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Assets assessments
Centrelink (more information) and the Department of Veterans’ Affairs (DVA) undertake assets testing for people who will be entering permanent residential aged care (an aged care home) or who have recently entered care.
You do not need to have an assets assessment if you are going into respite care (more information).
It is not compulsory for you to have an assessment if you do not wish to test whether you are eligible to be a supported resident. However, you are able to choose to have an assessment to help you to negotiate an accommodation bond (more information) or accommodation charge (more information) amount with an aged care home.
If you choose not to have an assets assessment, the home may ask you to pay the maximum rate of accommodation charge or any amount of accommodation bond that would leave you with no less than 2.25 times the annual single basic age pension.
Centrelink completes assessments for people who receive a means tested pension from Centrelink. The DVA completes assessments for veterans, war widows and widowers and their partners who receive a means tested pension from DVA. Assessments for people who do not receive a means tested pension from Centrelink or the DVA are done by Centrelink.
The Information Booklet that accompanies the assets assessment form will help you to work out whether or not you should apply for an assets assessment.
How to arrange an assets assessment
If you wish to have an assets assessment you need to complete a Request for an Assets Assessment form. You will be given one of these forms, as part of the 5 Steps to Entry into Residential Aged Care pack, by the Aged Care Assessment Team (ACAT or ACAS in Victoria) (more information) when you’re being assessed for entry into an aged care home. If you do not receive a form from an ACAT or ACAS, you can download one from the Department of Health and Ageing website or by calling the Aged Care Information Line on 1800 500 853.Once you’ve completed this form you need to post it to Centrelink’s Processing Centre, or to the DVA office in your capital city. The addresses for Centrelink’s Processing Centre and the DVA state offices are on the back page of the request form.
If you have not already entered an aged care home, your assets assessment will be based on your assets situation at the time the assessment is being undertaken. If you entered an aged care home before your assets assessment, the assessment will be based on your assets situation on the date you entered the home.
The time it will take for your assessment to be completed will depend on the type of assets you hold. You should make sure that:
- all the parts of the form you need to complete are properly filled in
- the form is signed, and
- all the required supporting documents are enclosed.
When your assets assessment is completed you will be informed in writing whether or not you are eligible to be a supported resident for your accommodation costs.
This advice will also include an itemised list of your assets and an indication of how long this assessment will be current.
You will also be given a separate document that contains your resident status (for example, supported or not supported) and how long the assessment will be current. If you wish to enter a home as a supported resident, you will need to pass this advice on to the aged care home. If you are assessed as ineligible to be a supported resident, you are able to choose whether or not to pass this separate advice on to the aged care home.
Gifted assets and income streams
Gifted assets
Any amount of assets given away over $10,000 in a single financial year, or $30,000 in a five-financial year period, will be included in the aged care assets assessment. Note that gifts made from 10 May 2006 are assessable.The treatment of gifts under the pension assets test, in respect of a person receiving a service pension or an income support supplement through the Department of Veterans’ Affairs (DVA), is set out under Subdivisions B and BB of Division 11 of Part IIIB of the Veterans’ Entitlements Act 1986.
The treatment of gifts under the pension assets test, for all applicants other than those receiving a service pension or an income support supplement through DVA, is set out under Division 2 – Disposal of assets, under Part 3.12 of the Social Security Act 1991.
Income streams
(more information)The full amount of the purchase price for any income stream purchased on or after 20 September 2007 will be included in the aged care assets assessment.Income streams purchased before 20 September 2007 are exempt under the aged care assets test (where a lump sum amount can not be withdrawn, the assessment will be conducted in the same way as they are for social security purposes).
The treatment of income streams under the pension assets test, in respect of a person receiving a service pension or an income support supplement through the Department of Veterans’ Affairs (DVA), is set out under Subdivisions A of Division 11 of Part IIIB of the Veterans’ Entitlements Act 1986.
The treatment of income streams under the pension assets test, for all applicants other than those receiving a service pension or an income support supplement through DVA, is set out under Division 2 – Value of person’s assets, under Part 3.12 of the Social Security Act 1991.
For information about the treatment of gifts and income streams under the pension assets test you may wish to call:
Centrelink on 13 23 00
or
Department of Veterans’ Affairs on 13 32 54