Assessment of entry contribution 065-11010010

Item

Questions and Answers

1

What costs are involved when moving to a retirement village?

The retirement village will request an entry contribution that may be a payment, loan or donation. The amount will vary depending on the village itself. Some may charge the equivalent of the price of the unit, while other villages will charge less.

Ongoing fees will be charged for maintenance and services. If the customer is assessed as a non-homeowner they may be eligible for Rent Assistance (RA).

2

Is the home exempt for 2 years when a customer moves into a retirement village?

No. If the customer still owns (including paying off) their principal home when they move into a retirement village the home is to be assessed as real estate as soon as they enter the village, unless their partner remains in the house or the customer enters a care situation.

Depending on the amount of the entry contribution paid the customer may be assessed as a homeowner or a non-homeowner and the applicable assets test applied.

3

Previous home is rented out

The rent received will count as income and will be assessed accordingly.

4

What are the extra allowable amounts?

The difference between the single homeowner allowable asset level and the single non-homeowner allowable asset level. This amount is indexed with asset test indexations.

The extra allowable amount applies to singles and each member of an illness separated couple.

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

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

For current and historical rates, see the table below.

Date valid from

Extra allowable amount

1 July 2024

$252,000

1 July 2023

$242,000

1 July 2022

$224,500

1 July 2021

$216,500

1 July 2020

$214,500

1 July 2019

$210,500

1 July 2018

$207,000

1 July 2017

$203,000

1 January 2017

$200,000

1 July 2016

$151,500

1 July 2015

$149,000

1 July 2014

$146,500

1 July 2013

$142,500

1 July 2012

$139,500

1 July 2011

$135,000

1 July 2010

$131,500

1 July 2009

$129,000

1 July 2008

$124,500

1 July 2007

$121,000

1 July 2006

$117,000

1 July 2005

$113,500

1 July 2004

$110,500

1 July 2003

$108,000

1 July 2002

$104,500

1 July 2001

$101,000

1 July 2000

$95,500

1 July 1999

$91,500

1 July 1998

$90,000

1 July 1997

$90,000

1 July 1996

$88,500

1 July 1995

$84,000

1 July 1994

$80,500

1 July 1993

$80,500

1 July 1992

$80,500

1 July 1991

$79,000

21 June 1990

$74,000

22 June 1989

$68,500

Item

Example

1

A customer is required to pay $250,000 to acquire a right to reside in a retirement village

Their child pays this amount on their behalf.

As the contract is between the customer and the retirement village, the customer's entry contribution is $250,000. The amount paid by the child does not reduce the entry contribution payable by the customer when determining the homeownership status of the customer.

If the contract was between the retirement village and the child or the retirement village and the child and the customer, contact the Retirement Service Desk for assistance.