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Compensation and Support Reference Library
Departmental Instructions
1998
C12/1998 AGED CARE REFORMS
IMPACT ON INCOME SUPPORT POLICY
INCOME TESTING OF AGED CARE FEES
INCOME TESTING OF AGED CARE FEES
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Background
Impact on pensioners
Impact on self-funded retirees
Components of daily fees
Commonwealth subsidy payable
DVA pays Commonwealth subsidy for certain residents
Basic daily resident contribution
Basic daily resident contribution for persons who lose pensioner status
Difference in contribution offsets loss of rent assistance
Resident pays the lesser of income tested fee or Commonwealth subsidy
What will be assessed as income?
Example - application of income test.
Income of couples
Maximum rate pensioners will not incur income tested fees
Maximum fees payable
Ready reckoners
Who will be income tested
Variable fee hostel residents
Blinded pensioners
Option not to be income tested
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