For age pension purposes the family home is an exempt asset. The family home is not counted under the assets test or the income test when calculating the rate of age pension payable. If one member of a couple becomes a permanent resident at an aged care facility and their partner remains living in the family home, the family home remains an exempt asset. The partner or spouse is a ‘protected’ person. For age pension purposes only a spouse or partner is a protected person.
If a person becomes a permanent resident at an aged care facility and does not have a partner living in the family home, the home is exempt for two years. At the end of two years, the resident would be considered a “non-homeowner” and the house would be counted as an investment property at its market value. This often means the aged care resident will receive a reduced pension or no pension at all under the Centrelink assets test.
