Transitional provisions for backdating claims
The backdating of income support claims is intended to assist aged care residents who, for reasons beyond their control, delay lodging a claim for pension during the transitional period. The pension must become payable because of one of the following accommodation bond exemptions:
- the value of the accommodation bond is no longer counted under the assets test;
- the value of the former home and the rental income from that home is not counted for pension purposes, for a resident making periodic bond payments.
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Family and Community Services and Veterans' Affairs Legislation Amendment (Further 2004 Election Commitments and Other Measures) Act 2005 – Item 19
Example of circumstances where the backdating provisions would not apply
If the pension only became payable because of the exemption of the bond and the making of a gift, then no backdating can occur.
Enters care on or before 1 July 2005
Where a person is in care and has paid a bond on or before 1 July 2005 and an income support pension becomes payable as a result of the accommodation bond exemptions, a person may have their claim backdated to 1 July 2005 if:
- the claim is lodged between 1 July 2005 and 30 September 2005 (inclusive), or
- if special circumstances exist and the claim is lodged between 1 October 2005 and 30 June 2006 (inclusive).
Enters care after 1 July 2005
Where a person pays a bond after 1 July 2005 and an income support pension becomes payable as a result of the accommodation bond exemptions, a person may have their claim backdated to the date the bond was paid if:
- the claim is lodged between 2 July 2005 and 30 September 2005 (inclusive), or
- if special circumstances exist and the claim is lodged between 1 October 2005 and 30 June 2006 (inclusive).
What constitutes special circumstances
There is no definitive description of what constitutes special circumstances. A Federal Court decision held that it is not possible to set out a complete list of the relevant factors to be taken into account in determining whether special circumstances exist. Each case must be considered on its own merits but the special circumstances provisions should be considered to apply unless there is compelling evidence to suggest that they should not apply.
Accommodation bond transitional provisions
http://www.fahcsia.gov.au/guides_acts/ssg/ssguide-1/ssguide-1.1/ssguide-1.1.a/ssguide-1.1.a.16.html
When the transitional provisions should not be applied
The accommodation bond special circumstances transitional provisions should not be applied to claims:
- made outside the transitional periods, and
- where the income support pension did not become payable as a result of the accommodation bond exemptions.