Category: Marketing Library

Wanting to retain and/or build your Aged Care Advice offering? This suite of marketing materials will allow you to stand out from the crowd with booklets, newsletters, presentations and Q&A handouts.

ACG Adviser QA LOW MEANS

Q: What if I don’t have any money?   A: A common misconception about Aged Care is “if I don’t have any money, I won’t get in”, in reality most Aged Care Facilities keep a ratio of people with low means and those who pay the market price.  The amount you need to pay towards the cost of Aged Care is based on your (and if applicable, your partner’s) assets and income.  Known as low means residents people with assets and income below the thresholds don’t pay an accommodation contribution.  People with assets and/or income above the threshold/s but with a calculated amount below $60.74 p.d. pay a calculated amount.  Low means residents can choose to pay towards the cost of their accommodation by daily charge, known as a Daily Accommodation Contribution (DAC) or by Lump sum, known as a Refundable Accommodation Contribution (RAC) or a combination of the two.  Your accommodation contribution is calculated at:  50c per dollar of income above   $29,234.40 p.a. (single)  $28,662.40 p.a. (couple)   Plus   17.5% of assets between $52,500 – $178,839.20   

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ACG Adviser QA HOME CARE PACKAGE COSTS

Q: What does a home care package cost?  A: The cost of a Home care packages consists of a basic daily fee and an income tested care fee.  The basic daily fee can be charged to all home care package recipients. The fee varies across package levels.   Level 1 $10.08 per day  Level 2 $10.66 per day  Level 3 $10.97 per day  Level 4 $11.26 per day    Some providers will waive this fee for people who cannot afford it. Where this happens the amount of funds held within the package is reduced by the same amount.     The Income-tested care fee is assessed by the government based on your (and if applicable your partner’s) assessable income. Assessable income is calculated using Centrelink or DVA rules and also includes your pension income.    The Income Tested Care Fee is calculated at 50c per dollar of income above the Income free area.  The income free areas are:   $29,234.40 p.a for a single    $22,679.80 each for a member of a couple*.   *A higher threshold applies to couples who are separated by illness.     Full Pensioners do not pay an Income Tested Care Fee and there is an annual cap of $5,879.85 for a

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ACG Adviser QA Children lending to pay the RAD

Q: Can my children lend me the money to pay the RAD? A: The simple answer is yes, but it will impact your cost of care and may cause estate planning issues. Children often lend parents money for the Refundable Accommodation Deposit (RAD) this may be because the parents have insufficient funds, there is an aversion to borrowing or because the Daily Accommodation Payment will cause pressure on the parents cash flow. While it is not an uncommon practice you should be aware of the impacts this loan will have on the cost of care. The RAD is included in the assessable assets for calculating the Means Tested Care Fee. There is no consideration given in the assessment to some (or all) of the money being a loan. The total value of the RAD will be included in the aged care assets test and the MTCF will increase as a result of the loan. Loaning money to pay a RAD can create estate planning issues as the RAD is generally refunded to the aged care resident or their estate. You should seek legal advice about documenting any loan agreement. Alternatively, children meeting the cashflow shortfall, paying a Daily Accommodation Payment

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ACG Adviser Newsletter – New way to sell a slice of your home March 2020.docx

A new home-equity release product launched this week by Australian Securities Exchange listed “fractional investing” platform DomaCom promises to help you unlock the value of your property.  Equity release normally works on either a credit basis – the provider lends you money and charges interest that compounds each month – or on a real estate security basis, where the provider buys a portion of your house. However, the new product – called the DomaCom Fund – is an Australian Securities and Investments Commission-registered managed investment scheme.  Essentially, it turns your home equity into shares and connects you with people who want to buy some.  People over the age of 60 can “sell the back bedroom” – that is, a fraction of their home. The seller nominates the price and whether they wish to receive a lump-sum or monthly payment. On the other side of the transaction is the investor. They receive monthly income of 3 per cent and a share of the capital value of the home. Lump sum or monthly? Maintaining the property and covering ongoing costs, such as insurance and rates, is shared between the seller and the investor.  When the property is sold in full, the seller and

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The real cost of moving to a retirement village – March 2020.doc

The biggest mistake most people make when working out if moving to a village is affordable, is to simply compare the sale price of their present house with the price of their new one. The conclusion is, if they are selling for more than they are paying to buy, it is affordable. But this only examines a small part of the transaction. If you are trying to crunch the numbers on moving to a retirement village a simple method is to break it down into the Ingoing, Ongoing and Outgoing™ – this can be as simple taking a piece of paper and dividing it into those three sections. If you are comparing one village with another, or perhaps different payment options for the same home this simple technique can help identify differences in what you will pay that may not be apparent if you simply compare purchase prices. Crunching all of the numbers will ensure that you understand what you pay and when. Seeking specialist advice can ensure there are no nasty surprises down the track. Identifying the impact on your pension entitlement, eligibility for rent assistance, home care package costs, your cash flow position together with any tax and

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Category: Marketing Library

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