Apart from certain exceptions, all future residents of aged care facilities who are self-funded retirees, receive disability pension and have qualifying service, will benefit from the exemption of disability pension as income. This also applies to the spouse of such veterans if they are a resident.
By claiming the exemption Hostel residents entering aged care after 1 October 1997 will pay significantly less fees than they would under the pre 1 October 1997 rules. Nursing home residents will also benefit by claiming the exemption.
Residents receiving hostel level care on a variable fee arrangement that they entered into prior to 1 October 1997 and residents of exempt nursing homes will however continue to have income assessed under existing arrangements.
Residents of hostels paying fees under a variable fee arrangement entered into prior to 1 October will continue to have disability pension assessed as income in the calculation of their variable fees unless they transfer to a new facility.