Terms & Terminology

AGED CARE ASSESSMENT

An assessment is an evaluation by a member of the Aged Care Assessment Team (ACAT) who is a health care professional in the area of senior care. They will visit the prospective resident and ask them some questions about their life and lifestyle to find the best possible care options. They may have anyone present with them during the assessment, such as a carer or family member. They can instruct their doctor to provide their medical history to the ACAT representative. These assessments are free.

ASSET ASSESSMENT

Residents will need to submit a Request for Asset Assessment to the Department of Social Services who will subsequently notify the resident/representative and the aged care provider of the maximum daily fees payable based on their Asset Assessment.

We can help you complete the required paperwork.

RENTING OUT YOUR (FORMER) PRINCIPAL RESIDENCE

The home will not be counted as an asset for determining pension entitlements until two years from the date of entry.

If you have elected to pay some or all of the Accommodation Cost by DAP, the home remains an exempt asset for as long as you are liable to pay this periodic payment.

The rental income is not included in the calculation for determining Age Pension eligibility.

If rented within 2 years, the rental income and the home will be exempt forever.

The rental income is included as income towards the Means Tested Care Fee, if you entered care from 01 January 2016.

The principal residence is counted as an asset towards the Means Tested Care Fee, however its value is capped at $159,631.20.

We encourage you to seek our advice, to compare keeping versus selling the house, and the consequences of each strategy on your cashflow and networth.

NON SUPPORTED RESIDENTS

Residents with assessable assets valued at more than $159,631.20 will not be categorised as low means needing support. Residents with less may be fully or partially supported – see below.

SUPPORTED RESIDENTS PAYMENT CONTRIBUTIONS VARIABILITY

The amount of the Accommodation Contribution you must pay will vary from time to time depending on the Accommodation Supplement applicable to the Aged Care Facility; and your Means Tested Amount.

FULLY SUPPORTED RESIDENTS

Residents with assets below the Minimum Permissible Asset Amount will not be required to pay an Accommodation Contribution. The Basic Daily Care Fee will be payable by the resident. It is important to submit a Request for Asset Assessment to Centrelink and receive confirmation of status from Centrelink prior to admission.

PARTIALLY SUPPORTED RESIDENTS

For residents with assets valued between $46,500 to $159,631.20 there will be an Accommodation Contribution payable. The amount of the Accommodation Contribution will be determined by the Asset Assessment by Centrelink. The Basic Daily Care Fee will also be payable by the resident. A Means Tested Care Fee may also apply depending on their total assessable assets and income.

The information provided on our website is general in nature, and does not take into account your personal circumstances. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.

We encourage you to seek our advice to determine your supported/non supported status, discuss strategies that may affect your status and the benefits and drawbacks of being supported or non supported.