Aged care means tested amount DVA compensation exemption

Aged care means tested amount DVA compensation exemption

by Christine Hopper

The aged care means tested amount DVA compensation exemption applies only to the veteran who suffered the injury or illness.

Aged care means tested amount

The Commonwealth regulates and subsidies the provision of formal aged care both in aged care facilities and ‘at home’. The cost to the care recipient is determined by Centrelink based on the individual’s aged care means tested amount. The aged care means tested amount includes an ‘income component’ equivalent to half of the care recipient’s ‘income’ in excess of the income of a full Service (or Age) Pensioner.
Read more about the aged care means tested amount and care fees

DVA Compensation Pensions for Veterans

Veterans who suffer from medical conditions directly related to their service with the Australian Defence Forces could be eligible for the DVA Disability Pension. The rate of Disability Pension payable depends on the assessed level of disability attributable to your service with the Australian Defence Forces.

The DVA Disability Pension is a form of compensation for physical impairments incurred. Thus the amount of the Disability Pension is not subject to any financial means testing.
Veterans who actively served in roles where they were exposed to danger from the enemy in World War II or later conflicts, can apply to DVA for a Service Pension. The Service Pension is of equivalent amount and subject to the same financial means testing as the Age Pension available from Centrelink. An eligible veteran could receive both a DVA Disability Pension and the means tested Service Pension.
Read more about DVA Veterans Pensions

Aged care means tested amount DVA compensation exemption for the veteran only

Many elderly veterans are now needing help with their personal care. Some veterans are able to stay at home and just have personal carers and/or nurses visit regularly to provide aged care at home. Veteran requiring more intensive care might enter residential aged care. The amount that an aged care resident or home care recipient contribute to the costs of their care is based on their ‘income’ and ‘assets’.

For a veteran, ‘income’ includes both the amount of any Service Pension and the income declared to DVA for the Service Pension means test. When a veteran himself receives aged care the DVA compensation is excluded from his ‘income’ for the purposes of his aged care fees. This aged care means tested amount DVA compensation exemption ensures that the veteran has access to his full compensation amount for his personal expenditure.

Aged care means tested fees and accommodation prices are complex. Christine at Financial Care Services understands the DVA Compensation and Service Pensions and Commonwealth assessment of the means tested amount for aged care both home care and residential aged care.

Assistance with completing the Commonwealth aged care means testing forms is available to clients of Financial Care Services.

A consultation with Financial Care Services helps you understand your potential and aged care costs together with the DVA and Centrelink implications of rearranging your assets or selling the former home. Call Christine on 03 9808 0338 to make an appointment for a consultation.

Aged care means tested amount DVA compensation exemption not available to DVA War Widow Pensioners

The DVA War Widow Pension is available to the surviving spouse of a veteran who died as a consequence of medical condition that was attributable to his active service in roles where he was exposed to danger from the enemy in World War II or later conflicts. The War Widow Pension is a form of compensation benefit and is not subject to any financial means testing.

A means tested Income Support Supplement (“ISS”) is available to recipients of the War Widow Pension from DVA. The financial means test for the ISS results in the ISS only being payable to DVA War Widow Pensioners who would otherwise be eligible for some Age Pension under the Centrelink Income and Asset Tests.

Entitlement to the DVA War Widow Pension is based on the spouse having suffered a medical impairment during active war service. The War Widow Pension is compensation for the loss of her spouse. Thus the War Widow Pension is not compensation for injuries or impairments that the War Widow herself suffered directly. Therefore, the aged care means tested amount DVA compensation exemption does not apply to the War Widow Pension or any attaching ISS .

The War Widow Pension including Supplements is more than the full rate of Age Pension including Supplements. But the War Widow Pension including supplements, is less than the income level required to generate a positive Income component of the aged care means tested amount. But a War Widow in receipt of the maximum rate of ISS could expect to have a have positive Income component of the aged care means tested amount. In each case, the actual amount of the means tested care fee would depend on the total assets and income position of the War Widow and her level of care.

Aged care means tested fees and accommodation prices are complex.
Christine at Financial Care Services understands the DVA Pensions and Centrelink assessment of the means tested amount for aged care both home care and residential aged care.
Assistance with completing the Commonwealth aged care means testing forms is available to clients of Financial Care Services.

Independent aged care financial planning advice services

Financial Care Services is an independent financial advisory service specialising in retirees of modest means and aged care entrants. Our core values of working with clients in their lifetime financial planning supports claiming DVA and Centrelink entitlements. Financial Care Services charges fees based on the work involved in advising you about pensions and aged care financial solutions and arranging your investments.
Christine at Financial Care Services understands both the DVA and Centrelink Pensions systems and the Commonwealth aged care fee arrangements.

A consultation with Financial Care Services helps you understand your potential retirement living and aged care costs together with the DVA and Centrelink implications of rearranging your assets or selling the former home. Call Christine on 03 9808 0338 to make an appointment for a consultation.

Financial Care Services is licensed to offer investment strategy advice and to assist you to invest. Financial Care Services does not base fees on the value of your assets nor do we accept any commissions or payments from other service providers.

To make an appointment for confidential, independent and professional advice about DVA, Centrelink, lifestyle or financial issues please contact Christine Hopper 03 9808 0338.

Disclaimer: The information contained in this website is of a general nature only and does not constitute “financial advice”. You should obtain your own personal financial advice before investing any money or moving in to any retirement village, lifestyle community or aged care facility. Financial Care Services is licensed to provide financial advice to individual clients based on their personal situations. © 2015 Financial Care Services Pty Ltd. All rights reserved.