Income and asset test changes for aged care residents
People who enter residential aged care after 1 January 2017 and rent out their former home will have their income and assets assessed under new rules.
This change affects aged care residents who enter aged care on or after 1 January 2017 who pay their fees periodically and who rent out their former home.
The net rental income from the resident’s former home will now be included in the Social Security income test.
The value of their former home will be included in the assets test after two years. It will remain exempt from this test if their partner still resides there.
Existing aged care residents will not be affected, unless they leave care for more than 28 days after 1 January 2017.
If a person’s pension is reduced due to these changes, this may reduce the amount of income assessed under the aged care means test. This could lead to a reduction in aged care fees and charges.
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