Accommodation Supplement : Contents
Retirement village residents with 'Licence to Occupy'
Some retirement village residents have a 'Licence to Occupy' or 'Occupational Rights Agreement'. These clients are considered homeowners for Accommodation Supplement and must provide:
- verification of their 'Licence to Occupy' title or 'Occupational Rights Agreement' and
- verification or breakdown of expenses
Note residents may pay for a variety of costs, and not all will be qualifying costs for Accommodation Supplement. MSD must assess each case on its own merits and only include costs related to the client's accommodation.
Examples of costs to include
- repayments on a loan or mortgage taken out to obtain the client's licence to occupy their villa or unit
- local authority rates (if the client gets a rebate, this must be deducted)
- water rates
- insurance premiums relating to their villa or unit (must not include contents insurance)
- cost of essential repairs and maintenance relating to their villa or unit
Examples of costs not to include
- village outgoings for construction or further development of the village
- service charges e.g. home care services, the provision of meals
- utility charges that include the supply of electricity, gas, telephone, internet, television and other services and utilities
- health service charges, including provision of medical and pharmaceutical services
- village outgoings connected with common facilities within the centre e.g. recreation centre and sport facilities
Payment of rates
Some residents may pay their rates with a service fee directly to the retirement village. In these cases, the cost for rates can be included in the Accommodation Supplement assessment. The client must provide verification of the rates they pay for the villa or unit they occupy.
For more information see:
Legislation
- accommodation costs (definition) section 65AAA Social Security Act 2018
