4.6.4.20 Hostels or Low Care Facilities Assessed before 01/10/1997

Summary

Before 1 October 1997, a person who entered a low care facility, then known as a 'hostel' (1.1.H.90) that received recurrent funding under Commonwealth programs was assessed using EITHER:

Explanation: A person could satisfy the criteria for both provisions BUT the provisions were mutually exclusive. Therefore ONLY one set of provisions could be applied.

A person was assessed using whichever provision gave them the higher pension rate.

Explanation: Care situation and special residence provisions had different effects on a person's pension entitlement.

The following table shows how the provisions were compared:

Criteria Care situation provisions Special residence provisions
Exemption status of former principal home.

Exempt for 2 years.

Explanation: Under the provisions, a person's principal home is NOT the low care facility (hostel).

Not exempt.

Explanation: Under the provisions, a person's principal home is the low care facility (hostel).

Deeming of a person's EC (1.1.E.130).

Deeming applied IF the EC took the form of a:

  • loan, OR
  • donation, OR
  • combination of a loan and donation.
Deeming not applied.
Payability of RA. RA was payable.

RA was assessed as for a retirement village.

4.6.4.30 Assessing Retirement Villages

Assessability of EC.

EC was an assessable asset (1.1.A.290).

Explanation: There were no special provisions for a person's EC.

The EC was assessed as for a retirement village.

4.6.4.30 Assessing Retirement Villages

Act reference: SSAct section 13(1)-'ineligible homeowner', section 11A(1) Principal home

National Health Act 1953

Policy reference: SS Guide 4.6.3.70 Exempting the Principal Home - Care Situations, 4.6.4.10 General Provisions for Special Residences, 4.6.4.30 Assessing Retirement Villages

Last reviewed: 9 November 2015