Category: Advice Library

A range of resources to assist advisers deliver great advice; SOA wording, checklists and department forms.  Up to date and easy to access resources for all our members.

SOA GRANNY FLATS

Strategy Overview Gifting within the allowed limits is a legitimate way to reduce your assessable assets, where the funds used are financial investments it also reduces your level of assessable income. The gifting rules allow gifts of: $10,000 in a financial year (for a single person or couple combined) and $30,000 over a five year rolling period. The rolling five year period is the current financial year plus the previous four financial years. Any unused limits may not be accumulated from year to year. Gifts include: Money or assets transferred to family members Gifts to individuals, organisations and charities Gifts to or relinquishing control of a private trustor company where you are not attributed with the assets under the source and control tests Assets sold or transferred for less than their market value Gifting within the allowed limits can also reduce the maximum amount of accommodation payment you can be charged at <Facility Name> Gifts do not include: Transferring up to $500,000 to a Special Disability Trust for an eligible family member Transferring a house in exchange for a Granny Flat Right Buying birthday and Christmas presents Selling or reducing assets to meet expenses for example, to buy a car,

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SOA Wording – Challenger CarePlus

The Challenger CarePlus annuity provides guaranteed regular payments in exchange for an initial capital investment.  The annuity creates a regular cash flow for life, regardless of how long the annuitant lives or how investment markets perform. It is treated beneficially for Social Security purposes through favourable income and assets test treatment. The CarePlus Insurance will pay the estate or the nominated beneficiaries a lump sum (called the sum insured) when you die. You pay a single premium for lifetime insurance cover. The Insurance can only be purchased if you are also purchasing a CarePlus Annuity.

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SOA Wording – Couple Assessment

Accommodation Payments – Couple  For a couple the timing of an aged care asset and income assessment can affect the calculation of assessable assets and income.   The formula used to calculate your ability to contribute towards the cost of your accommodation is based on your assets and your income.   As a couple, the assessable assets are considered on a 50/50 basis, irrespective of in whose name the asset is held and the minimum assets amount ($51,000 as at 20 September 2021) is deducted from each share. The income assessment will also capture half of each person’s income.  Some people will have their accommodation costs met in full or in part by the Australian Government, while others will need to pay the accommodation price agreed with the aged care home.  The outcome of the income and the asset test are added together, if the amount is less than a pre-determined amount then you qualify to be a supported resident.   The timing of the assessment can create very different outcomes when dealing with a couple because of an exemption that applies to your former home when your spouse still lives there.  A couple who both enter care on the same day and submit to the assessment after they enter will each have 50% of the value of the former home assessed in their assets.   A couple who enter care on separate days  and submit their assessment on or after entry to care will

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SOA Wording Asset Test Changes

Centrelink Assets Test Change  The Age Pension assets test is a means-based test which helps Centrelink determine your eligibility for the age pension and other social security payments. If you have assets over the lower threshold, your entitlement to the Age Pension will reduce.  Under the current rules, the asset test reduces your rate of Age Pension by $1.50 per fortnight for every $1,000 over the lower threshold.  Under the new rules that will apply from 1 January 2017:  The lower threshold is increasing  The rate at which your Age Pension reduces if your assets exceed the lower threshold is doubling from $1.50 per fortnight to $3.00 per fortnight for every $1,000 over the threshold.  This has the effect of reducing the cut-off limit where an Age Pension is no longer payable.  What are the new asset test thresholds? As at 1 July 2021 The table below provides a summary of the current and new Age Pension asset test thresholds. Please note that the lower thresholds have increased and the cut-off thresholds where you are not entitled to an Age Pension have lowered.    Current lower threshold   New lower threshold (estimated)  Current cut off limit  New cut-off limit  (estimated)  Single homeowner  $270,500  $250,000  $791,750  $546,250  Single non-homeowner   $487,000  $450,000  $943,250 

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RV SOA Wording Revised

There are lots of different terms used by retirement communities, from the traditional “Retirement Village” or “Over 55’s Community” to the more contemporary “Gated Community”, “Lifestyle Resort” and even “Aged Care”. In reality most retirement communities are either a Retirement Village or a Land Lease Community.

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