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man preparing for residential aged care considering the truths and myths of funding that care, sitting at a table reading a page of information with a laptop computer and a pen at hand: debunking aged care myths

Debunking Aged Care myths  

Debunking Aged Care myths  
– Gifting; Protected Person status  

In this series of articles, we have been debunking Aged Care myths.  Shining a light on the topics that have a mythical aspect to them, we hope to clarify the real from the imagined.  In this article, we deal with Gifting; and with Protected Person status. 

What are the myths? 

Gifting an asset such as a family home will reduce the assets for the aged care means testing.  The consequence is that making such a gift creates a deprived asset that may be assessed.   

And as for the Protected Person status home exemption.  The home, exempted from assessment for aged care purposes whilst it is occupied by such a person, can lose that exemption, if that person loses that status.  

What are the facts regarding these matters? 


The Gifting rules that apply in social security assets test assessments similarly apply to aged care means testing.  If any gift has been made in the five years prior to the aged care assessment being made, it will count.  The Gifting rule applies to any gift in excess of $10,000 in one year, or more than $30,000 in the prior five years.  The rule even applies where a financial hardship application is being considered.   

Protected Person status exemption 

A Protected Person continuing living in the home as carer for an aged person receiving care at home may lose that status when the aged person moves into residential care.  If their only entitlement to that status was receipt of a Carer’s Allowance, it is lost in that residency change.  There are some restrictive circumstances under which the status may be retained, or the home similarly treated.  Those circumstances include –  

  • Eligibility for another social security income support payment, or if a financial hardship application is viable 
  • The home was occupied by a near relative for 10 years or more, or 
  • That near relative was a carer, or 
  • That near relative is a disabled child of the aged care resident and the home promotes the child’s independent living. 

A successful financial hardship application means financial relief for an aged care resident with (2023) income less than $41,496.  They would become free of the accommodation contribution and of the means tested care fee. 

Getting the facts 

It is too late to overcome these matters after the event.  To ensure that your family member has relevant advice consult an accredited adviser before seeking the Aged Care eligibility assessment.  You can research some of these matters on the myagedcare website but you need to know what is applicable. Professional advice will ensure the factors that apply to your circumstances are addressed in your best interest. 

Continuum Financial Planners have an accredited Aged Care specialist financial adviser on the team.  To engage with them, either call our office (on 07-34213456), or  you can  Contact Us Online or Book A Meeting to meet with us at our office. 

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