The purpose of this departmental instruction is to:

• inform staff on changes introduced in the Aged Care Act 1997;
• clarify the impact of the new legislation on DVA income support policy, and
• describe procedures relating to:

• the cancellation of rent assistance paid to aged care residents from 1 October 1997 (effective payday 9 October 1997);
• the assessment of accommodation bonds commencing from 1 October 1997; and
• the income testing of daily resident fees from 1 March 1998 and DVA's involvement in this process.

As a number of significant changes to income testing and it's impact on pension assessments have been announced since 1 October 1997, this instruction must be read in conjunction with DI No C13/98.

Authorised by

R. J. HAY

BRANCH HEAD

INCOME SUPPORT