Things you cannot avoid in retirementOctober 12, 2015
My husband has gone into Aged Care! Should I change my Will and Enduring Power of Attorney?February 1, 2016
By Brian Herd, Partner at CRH Law, our Lead Legal Professionals at Heather Hill Pathways.
Rental income from an aged care resident’s former home is currently not taken into account in means testing used to determine the resident’s income tested fee. The exemption applies if the resident pays at least part of their accommodation costs by daily accommodation payments (DAP). This exemption will end on 31 December 2015.
From 1 January 2016 the following rules will apply:
- New residents will have the net rental income from their former home included in the assessment for determining means-tested care fees;
- Existing residents who moved into residential aged care before 1 January 2016 will not be affected and will continue to be eligible for the exemption; and
- Existing residents who leave residential care for more than 28 days will, after 1 January 2016, see the net rental income taken into account when determining their fees on their return to residential care.
This change will only affect means testing for the purposes of aged care fees. It will not affect means testing for other payments such as income support.