The former principal home is counted as an asset, unless at the time of entry to care/the date of the assessment (whichever is earlier), the home was occupied by a protected person.
Under the post-1 July 2014 arrangements, if the former principal home is not occupied by a protected person, the rule is modified and the value of the principal home will be included up to a capped amount. This cap also applies to the refund of the retirement village entry contribution.
4.4.1.1 Protecting the former principal home
A person eligible to protect (exempt) the former principal home includes:
- the person’s partner,
- a dependent child,
- an eligible carer, or
- an eligible close relation.
The Aged Care legislation defines an eligible carer as the person’s carer who is eligible for an income support payment, and has lived in the home for the past two years. An eligible close relation is defined as a close relation (either mother, father, sister, brother, child or grandchild) who is eligible for an income support payment and has lived in the home for the past five years.
The person's carer, or the eligible close relation, must have been living in the person's former home with the person who is entering aged care for the whole of the required period(s), in order for the value of the home to be excluded.