Income Support changes affecting new aged care residents

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From 1 January 2017, new aged care residents who rent out their former home will have the rental income assessed for their income support payments.

This change may affect your rate of income support payment.

If you enter care on or after 1 January 2017, we will include the rental income you earn from your former home as part of the income test.

After 2 years we will include the value of your former home in the assets test, unless it’s occupied by your partner. In this case it will still be exempt.

Aged care means testing arrangements aren’t changing. If your pension reduces due to these changes, this may reduce your total assessable income under the aged care means test. This can lead to aged care fees and charges reducing.

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Page last updated: 20 December 2016