Many people about to enter residential aged care worry that they will be forced to sell the family home to fund the accommodation costs. This decision is often made by the family of the person entering aged care.
However, there can be advantages to keeping the home when it comes to aged care and Centrelink/DVA.
The following factors should be considered when deciding what to do with the family home:
- The amount of money required (if any) to bring the home up to rental standard
- The commitment in time and funds for ongoing maintenance and repairs
- possible capital gains tax consequences if the home is rented for more than six years
- Any land tax payable if the home is rented (determined by the state)
- Tax payable if the home is rented
