July 2015 changes in means tested aged care fees

July 2015 changes in means tested aged care fees

by Christine Hopper

Careful readers of aged care invoices could notice a small reduction in the means tested care fees from July 2015.  The July 2015 changes in means tested aged care fees reflect small increases in the Age Pension means test allowances.

July 2015 changes in means tested aged care fees from increased Income Free Area

The Income Free Area used for calculating the Income Component of the means tested amount has been reset to $25,316.20 per year for a single aged care recipient. Thus the July 2015 changes in means tested aged care fees allow a care recipient to have an additional two dollars per fortnight of income before the Income Component starts.

The Income Free Area used for calculating the Income Component of the means tested amount has been reset to $24,796.20 per year for each member of a couple separated by illness and resident in an aged care facility.  Each member of a couple at Centrelink could have an additional two dollars per fortnight, four dollars per fortnight for the couple, before the Income Component cuts in.

These July 2015 changes in Means tested aged care fees Income Free Area, match the increases in the Age Pension Income Test Allowances.  Read more about Centrelink Pension Allowance Increase July 2015

July 2015 changes in means tested aged care fees from increased deeming rate changeover points

Centrelink use the deemed income on financial assets not your actual investment income, for your assessed income for aged care fees and Pension means testing.
The first tranche of your financial assets is deemed to be earning 1.75% per annum and the balance of your financial assets is deemed to be earning 3.25% per annum as at July 2015.
The changeover level for the deeming rates increased slightly to $48,600 for a single person and $80,600 for the total combined assets of a couple at Centrelink.

Notifcation of July 2015 changes in means tested aged care fees

Centrelink will advise both the care recipient and the aged care provider of any July 2015 changes in means tested aged care fees.  Centrelink revise the means tested fee each quarter.  Your care fee could change after an increase in the Age Pension and DSP payment rates.  DVA Pensioners’ means tested care fees change when their pension rates increase.

Your personal means tested care fee will also be revised whenever you inform Centrelink of a significant change in your income, assets or personal circumstances.  The Attorney or Court appointed Administrator, for an aged care recipient, must inform Centrelink when assets are sold or money gifted and when inheritances are received or lump sum Accommodation amounts are paid.

Help is available with July 2015 changes in means tested aged care fees

Aged care means tested fees and accommodation prices are complex.  Christine at Financial Care Services understands the Centrelink assessment of the means tested amount for aged care both home care and aged care.  Assistance with completing the Centrelink aged care means testing forms is available to clients of Financial Care Services

A consultation with Financial Care Services helps you understand your potential and aged care costs together with the Centrelink implications of rearranging your assets or selling the former home.  Call Christine on 03 9808 0338 to make an appointment for a consultation.

Financial Care Services welcomes clients from outside of Melbourne.  Please email your enquiry to receive a Financial Care Services Financial Services Guide and Aged Care Data Checklist.

Aged care means tested fees and accommodation prices are complex.
Christine at Financial Care Services understands the DVA, Disability Support and Age Pensions and the Centrelink assessment of the means tested amount for aged care both home care and residential aged care.

Assistance with completing the Centrelink aged care means testing forms is available to clients of Financial Care Services.

Independent aged care financial planning advice services

Financial Care Services is an independent financial advisory service specialising in retirees of modest means and aged care entrants. Our core values of working with clients in their lifetime financial planning supports claiming DVA and Centrelink entitlements. Financial Care Services charges fees based on the work involved in advising you about pensions and aged care financial solutions and arranging your investments.

Christine at Financial Care Services understands both the DVA and Centrelink Pensions systems and the Commonwealth aged care fee arrangements.

A consultation with Financial Care Services helps you understand your potential retirement living and aged care costs together with the DVA and Centrelink implications of rearranging your assets or selling the former home. Call Christine on 03 9808 0338 to make an appointment for a consultation.

Financial Care Services is licensed to offer investment strategy advice and to assist you to invest. Financial Care Services does not base fees on the value of your assets nor do we accept any commissions or payments from other service providers.

If you would like further confidential, independent and professional advice about DVA, Centrelink, lifestyle or financial issues please contact Christine Hopper 03 9808 0338.

Disclaimer: The information contained in this website is of a general nature only and does not constitute “financial advice”. You should obtain your own personal financial advice before investing any money or moving in to any retirement village, lifestyle community or aged care facility. Financial Care Services is licensed to provide financial advice to individual clients based on their personal situations. © 2015 Financial Care Services Pty Ltd. All rights reserved.