LZBW and Secretary, Department of Health (Social services)

This matter concerned an application for review of an assets assessment for aged care fee purposes. The applicant, an elderly lady represented by her daughter, had left her retirement village unit to enter an aged care facility. The core dispute revolved around the characterisation of a sum of $450,000, which the applicant argued was the market value of her former unit and should be reduced by a loan, while the Secretary, Department of Health, treated it as a refundable accommodation deposit or an entry contribution to a retirement village.

The legal issues before the court were whether the sum of $450,000 should be considered as the value of the applicant’s principal place of residence or as a refundable accommodation deposit, and whether this sum should be reduced by the value of a loan of $395,000. The court was required to interpret the terms of the Residents Agreement and determine the nature of the financial arrangement between the applicant and the retirement village operator in the context of aged care fee assessments.

The court examined the Residents Agreement and the evidence of the Review Officer. It was determined that the $450,000 represented an entry contribution for a retirement village and should be considered as the value of the applicant’s principal place of residence. The court found that the loan of $395,000 was not a mortgage or encumbrance secured against the unit. Consequently, the court affirmed the decision under review, finding that the applicant's assets had been correctly assessed for aged care fee purposes.