How the Family Home Is Assessed for Aged Care
Family home aged care assessment explained: when the home counts, the capped value, the two-year exemption, protected person rules, and why timing matters.
Why the home matters
The capped value
The two-year exemption
Protected persons
Couples and the home
Should you sell, keep or rent?
Getting it right
Frequently asked questions
Is the family home counted in the aged care means assessment?
Sometimes, but not always, and never at full market value. A capped value applies rather than the full price, a two-year exemption often applies after moving into care, and if a protected person keeps living in the home it can be excluded from the assessment entirely.
Who is a protected person for the family home?
Generally a spouse or partner still living in the home, a dependent child, or a carer or close relative who is eligible for an income support payment and has lived there for a set period. While a protected person lives in the home, it is kept out of the means assessment.
Do I have to sell the family home to pay for aged care?
Not necessarily. Thanks to the capped value, the two-year exemption and protected person rules, many families keep the home and still manage the costs. Whether to sell, keep or rent depends on your whole financial picture, so seek advice before acting.
How long is the family home exempt after entering care?
For the Age Pension assets test, the former home is generally exempt for up to two years after the person leaves it, and longer while a spouse still lives there. Aged care fee treatment can differ, so check both and get advice for your situation.