Changes to the Residential Aged Care Means Test

From 1 January 2016, all new Residential Care recipients will now have rental income from their former principal home included in their aged care means test.

Previously, rental income from your former principal home was only included in the test if you made lump sum accommodation payments. It was not included if you made periodic accommodation payments or a combination of periodic and lump sum accommodation payments.

The new rule won’t affect you if you entered care before 1 January 2016. This includes if you:

• took social or hospital leave before 1 January 2016 and re-enter care after 1 January 2016, or
• started pre-entry leave, making arrangements to enter an aged care service or transfer from one service to another, before 1 January 2016 and enter care after 1 January 2016

After 1 January 2016, if you are formally discharged from Residential Care for more than 28 days, rental income from your former principal home will be included in the aged care means test when you re-enter care.

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