Articles for your marketing team to use to send to your COI’s.
For many years couples entering aged care were often advised to move in on separate days, this simple but effective strategy often meant that the first person qualified as a Low Means resident while the second paid the market price. But as the Maximum Permissible Interest Rate drops the Refundable Accommodation Contribution (RAC) becomes more expensive, in some cases more than the market price. When it comes to aged care everyone has the choice of paying towards the cost of their accommodation by a lump sum, daily payment or a combination of the two (you can even deduct your daily payment from your lump sum if you choose). For people who pay the market price, the lump sum amount is set by the facility and requires approval if it is above $550,000. The daily payment is calculated using a government set interest rate, known as the maximum permissible interest rate (MPIR) and is charged on any amount of unpaid lump sum. For example if the market price was $500,000 and some paid $200,000 by RAD then the DAP would be $40.36/day Low means residents can pay a Daily Accommodation Contribution (DAC) which is calculated by a means assessment which takes
Many of us think of aged care as a service provided in an aged care facility but in fact most people access care in their own home. Around 1 million people in Australia receive aged care in their own homes. The first (and possibly most important thing) to understand is that Home Care can be delivered into anywhere you call “home”. The most basic level of Home Care is provided through the Commonwealth Home Support Programme. CHSP services include: domestic assistance, personal care, respite services, social support, transport and meals. The amount you pay for services through CHSP varies from one provider to another and from individual to individual so confirm the cost before you receive the services. If your care needs are higher, a Home Care Package may better suit you. Changes to Home Care Packages took effect in February 2017 — giving greater access to care and greater choice about who delivers that care. To qualify for a Home Care Package you will need to have an assessment of your care needs — known as an ACAT (Aged Care Assessment Team). The assessment is free and will normally be conducted in your own home, the purpose of the
In the budget last year the government announced an incentive for people over 65 to downsize their home. The “downsize incentive” is due to start on 1 July next year (2018) and will allow people over the age of 65 to contribute up to $300,000 from the proceeds of the sale of their home into their superannuation. In the case of a couple this means up to $600,000 could be contributed. Contributions made to superannuation under the incentive contributions: Will not be subject to the age test (over age 75) Will not be subject to the work test (age 65-74) Will be permitted in excess of the $1.6m cap Will be allowed to be made by both members of a couple for the same home To be eligible for the incentive: The home must have been owned for at least 10 years The contract of sale must be entered into on or after 1 July 2018 The contribution must be made within 90 days of the property transferring An important aspect of this incentive is that people can move into another home or apartment, a Granny Flat, Retirement Village, Land Lease Community or Aged Care Facility. In fact they do
We are seeing an increasing number of people coming to see us only AFTER they have received the “OMG letter” from Centrelink. What is the “OMG letter”? I hear you say. Well the OMG letter is the letter that Centrelink and the Department of Veteran’s Affairs (DVA) send out 2 years after someone moves into aged care, letting them know that their former home is now included in their assets, that they are now considered a non-homeowner for pension purposes and advising of their new pension entitlement – often zero. Which is the point at which they exclaim “OMG!” The situation normally comes about when a protected person (other than a spouse) is living in the home, often a child who was a carer. When Mum or Dad move into aged care they are told that they are a protected person and that the home will be exempt from aged care means testing. But what should be underlined here is aged care the pension exemption is different. From a pension point of view your home is exempt from the asset test for 2 years from the date you (or your partner) move out – you don’t need to