C45/1998 AMENDING DEPARTMENTAL INSTRUCTION RE: AGED CARE REFORMS

Purpose of instruction

The purpose of this instruction is to amend the system rules relating to special income and assets concessions for residents of nursing homes who paid an accommodation bond prior to 6 November 1997.

For a full explanation of the rules applying to this group, please refer to pages 16-23 of Departmental Instruction (DI) C13-98.

Changes

The amendments apply to the manual rate assessment procedures on page 23 of DI C13/98.  A copy of the relevant page is attached.

Impact

A maximum of less than 10 cases nationally may come into the group affected by the special concession rules.

Details of cases arising should be forwarded to Oona O'Beirne as the program cost of these cases is currently being funded via ex-gratia payment pending passage of the legislation.

Action

Please apply the amended manual rates recording procedures relating to the special income and assets concessions for nursing home residents who paid an accommodation bond set out at page 2 of this instruction.

Authorised by

R J HAY

BRANCH HEAD

INCOME SUPPORT

Procedures

The following procedure details how to implement the income and assets exemptions relating to the special accommodation bond concessions applicable to nursing home residents.

Step

Action

1

Update the person's pension assessment in accordance with their current income and asset details.

2

3

Determine the reduction to be applied to the person's income.  This will be the amount to be exempted under the assets test multiplied by the above threshold deeming rate.

4

Deduct the income and assets exemption amounts from the total income and assets.  For members of a couple, apply 50% of the deductions to each partner.

5

Access the PIPS PC ‘What if?' screen.

• Create a ‘Hypothetical' case making sure you select the correct pension type.  In partnered cases choose the ‘illness separated' option.

• Select the appropriate ‘Residential Situation' options.  If partnered cases both members of the couple could have different residential situations.

• On the income and assets screen record the new assessable figures in the ‘Personal Assets' fields.

• Select the effective date and calculate. Obtain a print of the assessment.

6

Access PIPS PC ‘Calculate Pension'.

• Enter the relevant effective date and go to the ‘Manual Rates' sub-screen.

• Select ‘Miscellaneous (manual assessment) Type'.

• Record the assessed rate of pensions, allowances and the prescribed rates from the ‘What If' print.

• Give a reason  for the manual rates assessment in the Text sub-screen.

• Return to ‘Calculate Pension'.  Process case as per standard procedures.

Exemption procedure

The procedure to follow to implement the income and assets tests exemptions using the manual rates screen is as follows:

1.Update the person's pension assessment in accordance with their current income and asset details.

2.Determine the amount to be exempted under the assets test.  This will be:

-the amount of accommodation bond refunded to the person; or

-the gross proceeds of sale of the person's former home, less any costs incurred in the course of the sale and less any debt secured by the home; or

-if both of the above apply, the greater of the two amounts.

3.Determine the reduction to be applied to the person's income.  This will be the amount to be exempted under the assets test multiplied by the above threshold deeming rate.

4.Deduct the income and asset exemption amounts for the person's total income and assets.  For couples, apply 50% of the deductions to each member.

5.Go to the Manual Rates screen and select “Miscellaneous (manual assessment) Type”.  Record the income and asset balances. Give a reason for the manual rate assessment in Text.