Background

Prior to 1 October 1997, pensioners residing in nursing homes and hostels were assessed as homeowners, and the lower assets value limit applied, if:

• they were assessed under the nursing home assessment rules whereby their principal home is exempt as an asset for two years (or until sold if this happens within two years) following vacation of the home; or
• they were assessed under the entry contribution rules (hostel residents only) and the entry contribution they have paid is greater than the extra allowable amount (currently $90,000).

In any other situation, nursing home and hostel residents were assessed as non-homeowners and the higher assets value limit applied.