assist with our living expenses without affecting Centrelink rules? 4. Do we need to let Centrelink know what we are going to do at the time, or before the sale, or after the sale, via a letter from our solicitor who would be instructed as to where to deposit the sale funds? T.W.

You are largely correct but since you intend to sell in Sydney, it can be assumed that you will not spend the entire sale proceeds in Brisbane, in which case the excess will not be exempt. Only the value of principal home sale proceeds that are intended to be used to purchase, build, rebuild, repair or renovate a new principal home can be exempt under the assets test. As an aside, it would also not be exempt if you were to move into an investment property you already own in Brisbane, although I understand this is not your situation.

The total bank deposits for which you claim an exemption will be subject to deeming, so it doesn't matter how many term deposits or accounts you use. The interest earned does not affect the income test and can be spent as desired. The sale of the home and change of address are "changes in circumstance" and you are required to notify Centrelink within 14 days, while pointing out that you intend to purchase elsewhere.

Note that you are treated as a homeowner for the 12-month period of exemption, which begins from the date of sale, and ends on settlement of the new home, or if you change your mind. For example if, after six months, you decide you no longer want to purchase a new principal home but would rather move to Fiji, the exemption ceases on the day that you ceased your intention to buy a new home.

Note also that the exemption for the sale proceeds from the assets test can be extended a further 12 months if you meet certain criteria, notably that you have made reasonable attempts to purchase, build, rebuild, repair or renovate a new principal home, and experienced delays beyond your control.

"Reasonable attempts" include beginning in a reasonable time (don't go on a six-month cruise), and entering into a contract to buy or build, or accepting a quotation from a tradesman to do repairs or renovations. In this case, you must have documentation and I suggest that it would be politic to notify Centrelink of the circumstances if 12 months are almost up and you believe you meet the above criteria for an extension to time.

While it hopefully won't occur, if your health should suffer badly for some reason, or you undergo a natural disaster, this would also be regarded as a delay beyond your control.

If you have a question for George Cochrane, send it to Personal Investment, PO Box 3001, Tamarama, NSW, 2026. Help lines: Financial Ombudsman, 1300 780 808; pensions, 13 23 00.