Aged care means assessment - residential care pre 1 July 2014 - assets assessment 065-19042305

An assets assessment for aged care purposes is:

• the net value of a person's assets either on or before the date the customer enters permanent residential aged care

Changes in the value of the customer's assets after they enter care are not relevant to an assessment made for that admission to care.

Since 1 July 2005, Services Australia and the Department of Veterans' Affairs (DVA) have been undertaking asset assessments. Prior to that date, service providers were responsible for assessing the assets of their care recipients.

Applying for an assets assessment is voluntary. However it is compulsory where the care recipient wishes to claim either concessional, assisted, or supported resident status. Assessment of care can be completed either prior to or after entry into care.

Only the care recipient (and nominee where applicable) are notified of the result of an assets assessment. As the service provider does not receive notification, the care recipient may elect to show the notification letter to the service providers.

A care recipient’s resident status is determined by the assets assessment in conjunction with:

• care needs, plus
• additional criteria for pre 2008 reform care recipients

If on the day they enter residential care, a care recipient:

• has assets above the minimum assets amount, or
• does not complete a Calculation of your cost of care they would pay an:
• Accommodation Charge (for High Level Care), or
• Accommodation Bond (for Low Level Care or Extra Service Facility)

Care recipients with net assessed assets:

• equal to, or
• less than the relevant minimum permissible asset amount are not required to pay either an accommodation bond or an accommodation charge

An accommodation supplement is paid at the maximum rate for care recipients who are not required to pay an accommodation bond or accommodation charge. Where the care recipient is liable for an accommodation charge the amount of supplement is reduced. Accommodation Supplements are for care recipients that have low care classifications and are liable to pay an accommodation bond. The provider has a monthly retention amount from the bond.

The following applies to an assets assessment:

• The assessment is based on the value of assessable assets on or before the date of entry to care. Unlike post 1 July 2014 assessment schemes, the accommodation charge does not change. This irrespective of any change in asset value after entry date
• The value of the principal home is included in the assets assessment (unless a protected person exemption exists). However the value is not capped
• The assessable asset amount is reduced by allowable asset reductions. This includes mortgages (even when home was exempt), credit cards, utility bills, outstanding loans and any other outstanding liabilities

The results of an assets assessment are displayed on the Customer First RCAA Assessment Determination (RCAD) screen.

Information about when a form is required for an assets assessment is on the Background page of Aged Care means assessment.

An assets assessment may be requested for a deceased or discharged care recipient when a care recipient:

• was originally assessed as low care and the service provider did not negotiate an accommodation bond (as assets were below the threshold)
• the provider was not paid accommodation supplements as there was no assets assessment
• completing an assets assessment will result in the payment of any accommodation supplements that may be due to the provider
• was originally assessed as high care and no accommodation costs were charged (as assets were below the threshold). It is then found that they have been paying an accommodation charge at the maximum rate as there was no assets assessment completed
• completing an assets assessment will adjust supplements paid to the provider if it determined that assets were below the threshold. If applicable the service provider will then refund any overpaid accommodation charge to the care recipient
• has a completed assessment effective from date of entry that requires correction to adjust accommodation charges paid by them

See the Department of Health and Aged Care - Schedule of Fees and Charges for Residential and Home Care for historical asset thresholds.

This can be a care recipient, or where a care recipient is not deceased, an authorised third party can apply on their behalf if:

• they are their payment or correspondence nominee (as per the Nominee Link Summary (NOLS) screen). Or they have a power of attorney or other guardianship type authority in relation to the care recipient
• the care recipient is unable to sign the application form. In this case a letter from a doctor, hospital or social worker stating that the care recipient is unable to sign is sufficient authority
• they are the Director of Nursing for the service provider and they provide a letter from a doctor stating that the care recipient is unable to sign the application form

Where a care recipient is deceased, only the administrator or executor of the estate can apply for an assets assessment. Confirmation that the applicant is the administrator or executor of the deceased person's estate is required.

A care recipient is referred to as ‘pre 2008’ when they:

• first entered Permanent Residential Care on or after 1 July 2005 but before 20 March 2008 (including pre-entry leave), and
• have not subsequently been discharged from care for a continuous period of 28 days or more

A pre 2008 reform care recipient’s resident status is:

• concessional
• assisted, or
• neither concessional nor assisted

The care recipient’s status determined by:

• the net value of their assets
• their income support payment status, and
• their home ownership status as defined under the Aged Care (Transitional Provisions) Act 1997

Concessional resident status

A concessional resident is a pre-2008 reform resident who:

• at the relevant time was in receipt of an Australian income support payment, and
• was considered not to have owned a home in the past 2 years under the Aged Care (Transitional Provisions) Act 1997, and
• had net assessable assets equal to or less than the minimum permissible asset amount

Concessional residents do not pay accommodation bonds or accommodation charges.

Since 20 March 2008, concessional residents have been able to transfer their concessional resident status from 1 service provider to another without a new assets assessment if:

• they enter the second service within 28 days of being discharged from the first service, and
• their concessional status in the first aged care service had been determined by Services Australia or Department of Veterans' Affairs (DVA)

If their concessional resident status in the first service had been determined by the service provider:

• they will need to lodge a new application for an assets assessment if they want to claim concessional resident status in the second service

Assisted resident status

An assisted resident is a pre-2008 reform resident who:

• at the relevant time was in receipt of an Australian income support payment, and
• was considered not to have owned a home in the past 2 years under the Aged Care (Transitional Provisions) Act 1997, and
• from 20 September 2009 had net assessable assets over the minimum permissible asset amount,
• but less than 3.61 times the single annual rate of basic Age Pension rounded to the nearest $500
• prior to 20 September 2009 the assisted resident upper asset limit was calculated as 4 times the single annual rate of basic Age Pension

Since 20 March 2008, assisted residents are able to transfer their assisted resident status to a new service provider without a new assets assessment if:

• they enter the second service within 28 days of discharge from the first service, and
• their assisted status in the first aged care service had been determined by Services Australia or Department of Veterans' Affairs (DVA)

If their assisted resident status in the first service had been determined by the service provider (for example, pre 1 July 2005):

• they need to lodge a new application for an assets assessment to claim assisted resident status in the second service

Neither concessional nor assisted resident status

A pre 2008 reform resident is determined to be neither concessional nor assisted where their assets have been assessed as above the asset cut off limit.

The care recipient is liable to pay the full cost of accommodation in residential care.

A care recipient is referred to as ‘post 2008’ when they first entered Permanent Residential Care on or after 20 March 2008, but prior to 1 July 2014 (including pre-entry leave).

An assets assessment will determine the resident status for a post 2008 reform care recipient. The resident status will be 1 of the following:

• fully supported
• partially supported
• not supported

Post 2008 reform care recipients do not need to have been in receipt of income support payment or to have been considered a non-homeowner under the Aged Care (Transitional Provisions) Act 1997 in order to be a supported resident.

Fully supported resident status

A fully supported resident is a post 2008 reform resident who at the relevant time had net assessable assets equal to or less than the minimum permissible asset amount which from 20 September 2009 is calculated as 2.25 times the single annual rate of basic Age Pension rounded to the nearest $500.

Partially supported resident status

A partially supported resident is a post 2008 reform resident who had net assessable assets between the minimum permissible asset amount and the supported resident cut-off amount that applied on the date they entered care.

Not supported resident status

A not supported resident is a post 2008 reform resident who at the relevant time had net assessable assets equal to or more than the partially supported resident cut off amount.

Care recipients transferring from low level care to high level care with a new service provider

When a care recipient transfers from low level care to high level care, they may do 1 of the following with regards to their accommodation bond:

• transfer the balance of their accommodation bond from 1 service provider to another service provider (also known as ‘rolling over’)
• have their accommodation bond refunded and request a new assets assessment from their new date of entry (to determine their new accommodation charge)

Care recipients who have paid a lump sum accommodation bond:

• for low level care in 1 service, and
• who are subsequently admitted for high level care in a second service within 28 days of leaving the first service can:
• if the service provider agrees, transfer the balance of their accommodation bond from the first service to the second

Care recipients transferring from low level care to low level care with a new service provider

Care recipients who leave a provider will have their bond balance refunded. The new provider can only charge the amount of the bond that has been refunded.

An assets assessment is not able to be completed where the balance of an accommodation bond is being transferred to a new service.