Special Residence - Basic Assessment Rules

Last amended: 25 July 2006

    

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Provisions Relating to Special Residences and Special Residents

Part IIIB, Division 11, Subdivision C VEA

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Basic assessment rules for special residences

To determine the homeowner status for a person in a special residence, the entry contribution is compared to the extra allowable amount (EAA).    

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If a special resident's entry contribution...

Then they are assessed as a...

And...

exceeds the extra allowable amount

homeowner     

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is less than or equal to the extra allowable amount

non-homeowner     

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Extra allowable amount

    

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The EAA is the difference between the assets value limits for a property owner (low limit) and a non-property owner (high limit) that applies to the person.

Note: A person's entry contribution and EAA are assessed on an individual basis even if they are a member of a couple. Assets value limits for couples (partnered or illness separated) are generally quoted on rates charts as a combined figure and will require conversion to an individual rate before calculating EAA.

Impact of domestic circumstances on basic assessment rules

The person's domestic circumstances may impact the basic assessment rules. The following three tables cover possible scenarios in these main groupings:

Note: A special assets value limit applies to illness separated couples in special residences in certain circumstances.

Not a member of a couple

The following table provides assessment rules for possible scenarios of persons who are not a member of a couple and reside in a special residence.

If the person is not a member of a couple, resides in a special residence and the entry contribution is...

Then the person is a special resident and is assessed as...

more than the EAA    

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a homeowner.    

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less than or equal to the EAA    

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a non-homeowner.    

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Member of a couple

The following table provides assessment rules for possible scenarios of persons who are a member of a couple and reside in a special residence.

If the person is a member of a couple and resides in a special residence...

And the individual entry contribution is...

Then follow the assessment rules contained in...

whose partner resides in the same special residence    

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more than the EAA
  • homeowners, and
  • both special residents.

whose partner resides in the same special residence    

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less than or equal to the EAA
  • non-homeowners, and
  • both special residents.

whose partner resides in another special residence    

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more than the EAA
  • homeowners,
  • both special residents, and
  • the value of the two entry contributions are compared,
  • the lower value is assessable as an asset, and
  • the higher value is considered the principal home and disregarded.

whose partner resides in another special residence    

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less than or equal to the EAA
  • non-homeowners, and
  • both special residents.

whose partner    

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  • is not a special resident, and
  • is a property owner

any amount
  • homeowners,
  • one special resident, and
  • the values of the entry contribution and the partner's property are compared,
  • the lower value is assessable as an asset, and
  • the higher value is considered the couple's principal home and disregarded as an asset

whose partner    

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  • is not a special resident, and
  • is not a property owner

more than the EAA
  • homeowners, and
  • one is a special resident.

Note: Even though the partner is not a property owner, as a member or a couple they are both taken to be homeowners of the special residence.

whose partner    

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  • is not a special resident, and
  • is not a property owner

less than or equal to the EAA
  • non-homeowners, and
  • one is a special resident.
Member of an illness separated couple

The following table provides assessment rules for possible scenarios of persons who are a member of an illness separated couple and reside in a special residence.

If the person resides in a special residence and is a member of an illness separated couple...

And the entry contribution(s)...

Then the person is assessed as...

And their partner is assessed as...

whose partner is also a special resident    

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are both more than the EAA
  • a special resident, and
  • a homeowner
  • a special resident, and
  • a homeowner

whose partner is also a special resident    

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are both less than or equal to the EAA
  • a special resident, and
  • a non-homeowner
  • a special resident, and
  • a non-homeowner

whose partner is also a special resident    

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  • for the person is more than the EAA, and
  • for the partner is less than or equal to the EAA
  • a special resident, and
  • a homeowner

Note: A special assets value limit applies
  • a special resident, and
  • a non-homeowner

whose partner    

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  • is not a special resident, and
  • is a property owner

is more than the EAA
  • a special resident, and
  • a homeowner
  • a homeowner

whose partner    

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  • is not a special resident, and
  • is a property owner

is less than or equal to the EAA
  • a special resident, and
  • a non homeowner

Note: A special assets value limit applies
  • a homeowner

whose partner    

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  • is not a special resident, and
  • is not a property owner

is more than the EAA
  • a special resident, and
  • a homeowner

Note: A special assets value limit applies
  • a non-homeowner

whose partner    

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  • is not a special resident, and
  • is not a property owner

is less than or equal to EAA
  • a special resident, and
  • a non-homeowner
  • a non-homeowner


Source URL: https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/92-residential-situation/925-special-residence-assessment-rules/special-residence-basic-assessment-rules