Providing you meet the initial requirements, Work and Income (WINZ) will perform a financial means assessment on you and your income, this includes property owned by your partner.
Your income includes private pensions, interest from bank accounts and other investments, dividends from shares, and wages or salaries. Assets are deemed to include "realisable assets" such as money in hand or in any savings organisation, investments, shares, and loans you have made to other people. They also include items such as boats, caravans, and investment properties.
Personal belongings such as clothing and jewellery are not included as assets, nor are prepaid funeral expenses. This may include those of the applicant and his/her partner, although the maximum amount allowed is $10,000 per person.
From the 1 July 2005, new thresholds are imposed on the Financial Means Test for persons requiring care. Your assets need to be equal to or under the appropriate threshold for the subsidy to apply. If you are single or have a partner in residential care, then Option A may be more appropriate for you. Option B is designed to apply when you still have a partner or dependent child living in the family home.
1. Option A has an asset threshold of $150,000.00 (includes the valuation of your house and car).
2. Option B $55,000.00 (not including valuations of your car or house)
However the decision as to which option to apply to you may not be as simple as outlined above, it is for this reason that you consult with your legal advisor as to which option is more suitable for you and your situation.
It is also proposed that from 1 July 2006 all asset thresholds will increase $10,000.00 each year. Please note that the house is only exempt from the assessment when it is the principal residence for your partner or dependent child.
WINZ also has the power to look retrospectively from your application in respect to your income. Any gifts of cash or property you have made in the five years before the application are included in your assets. You may gift up to $5,000 each year in the five years before your application.
Another option to consider if your assets are above the threshold but you have limited cash assets is an interest-free residential care loan which can help pay for your care. This loan will be repaid when you sell your house or from your estate.
Please contact us if you wish to discuss your personal options in relation to eligibility for the above subsidy.
