Will my mother lose her pension living in a nursing home?

Barbara’s mother has been living in a nursing home for six months and is worried about the new assessment.

Will my mother lose her pension living in a nursing home?

Barbara’s mother has been living in a nursing home for six months and is worried about the new assessment.

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Q. Barbara
My mother is in a nursing home, and has been there for 18 months. She is 95. I live in her house; my daughter lives there as well with her children. I have power of attorney. Before moving into the nursing home, my mother had lived in the house for 16 years. It is her only asset. Can Centrelink take her pension when she has been in the nursing home for two years?

A. You are correct that after two years in care, Centrelink will count her former home as an asset and her pension may be reduced as a result.

After two years, you mother will be assessed as a non-homeowner and the full price of her former home will be assessed as an asset.

Based on the current asset test limits, if the home is worth more than $473,750 but under $782,500 she will still receive a part pension. If the home is worth more than $782,500 she will lose her pension.

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    COMMENTS

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    Jem
    4th Oct 2019
    10:49am
    How disgraceful! She still has bills to pay including the Nursing Home fees! Unbelievable!
    McDaddy
    4th Oct 2019
    11:49am
    Sells house and now has cash to pay Aged Care Fees or family pays her rent to live there if not already doing so. Side note is that her fees may be quite low if her daughter was caring for her prior to her entry into care, the house is not an asset when calculating her fees.

    It costs quite a lot to look after someone in care, it's not free.
    Bazza13
    4th Oct 2019
    4:30pm
    The question that was asked and the answer given are misleading. When the mother went into an aged care facility an aged care form is filled in and sent to Centrelink, there is an assessment done and the fees payable are based on that assessment, there are many variables sometimes people pay only pay 85%of their pension others have to pay more it is quite complicated . The Aged Care Facility assists clients to do this form and it usually takes about 6 wks to be finalised.
    GrayComputing
    4th Oct 2019
    6:35pm
    NO ASSET TEST FOR A PENSION EVER AGAIN!
    A pension is not welfare.

    Now is the season for discontent, so do something about it!
    It is time to kill off this insane hugely expensive pensioner whacking bureaucracy.

    It is time for all of us (yes that means you) to rant at our MPs and Senators daily to take action for human decency and a huge stress reduction for pensioners

    Most economist say we will save taxpayers money by dropping asset testing because of the massive overheads cost in running Centrelink and the 10,000 conflicting rules.

    Hiring more Centrelink staff will only increase taxpayer’s costs for processing the creeping insane red tape monster system politicians and well paid bureaucrats have created.

    Help scrap it now. Become a hero.

    Even the UK and poorer New Zealand has a NO ASSET pension so it is cheaper and user friendly.

    Why worry that few million$ earners get it too. That is peanuts to them, not enough for a good vintage champagne.

    Do retired and retiring people really look forward and want 100++ visits to/from Centrelink and be part of 3 million waiting queues and lost calls?

    We all (that means you) need to tell our MP and senators every day that these criminal asset tests for a pension must be dropped now.
    Blossom
    6th Oct 2019
    9:01pm
    Centrelink now expect you to do everything on-line.
    Too bad if you don't know to use a computer. They have some at their offices for customers to use.
    I do know of one lady in a country they do the computer work for her so she won't muck their computer up.
    Niteawk
    5th Oct 2019
    6:00am
    Is there a change of rules if the Mother is a DVA Veteran.
    Blossom
    6th Oct 2019
    8:54pm
    .If the elderly lady is in High Care her pension is lower than her fees are at minimum rate. Aged Care Fees were higher in 2009 even if you got a full pension and have no assets.


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