Basic daily resident contribution for persons who lose pensioner status

There is a small group of aged care residents whose basic daily resident contribution is subject to special arrangements.  These residents are those who were pensioners, but became self-funded retiree upon cancellation of rent assistance on 9 October 1997.  These persons were receiving RA only due to high income or assets.

Persons in this group will be compensated for their actual rent assistance lost.

They will therefore pay a basic daily resident contribution between $21.10 per day indexed ($21.52 from 2 April 1998) and $26.40 per day indexed ($26.91 from 2 April 1998).

This provision only applies to persons in approved aged care as at 1 October 1997 who had rent assistance cancelled and involves no more than a few dozen persons nationally.  There will be no additions to this number.