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.
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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.
Pre-paying a funeral enables a client to choose and pay in advance for their eventual funeral. They can pay for the funeral in full or pay it off in regular instalments over a period of time. The cost is fixed in today's dollars, even if the funeral is not for many years. Funeral bonds are an investment product that can only be withdrawn after death to pay for a funeral, they may not cover the cost of a funeral.
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.