National Redress Scheme payments to be exempt from means testing

From 1 January 2025, payments made under the National Redress Scheme for Institutional Child Sexual Abuse Act 2018 (National Redress Scheme) will be excluded as an asset from the aged care means assessment.

This means people who have received a redress payment (and their partners) will no longer be asked to pay more for care in an aged care home due to receiving the payment.

This exemption is available to:

• anyone accessing permanent care in an aged care home who has received a redress payment or receives one in the future. 
• residents whose partner has received a redress payment. This is because half of the combined assets of both members of a couple is included in their means assessment.

What will I need to do to get my redress payment exempted?

To protect applicants’ privacy, we cannot access information about National Redress Scheme payments. You will need to tell Services Australia or the Department of Veterans’ Affairs (DVA) about your redress payment for it to be excluded from your assets. We are working with Services Australia and DVA to make sure this process is handled sensitively. We will provide information about how to do this soon.

If you’re already in an aged care home, you may be due a refund of means tested care fees or accommodation costs. If you tell Services Australia or DVA about your payment, you will get a letter advising any refund amount. Your provider will pay it to you.

If you have received a redress payment or an offer of redress, we encourage you to seek free financial counselling through knowmore. Their financial counsellors can help you understand how a National Redress Scheme payment may affect you, including impacts on Centrelink, housing and other financial circumstances.

Visit the knowmore website to learn more.