C05/2006 CLIK Policy Part 9/Chapter 2/Section 5 Entry contribution amounts for retirement villages where contracts are split

Issue

There has been an increasing trend for retirement villages to offer split entry contracts for potential residents so they can obtain rent assistance.  For example, a client may produce two separate contracts: one for the house for $110,000 and one for an adjoining garage for $50,000.

Policy

The policy on assessing an Entry Contribution has been clarified in response to this practice.

Please see current policy in the CLIK Policy Library at P9/C2/S5/Entry Contributions, where a new paragraph has been added at the end titled

Contract splitting of amount agreed to be paid.

This policy position has recently been agreed between this Department and the Department of Families, Community Services and Indigenous Affairs.

Contact

For any questions regarding this instruction, contact Georgina Dudzinski on 14895 from the Income Support Policy section in National Office.