Assessment of entry contribution 065-11010010

Is the customer advising they have paid an entry contribution and is moving:

• into a retirement village, go to Step 2
• out of a retirement village, see Step 2 in Table 2

To assess the effect of the entry contribution on the customer's homeowner status and eligibility for Rent Assistance (RA), assess:

• the amount of the entry contribution. Ask the customer to provide the contract or agreement between them and the retirement village which shows the amount of the entry contribution
• the customer's marital status. If partnered, is the partner with them or are they an illness separated couple

If the customer moved to the retirement village:

• prior to 13 June 1989, go to Step 4
• on or after 13 June 1989, go to Step 5

The resident's extra allowable amount is $64,000 for:

• a member of a couple
• a member of an illness separated couple
• a single resident

Did the customer pay more than the applicable figure listed above?

• Yes, go to Step 6
• No, go to Step 7

The extra allowable amount is the difference between the single homeowner and single non-homeowner lower assets value limit applicable at the time the resident was eligible to pay the entry contribution.

For illness-separated couples, the entry contribution is the resident's individual entry contribution and the extra allowable amount applies to each.

For couples who are not illness separated, the extra allowable amount is half each.

A customer is considered illness separated if one or both partners live in a retirement village and they receive a substantial level of care from the retirement village service provider.

See the Resources page for current and historical extra allowable amounts.

For assets value limits information, see:

• Assets test for single pension customers
• Assets test for partnered pension customers

Note: the lower assets value limit is the same across all income support payments that are assets tested.

Is the entry contribution more than the extra allowable amount?

• Yes, go to Step 6
• No, go to Step 7

Customers who have paid more than the difference between the non-homeowner and homeowner assets limits to gain entry to a retirement village:

• will be treated as special residence homeowners (SRH) under the assets test
• the amount of their entry contribution will be an exempt asset, and
• they will not be eligible for Rent Assistance (RA)

See Step 1 in Table 2.

Customers who have paid equal to or less than the extra allowable amount to purchase the right to reside in a retirement village:

• Will be treated as non-homeowners and recoded with the code SRN - Non homeowner Lives in Special Residence
• The amount of their entry contribution will be an assessable asset recorded on the Other Asset (OAS) screen. Note: for members of a couple 50% of the entry contribution is coded on each party's record. This is not subject to deeming
• May qualify for RA in respect of the ongoing service or maintenance fees charged by the organisation. Maintenance and service fee verification is not needed for retirement village residents
• A customer may not pay an entry contribution. When this occurs the customer may be asked to pay rent in addition to the maintenance fees. Rent Assistance (RA) is payable on the combined amount

If, as per the contract, the retirement village deducts a fixed amount over time from the entry contribution and the customer is being paid under the assets test after the Entry Contribution is coded:

• record the terms and details of the amounts to be deducted in a DOC, and
• in Customer First, create a manual review on the Review Registration (RVR) screen and complete the fields as follows:
• Service Reason: customer's payment type
• Review Reason: select most appropriate reason
• Due Date: appropriate period as per retirement village contract
• Source: INT
• Date of Receipt: today's date
• Notes: 'Reduce the value of the Entry Contribution coded on OAS as per DOC xx/xx/xxxx. See OB 065-11010010.'
• Keywords: OASSLUMP
• Workgroup: leave blank
• Position: leave blank
• Transfer to Region: leave blank
• the review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action

The References page contains a link to the Guide.

Has the customer moved into their new retirement village address and provided the contract / agreement showing entry contribution details?

Yes:

• Record change of address using the Change in Contact Details workflow
• Ask if the customer would like to nominate a person to act on their behalf
• If the customer owned their previous home, what has become of it?
• Changes in investments or assets. Assets may need updating. Assessment will depend on how much entry contribution they have paid, from where they got the funds and if they have any left
• When the contract or agreement is available verify that details on the Accommodation (AC) screen reflect the customer's home ownership status. Code home ownership as:
• SRH - Lives in a Special Residence when entry contribution is more than the extra allowable amount, or
• SRN - Non homeowner Lives in Special Residence (Special Residence Non-homeowner) when entry contribution is equal to or less than the extra allowable amount

No:

• Record the customer's new address as a postal address
• If the contract or agreement has not been supplied, use the Request for Information (RFI) letter to request the customer's complete contract or agreement with the retirement village
• Ask if the customer would like to nominate a person to act on their behalf
• If the customer owned their previous home, what has become of it?
• Changes in investments or assets. Assets may need updating. Assessment will depend on how much entry contribution they have paid, from where they got the funds and if they have any left

Go to Step 3.

This procedure does not cover temporary vacation of principal home.

A customer may or may not receive an entry contribution refund if they move out of a retirement village. This will depend on their original contract.

Update the customer's record as required:

• Request details of any refund of the entry contribution, and what they have done with the money. For example, put into a bank account
• Complete updates on the Residential Care Assess Assessment (RCAA) screen:
• Date of Effect: Settlement date for the sale of the home
• Date of Entry into care: delete previous from this field as coding a duplicate date of entry will delete previous data
• Home Ownership Status: NHO - customer/partner do not own a home
• Remove coding from all other fields on the screen
• Action: 'I' to insert a new page for the update, original date of entry coding will be retained
• Key AR in Next field and press [Enter]
• Select Save and exit
• From AL screen select started activity
• Check the result on the MTA Assessment Determination (RCAD) screen
• If all information not shown, navigate to the Benefit Actions (BA) screen and complete a Reassessment (RCA REA) from date of effect
• If all data is correct following the RCA REA, finalise the activity
• If they have transferred a refundable entry contribution from the retirement village to an aged care home as an accommodation bond or refundable accommodation deposit:
• code the bond details on EXIA and update OAS as appropriate
• if the customer has moved to residential care more coding may be needed, see Change of address to an aged care home
• Record change of address and update the AC screen with the new details:
• If the customer has moved into an aged care home, see Change of address to an aged care home
• If not an aged care home, see Updating address details
• If the customer has moved to real estate owned by them that is assessed as an asset on the Real Estate (RE) screen, this must be ceased. See Assessment and sale of real estate and timeshare asset

Check the Other Assets Summary (OASS) screen to see if an entry contribution is being assessed. If it is, select it to navigate to the OAS screen

• In the Event Date: field, key date of refund or date of move if there is no entitlement to a refund
• In the Total Asset $: field, update value as detailed below:
• If the customer has not received a refund but expects to later, for example, when unit has been sold, do not remove the asset value of the entry contribution until the refund is received
• If the customer has vacated the retirement village and an assessable amount has already been coded on the OAS screen, that amount can be updated to reflect the net refundable amount
• If no assessable amount has been coded on the OAS screen yet because the Entry Contribution was exempt, the net refundable amount should now be recorded on the OAS screen if not yet received as it is no longer exempt if the customer has a new principal place of residence
• Complete Source: and DOR:

If the customer has not received a refund, check the contract for the previous retirement village. If the terminology indicates a loan has been created between the customer and the retirement village, the deeming provisions would apply on the balance due to the customer. See Loans. If not, then deeming would not apply.

• Update any changes in investments or assets. When a refund is received:
• at the time the customer moved, to ensure correct assessment the date of change in investments or assets must have the same Event Date of any entry contribution being ceased from assessment. Otherwise the customer may receive incorrect arrears or an incorrect debt may be identified
• at a later time, if the entry contribution refund has not been received as yet, update any other changes valid now. A reassessment will be needed at a later stage from the date the refund is received
• Identify if the customer would like to nominate a person to act on their behalf
• Update any other changes as required

Has the customer entered a care situation and still owns the former principal home?

• Yes, the former home may be exempt from the assets test for 2 years from the date the customer first entered the care situation. See Vacation of principal home due to illness. Record details and actions taken on a DOC
• No, finalise the activity on the Assessment Result (AR) screen. Record details and actions taken on a DOC