Last amended: 25 July 2006
VEA ? [2]
To determine the homeowner [3] status for a person in a special residence [3], the entry contribution [3] is compared to the extra allowable amount [3] (EAA).
More ? [4]
If a special resident's entry contribution... |
Then they are assessed as a... |
And... |
exceeds the extra allowable amount |
homeowner More ? [5] |
|
is less than or equal to the extra allowable amount |
non-homeowner More ? [6] |
|
VEA ? [8]
The EAA is the difference between the assets value limits for a property owner (low limit) and a non-property owner (high limit) that applies to the person.
Note: A person's entry contribution and EAA are assessed on an individual basis even if they are a member of a couple [3]. Assets value limits for couples (partnered or illness separated [3]) are generally quoted on rates charts as a combined figure and will require conversion to an individual rate before calculating EAA.
The person's domestic circumstances may impact the basic assessment rules. The following three tables cover possible scenarios in these main groupings:
Note: A special assets value limit [3] applies to illness separated couples in special residences in certain circumstances.
The following table provides assessment rules for possible scenarios of persons who are not a member of a couple and reside in a special residence.
If the person is not a member of a couple, resides in a special residence and the entry contribution is... |
Then the person is a special resident and is assessed as... |
|
more than the EAA [3] VEA ? [9] |
a homeowner. More ? [10] |
|
less than or equal to the EAA VEA ? [11] |
More ? [12] |
The following table provides assessment rules for possible scenarios of persons who are a member of a couple and reside in a special residence.
If the person is a member of a couple and resides in a special residence... |
And the individual entry contribution is... |
Then follow the assessment rules contained in... |
whose partner resides in the same special residence VEA ? [13] |
more than the EAA |
|
whose partner resides in the same special residence VEA ? [14] |
less than or equal to the EAA |
|
whose partner resides in another special residence VEA ? [15] |
more than the EAA |
|
whose partner resides in another special residence VEA ? [16] |
less than or equal to the EAA |
|
whose partner VEA ? [17]
|
any amount |
|
whose partner VEA ? [18]
|
more than the EAA |
Note: Even though the partner is not a property owner, as a member or a couple they are both taken to be homeowners of the special residence. |
whose partner VEA ? [19]
|
less than or equal to the EAA |
|
The following table provides assessment rules for possible scenarios of persons who are a member of an illness separated couple and reside in a special residence.
If the person resides in a special residence and is a member of an illness separated couple... |
And the entry contribution(s)... |
Then the person is assessed as... |
And their partner is assessed as... |
whose partner is also a special resident VEA ? [20] |
are both more than the EAA |
|
|
whose partner is also a special resident VEA ? [21] |
are both less than or equal to the EAA |
|
|
whose partner is also a special resident VEA ? [22] |
|
Note: A special assets value limit applies |
|
whose partner VEA ? [23]
|
is more than the EAA |
|
|
whose partner VEA ? [24]
|
is less than or equal to the EAA |
Note: A special assets value limit applies |
|
whose partner VEA ? [25]
|
is more than the EAA |
Note: A special assets value limit applies |
|
whose partner VEA ? [26]
|
is less than or equal to EAA |
|
|
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 subsection 5MC(2) of the VEA [59] a special residence is:
An entry contribution is the amount paid or agreed to be paid by a person for the right to live in a:
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.
The "extra allowable amount" is the difference between the property owner assets value limit and the non property owner assets value limit which applies to the person.
As the property and non property owner assets value limits are indexed or adjusted on an annual basis, the extra allowable amounts also increase annually.
The assets value limits applied to this formula are the limits applicable at the time the person made the entry contribution to enter the special residence.
Refer to Section 52N [59] of the VEA for the full definition.
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). [60]
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 [61].
Rent Assistance is an allowance which may be paid to a service pensioner, income support supplement (ISS) or veteran payment 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 Section 5E(2) [61]of the VEA [61]a person is a member of a couple, if they are:
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) [59] of the VEA for the full definition.
The term not a member of a couple covers all persons who are not covered by the definitions of member of a couple [3].
The Special Assets Value Limit is calculated by the following formula:
(Partnered property owner AVL + Partnered non-property owner AVL) / 2
Refer to Section 59J of the VEA [59] for the full definition.
The "extra allowable amount" is the difference between the property owner assets value limit and the non property owner assets value limit which applies to the person.
As the property and non property owner assets value limits are indexed or adjusted on an annual basis, the extra allowable amounts also increase annually.
The assets value limits applied to this formula are the limits applicable at the time the person made the entry contribution to enter the special residence.
Refer to Section 52N [59] of the VEA for the full definition.
An asset means any property, including property outside Australia.
The principal home has the meaning given by subsection 5LA(1) [59] of the VEA and subsection 5LA(2) [59] 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.
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16112%23comment-form
[2] https://clik.dva.gov.au/book/export/html/16112#tgt-cspol_part9_ftn239
[3] https://clik.dva.gov.au/%23
[4] https://clik.dva.gov.au/book/export/html/16112#tgt-cspol_part9_ftn240
[5] https://clik.dva.gov.au/book/export/html/16112#tgt-cspol_part9_ftn241
[6] https://clik.dva.gov.au/book/export/html/16112#tgt-cspol_part9_ftn242
[7] https://clik.dva.gov.au/book/export/html/16112#tgt-cspol_part9_ftn243
[8] https://clik.dva.gov.au/book/export/html/16112#tgt-cspol_part9_ftn244
[9] https://clik.dva.gov.au/book/export/html/16112#tgt-cspol_part9_ftn245
[10] https://clik.dva.gov.au/book/export/html/16112#tgt-cspol_part9_ftn246
[11] https://clik.dva.gov.au/book/export/html/16112#tgt-cspol_part9_ftn247
[12] https://clik.dva.gov.au/book/export/html/16112#tgt-cspol_part9_ftn248
[13] https://clik.dva.gov.au/book/export/html/16112#tgt-cspol_part9_ftn249
[14] https://clik.dva.gov.au/book/export/html/16112#tgt-cspol_part9_ftn250
[15] https://clik.dva.gov.au/book/export/html/16112#tgt-cspol_part9_ftn251
[16] https://clik.dva.gov.au/book/export/html/16112#tgt-cspol_part9_ftn252
[17] https://clik.dva.gov.au/book/export/html/16112#tgt-cspol_part9_ftn253
[18] https://clik.dva.gov.au/book/export/html/16112#tgt-cspol_part9_ftn254
[19] https://clik.dva.gov.au/book/export/html/16112#tgt-cspol_part9_ftn255
[20] https://clik.dva.gov.au/book/export/html/16112#tgt-cspol_part9_ftn256
[21] https://clik.dva.gov.au/book/export/html/16112#tgt-cspol_part9_ftn257
[22] https://clik.dva.gov.au/book/export/html/16112#tgt-cspol_part9_ftn258
[23] https://clik.dva.gov.au/book/export/html/16112#tgt-cspol_part9_ftn259
[24] https://clik.dva.gov.au/book/export/html/16112#tgt-cspol_part9_ftn260
[25] https://clik.dva.gov.au/book/export/html/16112#tgt-cspol_part9_ftn261
[26] https://clik.dva.gov.au/book/export/html/16112#tgt-cspol_part9_ftn262
[27] https://clik.dva.gov.au/legislation-library
[28] https://clik.dva.gov.au/book/export/html/16112#ref-cspol_part9_ftn239
[29] 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
[30] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/92-residential-situation/925-special-residence-assessment-rules/entry-contribution
[31] https://clik.dva.gov.au/book/export/html/16112#ref-cspol_part9_ftn240
[32] 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
[33] https://clik.dva.gov.au/book/export/html/16112#ref-cspol_part9_ftn241
[34] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/92-residential-situation/922-basic-principles-assessment/non-homeowners-basic-assessment-rules
[35] https://clik.dva.gov.au/book/export/html/16112#ref-cspol_part9_ftn242
[36] https://clik.dva.gov.au/compensation-and-support-policy-library/part-5-income-support-allowances-and-benefits/51-rent-assistance
[37] 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
[38] https://clik.dva.gov.au/book/export/html/16112#ref-cspol_part9_ftn243
[39] https://clik.dva.gov.au/service-eligibility-assistant-updates/all-determinations-order-date-signed-oldest-most-recent/determinations-under-vea
[40] https://clik.dva.gov.au/book/export/html/16112#ref-cspol_part9_ftn244
[41] https://clik.dva.gov.au/book/export/html/16112#ref-cspol_part9_ftn245
[42] https://clik.dva.gov.au/book/export/html/16112#ref-cspol_part9_ftn246
[43] https://clik.dva.gov.au/book/export/html/16112#ref-cspol_part9_ftn247
[44] https://clik.dva.gov.au/book/export/html/16112#ref-cspol_part9_ftn248
[45] https://clik.dva.gov.au/book/export/html/16112#ref-cspol_part9_ftn249
[46] https://clik.dva.gov.au/book/export/html/16112#ref-cspol_part9_ftn250
[47] https://clik.dva.gov.au/book/export/html/16112#ref-cspol_part9_ftn251
[48] https://clik.dva.gov.au/book/export/html/16112#ref-cspol_part9_ftn252
[49] https://clik.dva.gov.au/book/export/html/16112#ref-cspol_part9_ftn253
[50] https://clik.dva.gov.au/book/export/html/16112#ref-cspol_part9_ftn254
[51] https://clik.dva.gov.au/book/export/html/16112#ref-cspol_part9_ftn255
[52] https://clik.dva.gov.au/book/export/html/16112#ref-cspol_part9_ftn256
[53] https://clik.dva.gov.au/book/export/html/16112#ref-cspol_part9_ftn257
[54] https://clik.dva.gov.au/book/export/html/16112#ref-cspol_part9_ftn258
[55] https://clik.dva.gov.au/book/export/html/16112#ref-cspol_part9_ftn259
[56] https://clik.dva.gov.au/book/export/html/16112#ref-cspol_part9_ftn260
[57] https://clik.dva.gov.au/book/export/html/16112#ref-cspol_part9_ftn261
[58] https://clik.dva.gov.au/book/export/html/16112#ref-cspol_part9_ftn262
[59] http://clik.dva.gov.au/legislation-library
[60] http://clik.dva.gov.au/glossary/assets-value-limit-avl
[61] http://www.comlaw.gov.au/Series/C2004A03268