News » Aged Care changes – January 1 2016

Aged Care changes – January 1 2016

Under current Aged Care rules residents are rewarded if they move into an Aged Care facility and rent the former home to assist paying their ongoing Care fees. The reward was an indefinite Centrelink/Veterans Affairs assessment as a homeowner and the value of the home was exempt from the assets test when determining pension eligibility and rates. In addition, the rental income received is not included in the income test which reduces the means-tested fee.

The good news is that existing Aged Care residents will not be affected because their current arrangements will be grandfathered.

For new residents who move into care after 31 December 2015 the following implications may apply;

  • Residents may find it more difficult to pay the ongoing care fees if they do not want to sell their former homes and have limited other financial resources.
  • The implications of paying the Refundable Accommodation deposit (RAD) or the Daily Accommodation Payment (DAP) will increase under the new rules due to the RAD being exempt from the pension assets test.
  • If the former home is rented the Age Pension entitlements will decrease and Aged Care fees will increase.

If you or a family member are currently in an Aged Care facility or are considering entering Aged Care and would like to discuss how these change will affect you or your family please call our office on 1300 472 232.


Kind Regards,


Perth Aged Care Financial Advisers

December 18, 2015