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Home > Compensation and Support Policy Library > Part 9 Principles for Determining Pension Rate > 9.2 Residential Situation > 9.2.2 Basic Principles of Assessment

9.2.2 Basic Principles of Assessment

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This section outlines the basic rules of assessment for the principal home.


Principal Home

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Last updated: 1 November 2012

Definition of a principal home - current residence

    

VEA ? [3]

The principal home [4] of a person is generally the place in which they reside. The following property is regarded as part of the principal home:     

More ? [5]

  • the residence itself (e.g. house, flat, caravan),
  • permanent fixtures (e.g. stoves, built-in heaters, dish-washers, light fittings and affixed carpets),
  • curtilage [4], and
  • any garage, shed, tennis court or swimming pool, if it is located on the same title as the residence and used primarily for private purposes.
Definition of a principal home - former residence

    

VEA ? [6]

In certain circumstances, the principal home of a person can be the place in which they formerly resided. For example, when a person has entered care, or where the person is temporarily absent from the home, their former home might still be regarded as their principal home. This means that the home remains exempt from the assets test assessment as it continues to be regarded as an exempt asset.     

More ? [7]

Assessment of refunded entry contribution on leaving a retirement village

Where a person receives a refund of their entry contribution amount on leaving a retirement village to enter aged care, the amount becomes an assessable asset as it no longer represents a principal home interest, i.e. an amount paid for the right to live in the retirement village.

However, entry contribution refunds may be delayed when a person leaves a retirement village. This may typically occur until the vacated unit is sold or for the time period specified in the Residential Agreement (commonly twelve months), whichever is the shorter period.

Where the refund of the person's entry contribution is delayed, and is not received for a period of time following their departure from the retirement village to enter aged care, the entry contribution amount continues to be exempt until such time as it is received.  Subject to the normal 2 year exemption limit, while the entry contribution amount remains with the retirement village owner it continues to represent the person's right to live in the retirement village, and retains the status of a right or interest in a principal home providing reasonable security of tenure.

For the extended exemption of the entry contribution amount to apply in these circumstances, it is necessary that the amount was a disregarded asset during the person's residency in the retirement village i.e. the amount exceeded the Extra Allowable Amount resulting in homeowner status.

Note: For means-testing relating to residential aged care fees and charges, policy advice from the Department of Social Services is that a refundable amount is assessable regardless of delays, or the likelihood of repayment.  Please refer to the Procedural Library for details.     

More ? [8]

Person owns more than one residence

Where a person owns more than one residence, only one home may be considered to be the principal home. This applies even if both residences are on the same title. The home in which the person normally resides is regarded as the person's principal home. The other residence must be assessed as an asset. This includes the determination and holding of an asset value, where the second residence is under construction.     

More ? [9]

The only exception to this general rule is where two dwellings have been built on the same property title under dual occupancy arrangements.    

More ? [10]

In the situation where a pensioner's principal home is contained within a block of flats or units, the value of any adjoining flat(s) also owned by the pensioner is assessed as an asset regardless of whether it is let.    

More ? [11]

The following table demonstrates which residence should be considered to be the principal home. The other home is an assessable asset.

If a pensioner or couple owns more than one home and...

Then...

spend unequal amounts of time in each property,

whichever property in which the greatest aggregate amount of time is spent each yearis considered to be the principal home.

spend identical periods of time in each,

for administration purposes, the most expensive home is considered to be the principal home.

live in both houses separately (where the couple's separation is not due to estrangement),

for administration purposes, the most expensive home is considered to be the principal home.

live in both houses separately due to illness (but neither live “in care”)

for administration purposes, the most expensive home is considered to be the principal home

Note: If the pensioner owns a lost or damaged principal home and is constructing or acquiring a new principal home, exemptions may apply to both properties in certain circumstances.    

More ? [12]

Holiday accommodation

Where an owned residence is occupied for part of a year by the pensioner and they spend the remainder of the year in rental holiday accommodation, this is considered to be only a temporary absence, and the owned residence remains the principal home. The temporary absence provisions only cease to apply after the pensioner has been in the rental accommodation for more than twelve months. Likewise, if a pensioner rents for the whole year but also pays holiday accommodation rent for part of the year, the principal residence remains the home that is rented for the whole of the year and rent assistance may be payable in respect of the principal home, but not for the holiday accommodation.    

More ? [13]

Section 5LA [14] VEA

VEA ? (go back) [15]

10.2.3/Disregarded Assets Relating to the Principal Home [16]

Section 9.2.3 Additional Assessment Rules for Certain Types of Residences [17]

More ? (go back) [18]

Section 5LA [14] VEA

VEA ? (go back) [19]

Section 9.2.7 Departure from the Principal Home [20]

More ? (go back) [21]

Procedure Library - Refundable entry contribution is an asset for ACA

9.2.8/What is included in ACA assessment [22]

More ? (go back) [23]

Valuing a property asset during construction

10.2.2/Valuation of Assets [24]

More ? (go back) [25]

9.2.3/Dual Occupancy Situations [26]

More ? (go back) [27]

Assessable property

9.2.2/Homeowner's Basic Assessment Rules [28]

More ? (go back) [29]

9.2.7/Temporary Absence [30]

More ? (go back) [31]

Temporary absences

9.2.7/Temporary Absence [30]

More ? (go back) [32]

The principal home has the meaning given by subsection 5LA(1) [33] of the VEA and subsection 5LA(2) [33] of the VEA. The principal home of a person is generally the place in which they reside. In certain circumstances, however, the principal home of a person can be the place in which they formerly resided. The following property is regarded as part of the principal home.

  • the residence itself (e.g. house, flat, caravan),
  • permanent fixtures (e.g. stoves, built-in heaters, dish-washers, light fittings and affixed carpets),
  • [glossary:curtilage:DEF/Curtilage] (i.e. two hectares [4] or less of private land [4] around the home where the private land use test [4] has been satisfied, or all land held on the same title as the person's principal home where the extended land use test [4] has been satisfied), or
  •       any garage, shed, tennis court or swimming pool used primarily for private purposes provided it is on the same title as the principal home.

 

 

Curtilage is the land adjacent to the exempt principal home [4].  A certain amount of curtilage is disregarded for the assets test. [4]. The amount of curtilage that is exempt depends on whether the private land use test [4] described in section 5LA(3) of the VEA, or the extended land use test [4] described in section 5LA(4) of the VEA, is satisfied. Under the private land use test, up to two hectares on the same title as the principal home may be exempt. Under the extended land use test, all land on the same title as the principal home may be exempt.

 

 

Married Couples Living Apart

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Last updated: 24 April 2008

Assessment of married couples living apart

The assessment of whether married couples who live apart are both treated as homeowners [4] depends on the reason for separation.

A person, including a person who is a member of a couple, may only have their right or interest in one property disregarded for assets test purposes.     

More ? [35]

Married couples living apart (not due to estrangement or illness)

Where only one member of a couple [4] resides in the home property, but there is no estrangement their homeownership status is not affected by their living apart. Each member of the couple has the married homeowner assets limit applied and the value of the home is disregarded.

Where a married couple own more than one home and live in both houses separately, for administration purposes, the most expensive home is considered to be the principal home. The home of lesser value is assessable under the assets test.

Married couples living apart due to estrangement

If married couples are living apart due to estrangement, they are each treated as separate entities. A separated person living in a home which he or she owns solely or jointly is a single homeowner. A separated person who owns a house solely or jointly but is no longer living in it has the value of his or her share of the house assessed as an asset.

Married couples living apart due to illness

Special rules apply where the couple is an illness separated couple [4]. Rent assistance [4] may be payable when one party has paid an entry contribution [4] in return for accommodation rights in a special residence [4], or has entered non-government subsidised care [4].

If a couple own more than one home and live in both houses separately due to illness (but neither live “in care”) for administration purposes, the most expensive home is considered to be the principal home. The home of lesser value is assessable under the assets test.    

More ? [36]


Married couples

Chapter 9.3 [37]

More ? (go back) [38]

Special residences and non government subsidised care

9.2.5/Special Residence - Basic Assessment Rules [39]

9.2.4/In Care Assessment Rules [40]

More ? (go back) [41]

A person is a homeowner if they have a right or interest, which gives reasonable security of tenure in the principal home.

Refer to sections 52Q and 52R of VEA for the definition when determining if a person is a considered to be a homeowner when living in a special residence.  

A person is also considered to be a homeowner if they have sold their home in the previous 12 months and intend to use part or all of the proceeds to purchase another home.

 

 

According to Section 5E(2) [42]of the VEA [42]a person is a member of a couple, if they are:

  • legally married to another person and is not living separately and apart from the other person on a permanent basis; or
  • living in a prescribed registered relationship with the other person (whether of the same sex or a different sex) and is not living separately and apart from that other person on a permanent basis; or
  • all of the following conditions are met:
  • living with another person, whether of the same sex or a different sex;
  • not legally married to that person;
  • in a de facto relationship with that person; and
  • not in a prohibited relationship

The term “partnered” is also commonly used.

An illness separated couple is a couple who cannot share a home because of the illness or infirmity of one or both partners. Illness separated couples may be paid the higher single rate of pension. Refer to subsection 5R(5) [33] of the VEA for the full definition.

 

 

Rent Assistance is an allowance, which may be paid to a service pensioner or income support supplement (ISS) recipient to assist in meeting the cost of rental accommodation.

To receive rent assistance, a pensioner must be paying rent (other than Government rent) for accommodation in Australia, and the amount paid must exceed a certain threshold.

An entry contribution is the amount paid or agreed to be paid by a person for the right to live in a:

  • retirement village; or
  • granny flat.

If a person lives in a home subject to a sale leaseback agreement, the entry contribution is the balance of the amount still to be paid by a buyer, at the date of a sale leaseback agreement.

Refer to Section 52M of the VEA for the full definition.

 

 

 

According to subsection 5MC(2) of the VEA [33] a special residence is:

  • a retirement village; or
  • a granny flat; or
  • a sale leaseback home.

 

 

Non-Government Subsidised care applies to the following groups:

  • pensioners residing in nursing homes or hostels that are not approved facility [4];
  • pensioners who are residing in a nursing home or hostel but who are not approved care recipients. For instance, a person may be residing in a nursing home or hostel to be near to their partner who is receiving care (known as co-habitees) or a person may be in a multi purpose service (MPS) unit; and
  • pensioners residing in an approved facility but who receive accommodation only, require no care and therefore are not receiving Commonwealth Government subsidised care [4].

No Commonwealth Government subsidy, including pensioner supplement, is payable to the facility in respect of their places.

 

 

Homeowner's Basic Assessment Rules

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Last updated: 8 November 2013

Definition of a homeowner

    

VEA ? [44]

A person is a homeowner [4] if they have a right or interest in the residence they are living in, which gives reasonable security of tenure. A person who is a member of a couple [4] is considered to be a homeowner if they or their partner [4] has a right or interest in one residence that is the principal home [4] of one or both of them. Married couples living apart may be treated differently.  Different rules apply to people who have left their principal home in order to go into a care situation or become an aged care resident.    

More ? [45]

Security of tenure

Security of tenure exists where a person has a right or interest in a property, unless the delegate is satisfied that the right or interest does not give rise to security of tenure. Accordingly, the types of security in some leases are taken to provide security of tenure. For example, a guarantee to a mobile home owner that a current lease arrangement is to be extended, will satisfy the requirement of reasonable security of tenure.

Mortgage over home

If a pensioner has a right or interest in a property, but is paying off a mortgage, they are still classed as a homeowner.

Sale of the former principal home

    

VEA ? [46]

A person is also considered to be a homeowner where the person:     

More ? [47]

  • has sold their principal home
  • within the previous 12  months, or
  • within the previous 24  months if granted an extension due to delays beyond their control, and
  • intends to apply some or all of the sale proceeds in acquiring another residence that is to be the person's principal home.
Temporary absence from principal home

    

VEA ? [48]

A person may continue to be regarded as a homeowner while temporarily absent from their principal home:     

More ? [49]

  • if there is a clear intention to return to live in the home, within the first 12 months of absence, or
  • if absent due to the home being lost or damaged and they intend to repair/rebuild the former home or acquire a new home
  • for up to 12 months, or
  • for up to 24 months if granted an extension due to delays beyond their control.
Assessment of principal home

    

VEA ? [50]

A homeowner's principal home is a disregarded asset under the assets test [4]. This includes the:

  • dwelling (example, house, flat or unit),
  • fixtures, and
  • curtilage [4].     More ? [51]
Dual occupancy

If a person has established a dual occupancy dwelling, being two separate dwellings on the same land title that cannot be subdivided, then the second dwelling may also be disregarded under the assets test.  The delegate will need to be reasonably satisfied that the second dwelling forms part of the person's principal home.    

More ? [52]

Homeowner's assets limit

The lower assets value limit [4] applies to homeowners.    

More ? [53]

Homeowners and rent assistance

    

VEA ? [54]

Homeowners are not eligible to receive rent assistance [4], unless:    

More ? [55]

  • the proceeds from the sale of the principal home have been disregarded,      More ? [56]
  • they are absent from the principal home while it is uninhabitable due to loss or damage,     More ? [57]
  • they are absent from the principal home due to entering care, or     More ? [58]
  • their principal home is a home such as a caravan, boat or other vehicle, or a structure, for which site fees are paid.     More ? [59]
Household contents

Household contents are not exempt. They are assessable for assets test purposes. The amount to be held is the market value, not the replacement value.     

More ? [60]


Section 5L(4) [14] VEA

VEA ? (go back) [61]

Assessing the homeownership status of married couples and principal homes

9.2.2/Married couples living apart [62]

9.2.2/Principal Home [63]

In Care – Assessment Rules

Section 9.2.4 [64]

More ? (go back) [65]

Section 5L(4) (c) [14] VEA

VEA ? (go back) [66]

9.2.7/Sale or Deprivation of Home [67]

9.2.7/Extension of Home Proceeds Exemption [68]

More ? (go back) [69]

Section 5LA(9) (a) [14] VEA

Section 5LA(9A) [14] VEA

VEA ? (go back) [70]

9.2.7/Temporary Absence [30]

9.2.7/Extension of Home Proceeds Exemption [68]

More ? (go back) [71]

Section 52(1) [14] VEA

VEA ? (go back) [72]

9.2.3/House and Curtilage [73]

More ? (go back) [74]

9.2.3/Dual occupancy situations [26]

More ? (go back) [75]

9.1.3/The Assets Test [76]

More ? (go back) [77]

Section 5N(1) [14] VEA

VEA ? (go back) [78]

Section 5.1.2 Eligibility Criteria for Rent Assistance [79]

9.2.2/Amount of Rent Paid [80]

More ? (go back) [81]

9.2.7/Sale or Deprivation of Home [67]

More ? (go back) [82]

9.2.7/Temporary Absence [30]

More ? (go back) [83]

9.2.7/Entering Care [84]

More ? (go back) [85]

9.2.3/Mobile Home [86]

More ? (go back) [87]

10.2.4/Assets Value of Personal Effects, Household Contents, Vehicles and Cash [88]

More ? (go back) [89]

A person is a homeowner if they have a right or interest, which gives reasonable security of tenure in the principal home.

Refer to sections 52Q and 52R of VEA for the definition when determining if a person is a considered to be a homeowner when living in a special residence.  

A person is also considered to be a homeowner if they have sold their home in the previous 12 months and intend to use part or all of the proceeds to purchase another home.

 

 

According to Section 5E(2) [42]of the VEA [42]a person is a member of a couple, if they are:

  • legally married to another person and is not living separately and apart from the other person on a permanent basis; or
  • living in a prescribed registered relationship with the other person (whether of the same sex or a different sex) and is not living separately and apart from that other person on a permanent basis; or
  • all of the following conditions are met:
  • living with another person, whether of the same sex or a different sex;
  • not legally married to that person;
  • in a de facto relationship with that person; and
  • not in a prohibited relationship

The term “partnered” is also commonly used.

A person's 'partner' is someone who is a member of a couple with that person.

The principal home has the meaning given by subsection 5LA(1) [33] of the VEA and subsection 5LA(2) [33] of the VEA. The principal home of a person is generally the place in which they reside. In certain circumstances, however, the principal home of a person can be the place in which they formerly resided. The following property is regarded as part of the principal home.

  • the residence itself (e.g. house, flat, caravan),
  • permanent fixtures (e.g. stoves, built-in heaters, dish-washers, light fittings and affixed carpets),
  • [glossary:curtilage:DEF/Curtilage] (i.e. two hectares [4] or less of private land [4] around the home where the private land use test [4] has been satisfied, or all land held on the same title as the person's principal home where the extended land use test [4] has been satisfied), or
  •       any garage, shed, tennis court or swimming pool used primarily for private purposes provided it is on the same title as the principal home.

 

 

One element of the means test for income support pensions whereby the rate of pension payable to a pensioner reduces progressively as their assets increase above a certain threshold known as the assets value limit (AVL). [90]

Curtilage is the land adjacent to the exempt principal home [4].  A certain amount of curtilage is disregarded for the assets test. [4]. The amount of curtilage that is exempt depends on whether the private land use test [4] described in section 5LA(3) of the VEA, or the extended land use test [4] described in section 5LA(4) of the VEA, is satisfied. Under the private land use test, up to two hectares on the same title as the principal home may be exempt. Under the extended land use test, all land on the same title as the principal home may be exempt.

 

 

Assets value limit is the maximum value of assets a person can have without affecting the person's pension rate. The assets value limit is worked out in accordance with SCH6-F3 of the VEA [42].

Rent Assistance is an allowance, which may be paid to a service pensioner or income support supplement (ISS) recipient to assist in meeting the cost of rental accommodation.

To receive rent assistance, a pensioner must be paying rent (other than Government rent) for accommodation in Australia, and the amount paid must exceed a certain threshold.

Non-Homeowner's Basic Assessment Rules

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Last updated 12 January 2007

Definition of a non-homeowner

A non-homeowner is a person who does not have a right or interest which gives reasonable security of tenure in the principal home [4].

Non-homeowner's eligibility for rent allowance

Non-homeowners do not have any right or interest in their principal home and therefore may be eligible for rent assistance [4].    

More ? [92]

Residential situations where rent assistance may be payable

Person's residing in any of the residential situations listed below may be eligible to receive rent assistance, depending on the amount of rent paid.    

More ? [93]

  • private renters,
  • boarders & lodgers,
  • mobile home,     More ? [94]
  • temporary renters,     More ? [95]
  • retirement villages (subject to the entry contribution paid),     More ? [96]
  • granny flats,     More ? [97]
  • sale leaseback arrangements,     More ? [98] or
  • non-government subsidised care [4].
Residential situations where there is no rent assistance payable

Persons residing in any of the residential situations listed below are not eligible to receive rent assistance.

  • government renters,
  • free accommodation,
  • government subsidised care [4], or
  • ineligible property owners [4].

Note: When determining eligibility for housing assistance state government authorities do not take into account the Australian government payment of $25,000 made to World War 2 Australian ex-prisoners of the Japanese, or their widows [4] or widowers [4]. Income [4] earned or derived from the payment, whether deemed or actual, is taken into account when determining a tenant's rent or an applicant's eligibility for public housing. The exception is the NSW housing department, which does not take income derived from the payment when determining the level of housing assistance.

Non-homeowner's assets limit

The higher assets limit applies to non-homeowners.    

More ? [99]

Household contents

Household contents are not exempt. They are assessable for assets test purposes. The amount to be held is the market value, not the replacement value.    

More ? [100]


Principal homes

9.2.2/Principal Home [63]

More ? (go back) [101]

Assessing rent

9.2.2/Amount of Rent Paid [80]

More ? (go back) [102]

Mobile home

9.2.3/Mobile Home [86]

More ? (go back) [103]

Sale or Deprivation of Home

9.2.7/Sale or Deprivation of Home [67]

More ? (go back) [104]

Special Residence – Assessment Rules

Section 9.2.5 Special Residence – Assessment Rules [105]

More ? (go back) [106]

Special Residence – Assessment Rules

Section 9.2.5 Special Residence – Assessment Rules [105]

More ? (go back) [107]

Sale Leaseback Arrangements

9.2.5/Sale Leaseback Arrangements [108]

More ? (go back) [109]

Asset value limits

Chapter 9.1 [110]

More ? (go back) [111]

Assessable income and assets

Chapter 9.1 Income and Assets Test Principles [110]

More ? (go back) [112]

The principal home has the meaning given by subsection 5LA(1) [33] of the VEA and subsection 5LA(2) [33] of the VEA. The principal home of a person is generally the place in which they reside. In certain circumstances, however, the principal home of a person can be the place in which they formerly resided. The following property is regarded as part of the principal home.

  • the residence itself (e.g. house, flat, caravan),
  • permanent fixtures (e.g. stoves, built-in heaters, dish-washers, light fittings and affixed carpets),
  • [glossary:curtilage:DEF/Curtilage] (i.e. two hectares [4] or less of private land [4] around the home where the private land use test [4] has been satisfied, or all land held on the same title as the person's principal home where the extended land use test [4] has been satisfied), or
  •       any garage, shed, tennis court or swimming pool used primarily for private purposes provided it is on the same title as the principal home.

 

 

Rent Assistance is an allowance, which may be paid to a service pensioner or income support supplement (ISS) recipient to assist in meeting the cost of rental accommodation.

To receive rent assistance, a pensioner must be paying rent (other than Government rent) for accommodation in Australia, and the amount paid must exceed a certain threshold.

Non-Government Subsidised care applies to the following groups:

  • pensioners residing in nursing homes or hostels that are not approved facility [4];
  • pensioners who are residing in a nursing home or hostel but who are not approved care recipients. For instance, a person may be residing in a nursing home or hostel to be near to their partner who is receiving care (known as co-habitees) or a person may be in a multi purpose service (MPS) unit; and
  • pensioners residing in an approved facility but who receive accommodation only, require no care and therefore are not receiving Commonwealth Government subsidised care [4].

No Commonwealth Government subsidy, including pensioner supplement, is payable to the facility in respect of their places.

 

 

Government Subsidised Care is care provided to persons in approved facilities [4].

The government subsidy (also known as “pensioner supplement”), is paid directly to the facility by DH&FS [4] on the behalf of pensioners receiving this care.

Where a care resident pays an accommodation bond [4] more than ten times the annual rate of social security age pension, the pensioner supplement paid by DH&FS [4] to the aged care facility to replace rent assistance is no longer paid.

 

 

An ineligible property owner is a property owner who is ineligible for rent assistance.

According to subsection 5N(1) of the VEA [33], these people are not regarded as ineligible property owners and therefore may be eligible for rent assistance:

  • a person who is a property owner by virtue of paragraph 5L(4)(c) (proceeds of sale of principal home disregarded for 12 months); or
  • a person who:
  • is absent from the person's principal home, in relation to which the person is a property owner; and
  • is in a care situation but is not residing in a retirement village; or
  • a person who:
  • is absent from the person's principal home, in relation to which the person is a property owner; and
  • is personally providing community-based care for another person; or
  • a person who pays amounts for the use of a site for a caravan or other vehicle, or a structure, that is the person's principal home; or
  • a person who pays amounts for the right to moor a vessel that is the person's principal home.

 

 

A widow is a woman who was:

  • the partner of a person immediately before the person died; or
  • legally married to a man and living with him immediately before he died; or
  • legally married to a man and living separetely and apart from him on a permanent basis, immediately before he died.

A widower is a man who was:

  • the partner of a person immediately before the person died: or
  • legally married to a woman and living with her immediately before she died; or
  • legally married to a woman and living separetely and apart from her on a permanent basis immediately before she died.

According to section 5H of the VEA [113] income is:

  • an amount earned, derived or received by a person for the person's own use or benefit;
  • a periodical payment by way of gift or allowance; or
  • a periodical benefit by way of gift or allowance.

 

 

Amount of Rent Paid

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Last updated 12 January 2007

Frequency of rent payment

Persons who pay rent on a regular basis, may be eligible to receive rent assistance [4]. This also applies to persons who do not pay rent on a regular basis, provided they pay or are liable to pay rent at least annually.    

More ? [115]

Examples of rental situations, where rent is not paid on a regular basis

The following are examples of rent that is not paid on a regular basis to reside in that premises:

  • site fees for a mobile home [86],
  • service or maintenance fees for services provided in a HOTWORD "Def retirement village">retirement village [4], or
  • service or maintenance fees as a condition of occupancy in a home subject to a HOTWORD "Def sale leaseback agreement">sale leaseback agreement [4].
Adjustment of partner's rent when separated due to illness

Where a pensioner couple are residing in rented accommodation, and one member of the couple enters care, for assessment purposes, the amount of rent the partner [4] pays should be adjusted.    

More ? [116]

Assessment of rent amount that includes board

    

VEA ? [117]

If a person pays for board and lodging and the component paid for accommodation cannot be identified, two thirds of the total amount paid is considered to be rent. For automatic assessment purposes, 67% of the total amount paid is calculated.

Examples of residential situations where the rent amount may include board.

The following residential situations may include a component for board in the rent amount:

  • boarders,
  • nursing home patients not subsidised by the Australian Government,
  • retirement village [4] residents, or
  • persons in a care situation.
Person paying rent for two premises

    

VEA ? [118]

If a person leaves their principal home [4] to provide or receive community based care in another residence and they are paying rent in respect of both residences, rent is assessed in respect of the residence that generates the higher amount of rent assistance.    

More ? [119]

Discrepancy between rent paid and rent required to be paid

Situations may occur where the amount of rent payable is actually higher than the amount of rent paid. In such situations, rent assistance is to be calculated using the higher amount. However, details as to why rent is being paid at a lower level than the payable amount should be obtained and verified with the landlord.

Example of a rent discrepancy

An example of this situation is where a landlord has increased the rent payable on a property but the tenant is in dispute with the landlord and is still paying at the lower rate.


Eligibility for rent assistance

Section 5.1.2 [79]

More ? (go back) [120]

Married couples living apart

9.2.2/Married couples living apart [62]

More ? (go back) [121]

Section 5N(6) [14] VEA

VEA ? (go back) [122]

Section 5N(3) [14] VEA

VEA ? (go back) [123]

Principal home and calculation rent assistance

9.2.2/Principal Home [63]

5.1.3/Calculating the Rate of Rent Assistance Payable [124]

More ? (go back) [125]

Rent Assistance is an allowance, which may be paid to a service pensioner or income support supplement (ISS) recipient to assist in meeting the cost of rental accommodation.

To receive rent assistance, a pensioner must be paying rent (other than Government rent) for accommodation in Australia, and the amount paid must exceed a certain threshold.

According to subsection 5M(3) of the VEA [33], premises constitute a retirement village if:

  • the premises are residential premises; and
  • accommodation in the premises is primarily intended for persons who are at least 55 years old; and
  • the premises consist of one or more of the following kinds of accommodation:
  • self-care units;
  • serviced units;
  • hostel units; and
  • the premises include communal facilities for use by occupants of the units referred to above.

 

 

According to subsection 5MB(2) of the VEA [33] an agreement is a sale leaseback agreement, in relation to a person, if:

  • under the agreement the person agrees to sell his or her principal home; and
  • the residence that is the person's principal home is a private residence; and
  • under the agreement the person retains a right to accommodation in the residence; and
  • under the agreement the buyer is to pay an amount when the person vacates the residence or when the person dies.

 

 

A person's 'partner' is someone who is a member of a couple with that person.

According to subsection 5M(3) of the VEA [33], premises constitute a retirement village if:

  • the premises are residential premises; and
  • accommodation in the premises is primarily intended for persons who are at least 55 years old; and
  • the premises consist of one or more of the following kinds of accommodation:
  • self-care units;
  • serviced units;
  • hostel units; and
  • the premises include communal facilities for use by occupants of the units referred to above.

 

 

The principal home has the meaning given by subsection 5LA(1) [33] of the VEA and subsection 5LA(2) [33] of the VEA. The principal home of a person is generally the place in which they reside. In certain circumstances, however, the principal home of a person can be the place in which they formerly resided. The following property is regarded as part of the principal home.

  • the residence itself (e.g. house, flat, caravan),
  • permanent fixtures (e.g. stoves, built-in heaters, dish-washers, light fittings and affixed carpets),
  • [glossary:curtilage:DEF/Curtilage] (i.e. two hectares [4] or less of private land [4] around the home where the private land use test [4] has been satisfied, or all land held on the same title as the person's principal home where the extended land use test [4] has been satisfied), or
  •       any garage, shed, tennis court or swimming pool used primarily for private purposes provided it is on the same title as the principal home.

 

 


Source URL (modified on 14/10/2014 - 11:10am): https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/92-residential-situation/922-basic-principles-assessment

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[4] https://clik.dva.gov.au/%23
[5] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn99
[6] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn100
[7] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn101
[8] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn102
[9] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn103
[10] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn104
[11] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn105
[12] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn106
[13] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn107
[14] https://clik.dva.gov.au/service-eligibility-assistant-updates/all-determinations-order-date-signed-oldest-most-recent/determinations-under-vea
[15] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn98
[16] https://clik.dva.gov.au/compensation-and-support-policy-library/part-10-types-income-and-assets/102-assets/1023-disregarded-assets/disregarded-assets-relating-principal-home
[17] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/92-residential-situation/923-additional-assessment-rules-certain-types-residences
[18] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn99
[19] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn100
[20] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/92-residential-situation/927-departure-principal-home
[21] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn101
[22] https://clik.dva.gov.au/compensation-and-support-procedure-library/part-9-principles-determining-pension-rates/92-residential-situation/928-aged-care-means-test-assessments/what-included-means-test-assessment
[23] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn102
[24] https://clik.dva.gov.au/compensation-and-support-policy-library/part-10-types-income-and-assets/102-assets/1022-determining-value-asset/valuation-assets
[25] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn103
[26] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/92-residential-situation/923-additional-assessment-rules-certain-types-residences/dual-occupancy-situations
[27] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn104
[28] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/92-residential-situation/922-basic-principles-assessment/homeowners-basic-assessment-rules
[29] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn105
[30] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/92-residential-situation/927-departure-principal-home/temporary-absence
[31] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn106
[32] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn107
[33] http://clik.dva.gov.au/legislation-library
[34] https://clik.dva.gov.au/user/login?destination=node/16098%23comment-form
[35] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn108
[36] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn109
[37] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/93-relationship-status
[38] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn108
[39] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/92-residential-situation/925-special-residence-assessment-rules/special-residence-basic-assessment-rules
[40] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/92-residential-situation/924-care-assessment-rules/care-assessment-rules
[41] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn109
[42] http://www.comlaw.gov.au/Series/C2004A03268
[43] https://clik.dva.gov.au/user/login?destination=node/16015%23comment-form
[44] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn110
[45] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn111
[46] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn112
[47] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn113
[48] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn114
[49] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn115
[50] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn116
[51] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn117
[52] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn118
[53] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn119
[54] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn120
[55] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn121
[56] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn122
[57] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn123
[58] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn124
[59] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn125
[60] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn126
[61] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn110
[62] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/92-residential-situation/922-basic-principles-assessment/married-couples-living-apart
[63] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/92-residential-situation/922-basic-principles-assessment/principal-home
[64] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/92-residential-situation/924-care-assessment-rules
[65] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn111
[66] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn112
[67] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/92-residential-situation/927-departure-principal-home/sale-or-deprivation-home
[68] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/92-residential-situation/927-departure-principal-home/extension-home-proceeds-exemption
[69] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn113
[70] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn114
[71] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn115
[72] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn116
[73] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/92-residential-situation/923-additional-assessment-rules-certain-types-residences/house-and-curtilage
[74] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn117
[75] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn118
[76] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/91-income-and-assets-test-principles/913-income-and-assets-tests/assets-test
[77] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn119
[78] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn120
[79] https://clik.dva.gov.au/compensation-and-support-policy-library/part-5-income-support-allowances-and-benefits/51-rent-assistance/512-eligibility-criteria-rent-assistance
[80] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/92-residential-situation/922-basic-principles-assessment/amount-rent-paid
[81] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn121
[82] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn122
[83] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn123
[84] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/92-residential-situation/927-departure-principal-home/entering-care
[85] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn124
[86] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/92-residential-situation/923-additional-assessment-rules-certain-types-residences/mobile-home
[87] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn125
[88] https://clik.dva.gov.au/compensation-and-support-policy-library/part-10-types-income-and-assets/102-assets/1024-assessing-personal-assets-and-investments/assets-value-personal-effects-household-contents-vehicles-and-cash
[89] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn126
[90] http://clik.dva.gov.au/glossary/assets-value-limit-avl
[91] https://clik.dva.gov.au/user/login?destination=node/16136%23comment-form
[92] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn127
[93] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn128
[94] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn129
[95] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn130
[96] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn131
[97] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn132
[98] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn133
[99] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn134
[100] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn135
[101] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn127
[102] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn128
[103] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn129
[104] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn130
[105] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/92-residential-situation/925-special-residence-assessment-rules
[106] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn131
[107] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn132
[108] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/92-residential-situation/925-special-residence-assessment-rules/sale-leaseback-arrangements
[109] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn133
[110] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/91-income-and-assets-test-principles
[111] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn134
[112] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn135
[113] http://clik/health-procedure-library/health-information-and-management-notes-himn/vhc/072014-vhc-veterans-home-care
[114] https://clik.dva.gov.au/user/login?destination=node/16141%23comment-form
[115] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn136
[116] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn137
[117] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn138
[118] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn139
[119] https://clik.dva.gov.au/book/export/html/16096#tgt-cspol_part9_ftn140
[120] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn136
[121] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn137
[122] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn138
[123] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn139
[124] https://clik.dva.gov.au/compensation-and-support-policy-library/part-5-income-support-allowances-and-benefits/51-rent-assistance/513-payment-rent-assistance/calculating-rate-rent-assistance-payable
[125] https://clik.dva.gov.au/book/export/html/16096#ref-cspol_part9_ftn140