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Balance Aged Care Specialists

How do Centrelink treat Retirement Villages?

Centrelink treat the purchase of an ILU in different ways depending on the amount you pay for the Entry Contribution.

If you pay more than the “Extra Allowable Amount” (currently $203,000) then Centrelink will treat you as a homeowner (even though you might not actually own the real estate) & the amount you pay for your unit will NOT be counted as an asset (the same treatment as if it were your home.

However, if you pay less than the “Extra Allowable Amount”, Centrelink will treat you as a NON-homeowner & will count the value of the home as an asset. But due to the fact you are considered a non-homeowner the asset test threshold for no- homeowners is higher. Plus, you would be able to claim rental assistance on the recurrent charges paid to the village operator.

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What is a Retirement Village?What are the costs for a Retirement Village?If we sell our home & buy into a village how will it affect our pension & can we afford it?How does it differ from Aged care?How do Centrelink treat Retirement Villages?Do we get our money back?Are they Government Guaranteed?Are there any limitations to buying into a Retirement Village?Do we own the property?What is the difference between a retirement village & an Over 55’s community?