Supported Residential Services (SRS) 065-11020000

SRSs operate privately in New South Wales, Victoria, Queensland and South Australia. They offer supported accommodation to older people and people with a disability.

They differ from Residential Aged Care because an Aged Care Assessment Team (ACAT) assessment is not required to enter a SRS and a SRS does not receive funding from the Department of Social Services. They also differ from retirement villages as they are not regulated under state retirement village legislation.

In some cases the SRS will provide care services for some of their residents. In these situations the customer's assessment will depend upon the level of care provided by the SRS and whether the customer has paid a lump sum as a condition of entry.

In situations where a customer needs and is likely to receive a substantial level of care in the SRS for at least 14 consecutive days, the customer may be considered to be in a care situation for social security Assets Test and Rent Assistance (RA) purposes. The customer meets the definition of a care situation for the purposes of section 13(9) of the Social Security Act 1991, as the SRS is considered to be a 'private residence'.

If the customer owns their home, and vacates it to permanently enter a care situation in an SRS, the former home will be exempt from the Assets Test for 2 years from the date the customer first enters the care situation in accordance with sections 11A (9) of the Social Security Act 1991. RA will also be payable in these situations because the customer is not an ineligible homeowner as set out in section 13 of the Social Security Act 1991.

Where the customer does not need or is not likely to receive a substantial level of care for at least 14 consecutive days, the customer is not considered to be in a care situation for social security purposes as they do not meet the definition of a care situation set out in section 13(9) of the Social Security Act 1991.

The provisions for exemption of the former principal home from the social security Assets Test set out in sections 11A(8) and (9) of the Social Security Act 1991 do not apply to customers who move into an SRS and do not need or are not likely to receive a substantial level of care.

If the customer permanently enters an SRS without selling their former home, it will be assessed as an asset. The customer is considered a non-homeowner and Rent Assistance (RA) may be payable.

A customer who vacates their principal home to enter an SRS and advises that vacation is temporary will be assessed as per the temporary vacation of principal home provisions.

A lump sum payment made by a customer to an SRS is not an accommodation bond because an SRS is not an accredited aged care home for the purposes of the Aged Care Act 1997. Customers living in them are not considered to be aged care residents for the purposes of section 13(8A) of the Social Security Act 1991.

Although an SRS may require payment of a lump sum by residents, the SRS is not generally assessed as a retirement village. However, in some situations Services Australia can decide that the residential premises have similar functions to a retirement village and are to be treated as if they were a retirement village.

In the case where the customer is partnered and they or their partner is subsequently admitted to an Aged Care Facility, the Resources page of Rent Assistance (RA) for care receivers has scenarios for an illness separated couple. This means that a customer who is a resident of an SRS may apply on an individual basis to have their accommodation assessed as a special residence in the same way as a retirement village.

If a customer advises that they have moved into an SRS that requires them to make a lump sum payment as a condition of entry, and they have requested it be treated under retirement village conditions, Service Officers should contact the Level 2 Retirements Policy Helpdesk to see if the SRS can be treated in the same way as a retirement village.

If the customer needs and is likely to receive a substantial level of care for at least 14 consecutive days and the Level 2 Retirements Policy Helpdesk advises that the SRS is to be treated as a special residence:

• Compare the lump sum payment to the Extra Allowable Amount (EAA). If the lump sum is more than the EAA the customer is a homeowner and not eligible for RA. The lump sum will not be assessed as an asset. If the customer has retained ownership of the former principal home, it is an exempt asset for 2 years from the date the customer entered the SRS
• If the lump sum is less than the EAA, the customer is a non-homeowner and will be eligible for RA. The lump sum payment is assessed as an asset, but is not considered a financial asset, that is, deeming does not apply. If the customer has retained ownership of the former principal home, it is an exempt asset for 2 years, from the date the customer entered the SRS
• If the SRS is not to be treated as a special residence, the EAA rule does not apply and the customer is a non-homeowner and will be eligible for RA. The lump sum payment is assessed as an asset, but is not considered a financial asset. If the customer has retained ownership of the former principal home, it is an exempt asset for 2 years from the date the customer entered the SRS

If the customer does not need and is not likely to receive a substantial level of care for at least 14 consecutive days and the Level 2 Retirements Policy Helpdesk advises that the SRS:

• Is to be treated as a special residence, compare the lump sum payment to the EAA. If the lump sum is more than the EAA the customer is a homeowner and is not eligible for RA. The lump sum payment is not assessed as an asset. If the customer has retained ownership of the former principal home, it is assessed as an asset
• If the lump sum is less than the EAA, then the customer is a non-homeowner and eligible for RA. The lump sum payment is assessed as an asset, but it is not considered a financial asset, that is, deeming does not apply. If the customer has retained ownership of the former principal home it is assessed as an asset
• Is not to be treated as a special residence, the EAA rule does not apply and the customer is a non-homeowner and eligible for RA. The lump sum payment is assessed as an asset, but it is not considered a financial asset. If the customer has retained ownership of the former principal home it will be assessed as an asset