Asset Testing - Rest Homes
The Social Security (Long-term Residential Care) Amendment Act 2004 came into effect on 1 July 2005.
Since 1 July 2005, older people can retain more of their assets while still qualifying for a Government subsidy to help meet the costs in a rest home or continuing care hospital.
Single people and couples, both of whom are in care, will be able to keep $150,000 of assets (including property and savings) before they must start to contribute to the cost of their care.
From 1 July 2005, the applicable asset thresholds in the Act increased:
The level in each category will increase by $10,000 a year from 2006 until all asset testing is removed.
Does the income test still apply?
Yes. The Government considers that it is reasonable to expect older people to contribute towards expenses they would have to pay for in their own home.
Changes to income testing: