A lot of the answers to your question will depend on your circumstances. If you are too financial that you cannot get any centrelink benefits, then what you suggest is one good way.

If you intend on using centrelink or feel you can, then thats another ball game.

check the topic 'Centre link' some 7 or so pages back ( I do not know how to put a pointer to the page) - basically the issue is your home is exempt when calculating centrelink. If you sell it, then another set of rules come into play.

For some, having a home base is important when travelling - horses for courses

Hi Robert and welcome to the forum,

here's a few links to previous posts on this topic.  There's quite a range of responses so you may find some that are relevant to your circumstances,

regards,

Jim

http://www.activeboard.com/forum.spark?aBID=51933&p=3&topicID=33234996

http://www.activeboard.com/forum.spark?aBID=51933&p=3&topicID=33580876

http://www.activeboard.com/forum.spark?aBID=51933&p=3&topicID=33338912

http://www.activeboard.com/forum.spark?aBID=51933&p=3&topicID=33300239

Selling the family home is a big decision and we agonised over it for months.
This is some info that I have received from C/Link.
If you decide to sell the house and live in a Van then the van is considered your principal residence and therefore is exemp from any assett test.
Any balance of payment that you may have is however taken into account and is "Deemed" by C/Link as an income and would be deemed as earning 3%.
This amount will be assessed as "income"  and this may affect your pension (if you are on a C/Link benefit).
If you are on a C/Link benefit you will qualify for "Rent assistance" - maximum payment of $105.40 / fortnight - qualifying criteria will apply.
To apply for rent assistance you will need to lodge a form (fortnightly) with froof of you payment of rent - Caravan park fees qualify as legitimate rent payment.
Each time you change parks ask the office to complete the form - then lodge the form on a fortnightly basis with C/link or an agency where you are at the time.
C/link will forward you a form and it's a good idea to copy this form and have several copies on hand.
If you decide to sell the family home and are on a C/link benefit - you will have to notify C/Link of you change of circumstances and provide them with (home sale) settlement details and bank statements and evidence of other incomes if applicable (e.g. Superannuation payments )etc.
Go and see someone from C/Link as I found them to be extremely helpful and only too willing to offer advice.
Follow this link for info on Rent assistance.  
http://agencysearch.australia.gov.au/search/search.cgi?query=rent+assistance&collection=agencies&form=simple&profile=centrelink

A sincere thankyou to all those who responded to my initial queries.
Hope this helps
Cheers Doug