| Each individual situation may have a different strategy that help to reduce the means tested fees. We have summarised the different situations and the strategy that may assist. |
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| If your situation is: | Strategies that may help: (click the link below to read) |
| Paying ongoing means tested fee | Purchasing a funeral bond Purchasing a pre-paid funeral or burial plot Gifting within allowable limits |
| Paying an accommodation contribution | Purchasing a funeral bond |
| Social security entitlements are reduced under either the assets or icome test |
Purchasing a funeral bond |
| Having sufficient funds to pay lump sum accommodation payment without selling former home |
Retain and rent former home Retain former home and leave vacant |
| Having a former home that has a high market value | Retain and rent former home Retain former home and leave vacant Retain former home for two years, then sell |
| Persons with a former home that will generate sufficient rental income to assist with aged care expenses |
Retain and rent former home Retain former home for two years, then sell |
| Persons who qualify for the exemptions as they entered aged care pre 1 January 2017 (or 1 January 2016) and paid DAP/DA |
Retain and rent former home |
| Persons who moved into aged care within previous two years (asset value of home exempt for social security purpose |
Retain and rent former home Retain former home and leave vacant |
| Persons who want to retain their former home | Retain former home and leave vacant |
| Persons with sufficient income to meet aged care expenses without renting former home |
Retain former home and leave vacant |
| Persons with a short life expectancy | Retain former home and leave vacant |
| Persons who will receive a reduced or cancelled age pension when the former home becomes assessable two years after entering aged care |
Retain former home for two years, then sell |
| Persons who do not have sufficient funds to pay lump sum accommodation payment without selling former home |
Sell former home |
| Persons with a former home that has a relatively low market value |
Sell former home |
| Persons with a former home that will not generate sufficient rental income to meet aged care expenses |
Sell former home |
| Persons with a former home that is not able to be rented without substantial repairs/renovations |
Sell former home |
| Persons residing in aged care who are under age pension age |
Contribute or rollover income streams to accumulation phase if under age pension age |
| Persons residing in aged care who have a younger spouse under age pension age |
Contribute funds into spouse’s superannuation fund if under age pension age |
| Persons receiving a social security payment and residing in aged care, who have a grandfathered account based pension |
Drawing the minimum pension payments from a grandfathered account based pension |
| Persons who have a grandfathered account based pension where the assessable income from the pension exceeds the deemed income on an equivalent amount. |
Switch grandfathering off by commuting and rolling over grandfathered account based pensions to apply deeming |
| Persons who are liable to pay an accommodation payment for aged care |
Pay accommodation payment as a Refundable Accommodation Deposit (RAD) |
| Persons receiving a social security/DVA means tested payment |
Pay accommodation payment as a Refundable Accommodation Deposit (RAD) |
| Persons who do not have sufficient cashflow to meet aged care expenses |
Drawing down DAP from RAD |
| Persons who have a means tested amount just under the threshold (currently $56.14 per day) |
Qualifying as a low means resident |
| Persons who do not have the capped value of a former homeincluded in their means tested amount assessment |
Qualifying as a low means resident |
| Persons who are low means residents and can afford to pay a lump sum RAC |
Pay accommodation contribution as a Refundable Accommodation Contribution (RAC) |
| Persons with insufficient funds to pay RAD | Loan from family member to fund RAD |
| Persons who have family members that want them to enter a facility that charges a higher RAD |
Loan from family member to fund RAD |
| Persons who are the second spouse of a person entering aged care and want to retain the former home |
Loan from family member to fund RAD |
| Persons who are not permitted to pay the full accommodation payment as a RAD due to the minimum permissible asset requirement |
Paying an additional RAD after 28 days |
| Couples who enter aged care at the same time | Timing entry when couples enter care |
| Persons who are impacted by the income test for social security purposes |
Insurance bond in a trust |
| Persons with sufficient funds to invest in an insurance bond in a trust |
Insurance bond in a trust |
| Persons with funds available to invest after paying ccommodation payment |
Purchase long term annuity |
| Persons who require a regular cashflow to assist with meeting aged care expenses |
Purchase long term annuity |
| Persons who do not need to make voluntary commutations from the annuity |
Purchase long term annuity |
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