Using discretion

The means assessment is to ensure that where appropriate people use the resources available to them before getting Residential Care Subsidy. People should use the resources available to them to meet the cost of their care before they get additional financial support.

There is discretion to count amounts of assets or income a client or their partner (living or deceased) deprived themselves of into the financial means assessment. Deprivation can be direct or indirect and may have happened at any time.

Note there is no discretion for excess gifting within the 5-year gifting period.

When considering using discretion to count back deprived assets or income, the circumstances of the client should be taken into account. There is no set criteria. Consider the reasons for their decisions, as well as their current situation and access to resources.

Discretion can be used to count deprived amounts back into the financial means assessment as if the deprivation had not occurred.

There are some restraints when using discretion, and it should not be used automatically. Each case needs to be assessed on the facts and consideration given to whether counting deprivation back into the financial means assessment would result in the client having to use their assets below the threshold to pay for their care.

Factors to consider may include (but are not limited to):

• what resources are available to the client?
• who a gift was made to (i.e. family, trust, charity organisation)?
• why the client deprived themselves?
• who benefitted from the deprivation?
• did the client receive anything in return for depriving themselves?
• the total value of the client's assets
• what would the client's position be if they had not deprived themselves?