Category: Advice Library

Strategy Overview There is a two year general exemption that applies to your former home after entering aged care whereby the home is exempt from the assets test when calculating Age Pension entitlements. The purpose of this rule is to enable people to move back into their former home if they are able to do so. Any rental income received is fully assessable. After two years, the property will be included as an assessable asset and your pension will be assessed on the basis of a non-homeowner which provides a higher asset threshold. When calculating the aged care means tested amount, the former home value will be assessed up to a capped value of $171,535.20 unless a ‘protected person’[1] resides in the home, in which case the value of the home is exempt. A protected person includes: Your spouse or de-facto partner A carer who has resided in the home for at least 2 years who is eligible to receive an income support payment A close relative who has resided in the home for at least 5 years who is eligible to receive an income support payment Rental income from the former home will be included in the aged care

Strategy Overview Centrelink/DVA are responsible for determining your capacity to contribute towards the cost of your care through the Means Tested Care Fee. This assessment is carried out after you move in to residential aged care as a permanent resident. Financial assets held in a Trust or Company structure are assessed differently to those held in your own name and can be very different to the legal or tax treatment of a trust or company.  Centrelink assess trusts and companies against two tests: a source test and a control test. The source test determines where the asset or monies used to purchase assets in the trust originated. The control test determines who controls, or could reasonably expect to control, the trust. Based on the outcomes of these tests, the asset value will be attributed to an individual or to a group of people in percentage terms and any income earned by the trust is attributed according to the same percentages. As a financial planning strategy, the key benefit of using a trust is that the monies held within the trust are not subject to deeming, they are assessed on the taxable income earned. Because of the tax paid accumulation nature

Home care Many people who need care are not aware that a variety of services are available for those who prefer to stay at home. Home Care Packages provide Government subsidised services to assist people to remain in their home for as long as possible. Services include:Personal care – such as help with showering or bathing, dressing, mobility, meal preparation and eating Support services – such as help with washing and ironing, house cleaning, gardening, basic home maintenance, home modifications related to care needs such as handrails in the shower, and transport to assist with shopping, visiting the doctor or attending social activities Clinical care – such as nursing, and other health support including physiotherapy (exercise, mobility strength and balance) and podiatry (foot care). Other services may also be provided eg you may benefit from aids and equipment to assist with mobility, communication or personal safety What types of packages are available? There are four levels of Home Care Packages: Home Care Level 1 – to support people with basic care needs Home Care Level 2 – to support people with low level care needs Home Care Level 3 – to support people with intermediate care needs Home Care Level

Home care Many people who need care are not aware that a variety of services are available for those who prefer to stay at home. Home Care Packages provide Government subsidised services to assist people to remain in their home for as long as possible. Services include:Personal care – such as help with showering or bathing, dressing, mobility, meal preparation and eating Support services – such as help with washing and ironing, house cleaning, gardening, basic home maintenance, home modifications related to care needs such as handrails in the shower, and transport to assist with shopping, visiting the doctor or attending social activities Clinical care – such as nursing, and other health support including physiotherapy (exercise, mobility strength and balance) and podiatry (foot care). Other services may also be provided eg you may benefit from aids and equipment to assist with mobility, communication or personal safety What types of packages are available? There are four levels of Home Care Packages: Home Care Level 1 – to support people with basic care needs Home Care Level 2 – to support people with low level care needs Home Care Level 3 – to support people with intermediate care needs Home Care Level