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Currently, investments which do not allow the holder to draw on the capital component (the principal amount) are exempt from the aged care assets test. These include complying income streams (i.e. income-producing investments which comply with certain requirements of the Social Security Act 1991 and the Veterans’ Entitlements Act 1986).
From 20 September 2007, the full amount of the purchase price for any “complying income stream” purchased on or after 20 September 2007 will be included in the assets assessment.
Complying income streams purchased before 20 September 2007 will continue to be fully exempt under the aged care assets test.
People who enter permanent residential aged care, or move to another aged care home, from 20 September 2007, and who have an aged care assets assessment, will be affected by this change.
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