{"id":1168,"date":"2025-08-17T03:37:32","date_gmt":"2025-08-17T03:37:32","guid":{"rendered":"https:\/\/trustedagedcare.com.au\/?p=1168"},"modified":"2025-08-17T03:37:32","modified_gmt":"2025-08-17T03:37:32","slug":"centrelink-and-aged-care","status":"publish","type":"post","link":"https:\/\/trustedagedcare.com.au\/newsite\/2025\/08\/17\/centrelink-and-aged-care\/","title":{"rendered":"Centrelink and Aged Care \u2013 What Happens to the Pension?"},"content":{"rendered":"<p data-start=\"215\" data-end=\"389\">When a loved one moves into aged care, it can feel like everything is changing.\u00a0 For many families, one of the biggest concerns is about Centrelink and Aged Care &#8211; and what happens to the <strong data-start=\"350\" data-end=\"388\">Pension<\/strong>?<\/p>\n<p data-start=\"391\" data-end=\"489\">In addition, will the Centrelink Age pension stop? Will it be reduced? Is the family home still exempt?\u00a0 Let\u2019s break it down.<\/p>\n<hr data-start=\"491\" data-end=\"494\" \/>\n<h3 data-start=\"496\" data-end=\"550\">\ud83e\uddd3 Does Entering Aged Care Cancel the Age Pension?<\/h3>\n<p data-start=\"552\" data-end=\"708\"><strong data-start=\"552\" data-end=\"637\">No \u2014 entering aged care does not automatically stop your loved one\u2019s Age Pension.<\/strong><br data-start=\"637\" data-end=\"640\" \/>But it <em data-start=\"647\" data-end=\"652\">can<\/em> change the <strong data-start=\"664\" data-end=\"687\">amount they receive<\/strong>, depending on their:<\/p>\n<ol>\n<li data-start=\"712\" data-end=\"764\">Income (including from super, investments, and rent)<\/li>\n<li data-start=\"767\" data-end=\"814\">Assets (including cash, shares, property, etc.)<\/li>\n<li data-start=\"817\" data-end=\"879\">Living situation (e.g. if someone is still in the family home)<\/li>\n<\/ol>\n<p data-start=\"881\" data-end=\"990\">Centrelink will conduct a <strong data-start=\"907\" data-end=\"921\">means test<\/strong> to reassess the individual\u2019s pension eligibility and payment amount.<\/p>\n<hr data-start=\"992\" data-end=\"995\" \/>\n<h3 data-start=\"997\" data-end=\"1036\">\ud83c\udfe1 What Happens to the Family Home?<\/h3>\n<p data-start=\"1038\" data-end=\"1109\">Here\u2019s where it gets tricky \u2014 but good advice makes all the difference.<\/p>\n<p data-start=\"1111\" data-end=\"1174\"><strong data-start=\"1111\" data-end=\"1174\">In the first place &#8211; If a spouse or protected person remains living in the home:<\/strong><\/p>\n<ul data-start=\"1175\" data-end=\"1276\">\n<li data-start=\"1175\" data-end=\"1219\">\n<p data-start=\"1177\" data-end=\"1219\">The home is <strong data-start=\"1189\" data-end=\"1219\">exempt from the asset test<\/strong><\/p>\n<\/li>\n<li data-start=\"1220\" data-end=\"1276\">\n<p data-start=\"1222\" data-end=\"1276\">The Age Pension is usually <em data-start=\"1249\" data-end=\"1276\">not affected dramatically<\/em><\/p>\n<\/li>\n<\/ul>\n<p data-start=\"1278\" data-end=\"1312\"><strong data-start=\"1278\" data-end=\"1312\">Moreover, if no one remains in the home:<\/strong><\/p>\n<ul data-start=\"1313\" data-end=\"1491\">\n<li data-start=\"1313\" data-end=\"1388\">\n<p data-start=\"1315\" data-end=\"1388\">The home is <strong data-start=\"1327\" data-end=\"1355\">exempt for up to 2 years<\/strong> from the date of entry into care<\/p>\n<\/li>\n<li data-start=\"1389\" data-end=\"1491\">\n<p data-start=\"1391\" data-end=\"1491\">After that, it\u2019s counted as an asset (with an assessable cap currently around <strong data-start=\"1469\" data-end=\"1481\">$197,735<\/strong>, indexed)<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"1493\" data-end=\"1660\">\ud83d\udca1 <strong data-start=\"1496\" data-end=\"1510\">Important:<\/strong> If the home is rented out, the <strong data-start=\"1542\" data-end=\"1573\">rental income <em data-start=\"1558\" data-end=\"1562\">is<\/em> included<\/strong> in the income test \u2014 this can reduce the pension or trigger additional aged care fees.<\/p>\n<hr data-start=\"1662\" data-end=\"1665\" \/>\n<h3 data-start=\"1667\" data-end=\"1714\">\ud83e\uddee What If Assets Are Sold to Pay for Care?<\/h3>\n<p data-start=\"1716\" data-end=\"1789\">Comparatively, if your loved one sells the home, or cashes out investments to fund care:<\/p>\n<ul data-start=\"1791\" data-end=\"1956\">\n<li data-start=\"1791\" data-end=\"1867\">\n<p data-start=\"1793\" data-end=\"1867\">The sale proceeds are counted as <strong data-start=\"1826\" data-end=\"1836\">assets<\/strong> and may reduce the Age Pension<\/p>\n<\/li>\n<li data-start=\"1868\" data-end=\"1956\">\n<p data-start=\"1870\" data-end=\"1956\">This can also increase the <strong data-start=\"1897\" data-end=\"1922\">means-tested care fee<\/strong> payable to the aged care provider<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"1958\" data-end=\"2110\">That\u2019s why <strong data-start=\"1969\" data-end=\"2005\">strategic timing and structuring<\/strong> is essential. Acting without advice can unintentionally reduce entitlements or trigger unexpected costs.<\/p>\n<hr data-start=\"2112\" data-end=\"2115\" \/>\n<h3 data-start=\"2117\" data-end=\"2167\">\ud83d\udcb0 Does Centrelink Affect Aged Care Costs Too?<\/h3>\n<p data-start=\"2169\" data-end=\"2264\">Yes \u2014 Centrelink\u2019s income and asset assessment also determines how much your loved one pays in:<\/p>\n<ol>\n<li><a href=\"https:\/\/www.myagedcare.gov.au\/aged-care-home-costs-and-fees\"><strong data-start=\"2268\" data-end=\"2293\">Means-Tested Care Fee<\/strong><\/a><\/li>\n<li data-start=\"2296\" data-end=\"2337\">\n<p data-start=\"2298\" data-end=\"2337\"><strong data-start=\"2298\" data-end=\"2337\">Accommodation payments (RAD or DAP)<\/strong><\/p>\n<\/li>\n<\/ol>\n<p data-start=\"2339\" data-end=\"2473\">Your pension isn\u2019t just a source of income \u2014 it affects <em data-start=\"2395\" data-end=\"2427\">how much you pay for aged care<\/em> and <em data-start=\"2432\" data-end=\"2472\">how much financial support you receive<\/em>.<\/p>\n<hr data-start=\"2475\" data-end=\"2478\" \/>\n<h3 data-start=\"2480\" data-end=\"2523\">\ud83d\udcd1 What Documents Do I Need to Provide?<\/h3>\n<p data-start=\"2525\" data-end=\"2610\">To reassess Age Pension and aged care contributions, Centrelink will usually require:<\/p>\n<ol data-start=\"2612\" data-end=\"2837\">\n<li data-start=\"2612\" data-end=\"2664\">\n<p data-start=\"2614\" data-end=\"2664\">Aged Care Calculation of your Cost of Care (SA457)<\/p>\n<\/li>\n<li data-start=\"2665\" data-end=\"2695\">\n<p data-start=\"2667\" data-end=\"2695\">Details of assets and income<\/p>\n<\/li>\n<li data-start=\"2696\" data-end=\"2746\">\n<p data-start=\"2698\" data-end=\"2746\">Copies of bank, investment, and super statements<\/p>\n<\/li>\n<li data-start=\"2747\" data-end=\"2782\">\n<p data-start=\"2749\" data-end=\"2782\">Information about the family home<\/p>\n<\/li>\n<li data-start=\"2783\" data-end=\"2837\">\n<p data-start=\"2785\" data-end=\"2837\">Accommodation agreements with the aged care provider<\/p>\n<\/li>\n<\/ol>\n<p data-start=\"2839\" data-end=\"2959\">At Trusted Aged Care Services, we help families <strong data-start=\"2887\" data-end=\"2930\">prepare and lodge these forms correctly<\/strong> to avoid delays or mistakes.<\/p>\n<hr data-start=\"2961\" data-end=\"2964\" \/>\n<h3 data-start=\"2966\" data-end=\"3005\">\ud83d\udc69\u200d\ud83d\udcbc Why Get Help with Centrelink?<\/h3>\n<p data-start=\"3007\" data-end=\"3092\">Because aged care financial rules are complex, not to mention \u2014 <strong data-start=\"3059\" data-end=\"3091\">the wrong move can be costly<\/strong>.\u00a0 As a matter of fact, our team regularly works with <a href=\"https:\/\/www.servicesaustralia.gov.au\/understanding-aged-care-costs-to-get-aged-care-services?context=60049\">Centrelink<\/a> and aged care providers to:<\/p>\n<ol>\n<li data-start=\"3164\" data-end=\"3321\">\u2705 Preserve pension entitlements<\/li>\n<li data-start=\"3164\" data-end=\"3321\">\u2705 Protect family assets (like the home)<\/li>\n<li data-start=\"3164\" data-end=\"3321\">\u2705 Reduce means-tested care fees<\/li>\n<li data-start=\"3164\" data-end=\"3321\">\u2705 Structure funding for long-term peace of mind<\/li>\n<\/ol>\n<hr data-start=\"3323\" data-end=\"3326\" \/>\n<h2 data-start=\"3328\" data-end=\"3371\">Let\u2019s Get Your Pension Working For You<\/h2>\n<p data-start=\"3373\" data-end=\"3602\">Again, don\u2019t let confusion around Centrelink and aged care leave your family stressed or underfunded.\u00a0 If you&#8217;re worried about Centrelink and Aged Care and what happens to the pension, reach out.\u00a0 Together, with the right guidance, your loved one\u2019s pension can continue to support them \u2014 and your family\u2019s financial future can stay secure.<\/p>\n<p data-start=\"3604\" data-end=\"3686\">\ud83d\udcde <strong data-start=\"3607\" data-end=\"3679\"><a href=\"https:\/\/trustedagedcare.com.au\/newsite\/contact\/\">Book your aged care strategy session<\/a> with Trusted Aged Care Services<\/strong> today.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When a loved one moves into aged care, it can feel like everything is changing.\u00a0 For many families, one of the biggest concerns is about Centrelink and Aged Care &#8211; and what happens to the Pension? In addition, will the Centrelink Age pension stop? Will it be reduced? Is the family home still exempt?\u00a0 Let\u2019s [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":1169,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[3,4],"tags":[140,141,44,142,143,144,145,146],"class_list":["post-1168","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-aged-care","category-centrelink","tag-age-pension-changes-aged-care","tag-aged-care-and-the-family-home","tag-aged-care-financial-planning-gold-coast","tag-aged-care-pension-rules-australia","tag-centrelink-and-aged-care","tag-centrelink-means-testing","tag-centrelink-sa457-form","tag-what-happens-to-pension-in-aged-care"],"acf":[],"_links":{"self":[{"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/posts\/1168","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/comments?post=1168"}],"version-history":[{"count":0,"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/posts\/1168\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/media\/1169"}],"wp:attachment":[{"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/media?parent=1168"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/categories?post=1168"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/tags?post=1168"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}