Licence to occupy
Clients who live in flats or houses on hospital or rest home grounds, and clients living in retirement villages usually purchase a licence to occupy rather than purchase the premises.
When a client purchases the licence to occupy, the surrender value will normally be refundable, and should be included as an asset in the means assessment of assets.
Client with a partner living in the community
If the client has a partner in the community living in the licence to occupy flat or house, this may be exempt unless the client has chosen the higher $300,811 (as at 1 July 2026) asset threshold on the application form.
Licence to occupy purchased by another person or entity
If the licence to occupy is in the client's name, but the licence was purchased by another person or entity (for example, a family member or trust), then any money due upon surrender would be paid to the other party. The license would not be included as an asset in the financial means assessment if the client can prove this is the arrangement.
For more information see:
- Previous thresholds Asset thresholds
- Property ownership
- Residential Care Subsidy Asset verification [no link find out why]
- Residential Care Subsidy Property ownership [no link find out why]
Legislation
- Applicable asset thresholds clause 1 schedule 2, Residential Care and Disability Support Services Act 2018
- assets (definition) clause 4 schedule 2, Residential Care and Disability Support Services Act 2018
- exempt assets (definition) clause 4 schedule 2, Residential Care and Disability Support Services Act 2018
