This document is part of the Aged Care Gurus Advice Library. You can find templates for SOA Wording, DVA Forms, Aged Care Forms, and Centrelink Forms.
Members also have access to the Marketing Library, Technical Library and Further Education.
Post 1 July 2014 a person's ability to contribute towards the cost of their accommodation and care is subject to a means test which incorporates both assets and income. Refer to Residential Aged Care Means Test Factsheet. The reforms removed the distinction between low care and high care, creating a single payment structure for aged care residents.
Deeming is a set of rules used to assess income from financial investments for social security and aged care purposes. Deeming assumes that financial investments earn a certain rate of income, regardless of the amount of income they are actually earning. If income support recipients or aged care residents earn more than these rates, the extra income is not assessed.
An annuity provides guaranteed regular payments for a set period of time in exchange for an initial capital investment. Unlike market linked retirement income streams, annuities give clients certainty - they know how much they will get and how long it will last.
