Vakrinos and Secretary, Department of Health (Social services)

This matter concerned an appeal by Mrs Vakrinos, represented by her daughter, against a decision by the Secretary of the Department of Health regarding her aged care means assessment. The central dispute revolved around whether a refundable accommodation deposit (RAD) paid by Mrs Vakrinos for aged care services should be considered a full asset for means-testing purposes, or if its value could be reduced by a loan taken out against it.

The Tribunal was required to determine whether a refundable accommodation deposit is an asset for the purposes of aged care means testing, and specifically, whether the value of such an asset could be reduced by a loan taken out against it. The Tribunal also had to consider the impact of legislative amendments made in October 2016 on the assessment of Mrs Vakrinos' assets.

The Tribunal reasoned that the *Aged Care Act 1997* (Cth) and subsequent case law clearly stipulate that a refundable accommodation deposit is to be included as an asset for aged care means testing. Furthermore, the Tribunal noted that the Act was amended in October 2016 to clarify that such a deposit is not to be reduced by any charge or encumbrance. Although this amendment occurred after Mrs Vakrinos entered aged care and finalised loan agreements, the Tribunal found that it reflected the original intent of the Act. Consequently, the full value of the RAD was to be considered when assessing Mrs Vakrinos' assets for the determination of her means-tested care fee.

The Tribunal affirmed the decision under review.