S
lowly, some might
say stealthily,
the govern-
ment is put-
ting a greater
onus on Australia’s elderly- and their families – to
stump up a greater amount
fortheiraged-carefees.
On January 1 this year, the
government introduced
rules that made it harder
for people who are entering
residential aged care to collect
a pension. More than 100,000
Australians lost their pensions and
more than 200,000 had their pension
reduced as a result of the new rules. Now
more people will have to sell their family homes to
fund their aged-care requirements.
Before January 1, any person paying part of their
STORY JOHN RAWLING AND ROD HORINMY MONEYAGED CARE
refundable accommodation
deposit (RAD, formerly
known as the bond) by
way of a daily payment
had their family home
exempt from the assets
test, and any rental income
from the family home
was exempt from the
income test. The assets
test and income test deter-
mine the size of a person’s
pension so having exempt
assets and income entitles you
to a higher payment. For those
entering residential aged care after
the start of this year, the family home
became exempt from the assets test for two
years only, and thereafter fully assessable at its market
value. Also, any rental income from the family home
became immediately assessable under the income test.Finding an
aged-care
facility can
be daunting
and costly,
so it pays
to get good
advice