Background

Under the pre 1 October 1997 rules, pensioners who entered nursing homes and hostels were entitled to rent assistance (residential care allowance) to help cover the cost of their care and accommodation.  However, as pensioners paid 85% or 87.5% of their pension to the hostel or nursing home respectively, most of the benefit of the rent assistance was passed-on to that facility.

Source URL: https://clik.dva.gov.au/compensation-and-support-reference-library/departmental-instructions/1998/c121998-aged-care-reforms/impact-income-support-policy/rent-assistance-eligibility/background