Aged Care – alignment of aged care means testing arrangements

From 1 January 2016, the current exemption from the aged care means test of rental income from an aged care resident’s former home will be removed.

This measure started on 1 January 2016.

Description of the measure

From 1 January 2016, the current exemption from the aged care means test of rental income from an aged care resident’s former home (where that resident pays at least part of their accommodation costs by periodic payments) will be removed.

New entrants to residential aged care will have their net rental income from their former home assessed under the aged care means test. For more information about the aged care means test visit our website.

This change will only impact new entrants to residential aged care from 1 January 2016. Customers who enter aged care before this date will not be affected.

The removal of the rental income exemption will only affect aged care means testing. This change will not affect the means test for income support payments.

Questions and answers

Who will be affected by this measure

All new Residential Aged Care consumers from 1 January 2016. Customers who enter aged care before this date will not be affected.

Am I eligible for this measure

Aged care residents who are renting their former home and paying at least part of their aged care accommodation costs by periodic payment.

The date this measure will start and finish

This measure will start on 1 January 2016 and is ongoing.

Page last updated: 15 March 2016

This information was printed Monday 29 August 2016 from humanservices.gov.au/corporate/budget/budget-2015-16/budget-measures/older-australians/aged-care-alignment-aged-care-means-testing-arrangements It may not include all of the relevant information on this topic. Please consider any relevant site notices at humanservices.gov.au/siteinformation when using this material.