Status of principle place of residence for aged pension when in aged care home

General
1

Hello,
Friends have recommended this site as having good information for all things aged care, so I am hoping you may be able to assist clarify the following.

My grandmother entered an aged care nursing home just over 1 year ago (approx Feb 2019). Prior to this she lived in her own home and she received the full aged pension. Her home has not been sold and it is not rented out.

To enter the nursing home she paid the refundable deposit and now she is paying the 85% of her pension plus a small additional daily amount.

Recently through discussion with friends I heard that after 2 years in a nursing home, the status of my grandmothers house may be considered differently for eligibility for the aged pension, as it may then be considered an asset and reduce her pension.
Could you please assist me in clarifying - does the status of her home change after being in a nursing home for the purposes of receiving the aged pension and does this then also impact the ongoing amount that she is paying to the nursing home?

Thank you greatly for any information you have on this.
Kind regards
PMB

2

Hi PMB,
You are correct that if a person is single and the family home is not rented, the value of the home will remain exempt from the age pension assets test for up to two years after a person enters aged care. During this exemption period, you will continue to be treated as a homeowner. Once the exemption period has ended, you will be treated as a non-homeowner and the house will become an assessable asset. Depending on the value of your grandmother’s home, this may have an impact on her age pension.

For more information you can call the Department of Human Services on 132 300. They also have an Income and Assets division that you can call on 1800 227 475It may also be worthwhile getting specialist aged care financial advice as to whether it is financially beneficial in your grandmothers circumstances to rent out the family home.