Home | Aged Care Royal Commission | No plan to change aged care asset test for family home
Prime Minister Anthony Albanese said there are no plans to touch the asset test for family homes. Picture: NCA Newswire/Adam Yip

No plan to change aged care asset test for family home

The Albanese government has said it will not consider changing the mean-test threshold on family homes for the aged care asset test.

Prime Minister Anthony Albanese confirmed that as part of the federal task force's reviews, the family home threshold would be left unchanged at $197,735, and contributions would be based on other assets.

"There is no change to the treatment of the family home in any of the documents that have been before the government," he said.

Currently, only a small portion of the family home's value is assessed, with the cap set at $197,735.

Homes valued above this cap are treated the same when determining how much an aged care resident can afford to pay.

This means there is no difference in what someone pays, whether their house is valued at $300,000 or $3m.

Chief of National Services Australia Chris Grice said this is a relief for some.

"You've got a number of folks who might have an available home, they might be asset-rich, but they've got no other assets or cash," Mr Grice told ABC.

"But, from the point of view of those who have the capacity to pay, they are not reticent in supporting consumer contributions.

"What they are reticent about is adequate transparency and or price controls."

Industry experts have argued that the current means-test threshold is outdated, especially since the cost of the sector will balloon to an estimated $42b in two years from the current $24.1b.

The government is also opposed to any new Medicare levy-style tax increase despite the recommendations of the Royal Commission.

Last year, a federal task force was established to look at ways to fund the aged care sector, following recommendations made by the Royal Commission.

The final report was due to be released in December; however, the government is still considering its recommendations.

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