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Difference in contribution offsets loss of rent assistance
The basic daily resident contribution of pensioners has been set lower than the basic daily resident contribution of self-funded retirees to offset the loss of rent assistance which pensioners in aged care are no longer eligible for after 1 October 1997.
The difference between $26.40 ($26.91 from 2 April 1998) and $21.10 ($21.52 from 2 April 1998) is $5.30 per day or $74.20 per fortnight. This approximates the maximum value of the rent assistance that a pensioner may have lost.
The $5.30 per day difference is paid to service providers by DH&FS as a pensioner supplement.