How is my home assessed if I enter an Aged Care facility?

The treatment of your former home varies depending on when you first entered residential aged care. 

This fact sheet assumes entry to care after 1 January 2017

How is my home assessed if I enter an Aged Care facility?

Your former home is assessed differently when being assessed for Age Pension (Centrelink) vs Aged Care Fee (Department of Human Services) purposes and it is essential to consider the home assessment in both instances. 

How is my home assessed for Age Pension purposes?

Your principal residence is not assessed as an asset for Age Pension purposes. So, if your house is worth $500,000 or $5 million, it does not impact your Age Pension entitlement. 

How is my home assessed for Aged Care (Means Tested Fee) purposes?

Your former home is assessed at a capped value of $171,535.250 regardless of its market value. 

Can I sell my home?

Yes, however, the proceeds from the sale will usually go into a bank account or investments and are then fully assessable for Age Pension and Aged Care Fee purposes. This means your Age Pension could reduce or cease altogether, and you may pay a significantly higher Means Tested Fee to your Aged Care facility. 

What if I don’t want to sell my home?

You don’t have to – but there are implications to consider:

Can I leave it vacant?

Yes, but it is important to review your home and contents insurance to make sure the home remains insured if it is not occupied. You also need to consider maintenance costs such as upkeep and rates. 

Can I rent it?

Yes, but the rental income you receive is assessable for Age Pension and Aged Care Fee purposes and will have implications. 

Our team of Aged Care specialists are here to help

Navigating Aged Care yourself or assisting a loved one can be an emotionally charged, overwhelming & complex time so it is important to find the right person to guide you through the process. 

To ensure you are equipped with an understanding of what to look for, get in touch with the Rethink Aged Care team for our personalised service to assist you in determining your care needs. Contact us on 4962 4440.

Figures are current at the time of writing & are subject to legislative change.