From 1 January 2017 there will be changes to the way the aged pension is calculated and these changes may affect ongoing aged care fees. Specifically, the value of assets that an individual can have before their entitlements are lost and their pension is reduced is increasing to the following:
- $250,000 for single home owners
- $375,000 for a couple owning a home
- $450,000 for a single non-home owner
- $575,000 for a couple without a home
Pension entitlements will be reduced by $3 every fortnight for every $1,000 of excessive assets.
All income support recipients who lose their payment entitlement on 1 January 2017 as a result of the changes will automatically get a Health Care Card. Those over age pension age will also get a Commonwealth Seniors Health Card. These cards will be exempt indefinitely from the usual income test requirements.
For further details, please visit: https://www.humanservices.gov.au/corporate/budget/