Prior to 1 October 1997, pensioners residing in nursing homes and hostels were assessed as homeowners, and the lower assets value limit applied, if:
In any other situation, nursing home and hostel residents were assessed as non-homeowners and the higher assets value limit applied.
The homeownership status of pensioners who entered a nursing home or hostel prior to 1 October 1997, was assessed according to the pre 1 October 1997 rules. More [4]
As hostel residents were assessed under the nursing home rules (home exempt for 2 years) or the hostel (entry contribution) rules depending on which is more beneficial, their homeownership status was assessed as per the rules applied.
From 1 October, pensioners who own their own home prior to entering aged care, will still have access to the rules whereby their former home can be an exempt asset for up to two years following vacation of the home (or until sold if this happens within two years). In these situations the lower homeowner asset value limit is applied. This treatment is a continuation of the pre 1 October 1997 nursing home rules.
Any other pensioner who enters aged care and pays an accommodation bond will be assessed as a non-homeowner, and the higher assets value limit will be applied. This treatment will apply irrespective of the amount the person has paid as an accommodation bond.
After 1 October, a few cases may arise where a person who entered aged care before 1 October, and is still assessed under the pre 1 October asset assessment rules, transfers to the new accommodation bond rules. More [7]
Where this happens, and the person's former home is being exempted as an asset for two years under the nursing home rules, the two year exemption will continue unaffected. The two year exemption is not restarted from the date the person transfers to the new rules, even if they have moved from one facility to another.
Links
[1] https://clik.dva.gov.au/user/login?destination=node/32646%23comment-form
[2] https://clik.dva.gov.au/user/login?destination=node/32661%23comment-form
[3] https://clik.dva.gov.au/user/login?destination=node/32504%23comment-form
[4] https://clik.dva.gov.au/csrefpopref2-9
[5] https://clik.dva.gov.au/user/login?destination=node/32575%23comment-form
[6] https://clik.dva.gov.au/user/login?destination=node/32561%23comment-form
[7] https://clik.dva.gov.au/csrefpopref2-23