From 1 January 2016, all new Residential Care recipients will have rental income from their former principal home included in the aged care means test.
This was previously only included in the test if you made lump sum accommodation payments and was not included if you made periodic accommodation payments or a combination of periodic and lump sum accommodation payments.
According to the Department of Human Services, 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.
For more information about aged care services please visit the My Aged Care website.
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Wahlstrom Financial Services Pty Ltd, ABN 43 078 015 988, is a Corporate Authorised Representative of Millennium3 Financial Services Pty Ltd ABN 61 094 529 987 an Australian Financial Services Licensee number 244252. Millennium3 Financial Services Pty Ltd and Wahlstrom Financial Services Pty Ltd are not responsible for the advice given regarding lending. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice and consider a Product Disclosure Statement. The views and opinions expressed within this letter are those of the author and do not necessarily reflect those of Millennium3 Financial Services Pty Ltd.