C04/2003 Self Funded Retiree with QS and DP - Partner's income assessment for Residential Aged Care fees

Purpose

The purpose of this departmental instruction is to provide instructions on how to register the partners of self funded retiree (SFR) veterans who have qualifying service (QS) and are in receipt of disability pension (DP), in order to exempt the disability pension from the partner's residential aged care income assessment.

Background

A self funded retiree who:

• receives a disability pension from DVA, and
• has qualifying service;

automatically has their disability pension excluded from the income assessment for the purpose of residential aged care income tested fees.

The partner of a veteran in this situation also has the veterans' disability pension excluded from their residential aged care income assessment.  However, as the veteran is only receiving DP, the partner will not appear in any PIPS PC assessment (unless they are also receiving disability pension).

Under these circumstances the partner's data needs to be manually entered in to PIPS PC to ensure that DP is not included in their residential aged care income assessment.

How to enter partner's details

The following steps should be followed to manually enter in to PIPS PC the personal details of a partner of a veteran with QS receiving DP.

1. Register a Department Initiated Action (DIA).
2. Create a PIPS case using “Date of Effect Rules don't apply”.
3. ADD the spouse into the assessment. 
4. On the Adult Details screen for the spouse select “Not paid DSS or DVA”.
5. Suppress the advice as this should be a Nil Variation.
6. Finalise the case.
7. The spouse will now appear on the PIPS PC Residential Care Details screen.

How to enter partner's income details

For cases involving a person with qualifying service (or their partner) the aged care income test is the service pension income test.  The following steps should be followed to enter the assessable income data of the partner in the PIPS PC Residential Care screen (once the partner's personal data has been entered as per above instructions).

1. Bring up the “What If” screen in PIPS/PC.
2. Enter the couple's combined income.
3. Subtract the Income Free Area.  Half of this amount is the partner's income amount.
4. Re-enter the Residential Care Details screen.
5. Enter the partner's income amount and the date.

Note: It is very important to record and act on any adjustments to income where a SFR discloses a change in their income.  It is also important to manually review cases when indexation of the ordinary income free area occurs and when changes to deeming rates and thresholds occur.

Contact

Should you require further information please contact Kirrily Williams in Income Support Policy, National Office, on (02) 6289 6525.