Who will be income tested

As from 1 March 1998, all new aged care residents entering aged care on or after that date will be subject to income tested daily fees, except for:

• ex-prisoners of war requiring high levels of care equivalent to current nursing home care;
• people in respite care;
• people with a dependent child who is under 16;
• people with a student child between the aged of 16 and 25 who are in full time study;
• residents under 21, who receive a youth rate of pension or benefit and whose total income is less than the single adult rate of pension;
• people who opt out of income testing;
• residents in extra care facilities; and
• those on maximum rate income support.

Note:  Most residents in aged care prior to 1 March 1998 will only pay the basic resident contribution and no income tested fee.  However pre 1 October 1997 hostel residents will continue to pay their existing fees where they are subject to a variable fee arrangement.  Residents of an exempt facility paying higher than the basic fee will also continue to do so under existing arrangements.