The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

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: