Age Pension updates that affect home care and residential aged care costs

On 2nd July last some significant changes were made that affect aged pension income and asset limits.

A person can now earn $172 per fortnight and still retain a full pension, with no pension paid when fortnightly income reaches $1,987.20 or $51,667 per year (for a couple, the new limits are $304 per fortnight and no pension when income reaches $3,040.40 per fortnight).

The new assets test for a full pension are $258,500 for a single home owner and $387,500 for a couple ($465,500 for a single non-home owner and $594500 for a couple). The assets test upper limits at which a part-pension cannot be claimed are $561,250 for a single home owner and $844,000 for a couple ($768,250 and $1,051,000 for non-home owners).

For financial assets the amount deemed to earn the low 1.75% has been raised to $51,200 ($85,000 for couples).

For those going into residential aged care after 1 July 2018 the maximum permissible interest rate that can be charged on daily acommodation payments (DAPs) has risen to 5.96% (from 5.72% in the previous quarter). it was expensive before this increase, just more so now.

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