4.3 What is total assessable income

Total assessable income for aged care purposes includes:

Residents who do not receive an income support pension are assessed under the social security ordinary/adjusted income test.

The following variations to the ordinary/adjusted income as per pension assessment apply to aged care means testing:

  • all periodic compensation payments are counted as ordinary income, i.e. Compensation recovery rules do not apply,

  • disability pension is exempt for persons who have qualifying service or their partners regardless of whether the person receives service pension,

  • MRCA permanent impairment and Special Rate Disability Pension payments are exempt for members, former members and their partners,

  • if the resident entered care on or after 1 January 2016 and pays (or is liable to pay) a daily accommodation contribution or a daily accommodation payment, income from rental of the principal home is assessable for aged care means testing (though it is exempt for pension purposes for residents who enter care before 1 January 2017). 

Source URL: https://clik.dva.gov.au/compensation-and-support-reference-library/aged-care-means-testing/4-aged-care-means-testing/43-what-total-assessable-income

Last amended

4.3.1 What is the total assessable income free area

Total assessable income for aged care purposes includes:

Residents who do not receive an income support pension are assessed under the social security ordinary/adjusted income test.

The following variations to the ordinary/adjusted income as per pension assessment apply to aged care means testing:

  • all periodic compensation payments are counted as ordinary income, i.e. Compensation recovery rules do not apply,

  • disability pension is exempt for persons who have qualifying service or their partners regardless of whether the person receives service pension,

  • MRCA permanent impairment and Special Rate Disability Pension payments are exempt for members, former members and their partners,

  • if the resident entered care on or after 1 January 2016 and pays (or is liable to pay) a daily accommodation contribution or a daily accommodation payment, income from rental of the principal home is assessable for aged care means testing (though it is exempt for pension purposes for residents who enter care before 1 January 2017). 

Source URL: https://clik.dva.gov.au/compensation-and-support-reference-library/aged-care-means-testing/4-aged-care-means-testing/43-what-total-assessable-income/431-what-total-assessable-income-free-area