Volume 10 Edition 3
Financial Care Services Newsletter
Volume 10 Edition 3 – 31 March 2020
Financial Care Services, the specialist adviser to seniors in transition to new lifestyles
March 2020 Age Pension Indexation increase
Centrelink and DVA Pension rates increased on 20 March 2020. The amount of the ‘indexation’ increase is small reflecting our low inflation rate.
After the March 2020 indexation is applied, a single pensioner could receive a maximum fortnightly payment of $944.30. This payment includes $860.60 of basic pension and $83.70 of Supplements.
Each member of a pensioner couple could receive a maximum fortnightly payment of $711.80.
The actual amount that an individual pensioner is paid is subject to the pension Means Tests. Centrelink work out the reduction that could be applied to you under the Assets Test and, separately, under the Income Test. Then Centrelink apply whichever Test generates the lowest pension payment to you.
Single Age Pension means test cut-off levels
A Single Pensioner could keep her Pensioner Concession Card and receive the Pension Supplements plus one dollar per fortnight of Pension if her Income is not more than $1,893.20 per fortnight.
But she must also satisfy the Assets Test to remain as a Pensioner. A Single pensioner may have not more than $760,200 of Assets or a ‘home’ plus $549,700 of other Assets, and still be eligible for one dollar per fortnight of Age Pension.
Age Pension means test cut-off levels for members of a couple at Centrelink
The Means Tests for ‘couples’ count all of the Income and all of the Assets that the couple have. Centrelink use the ‘total’ amounts for the couple; mine, yours, ours are all included without distinction.
Remember that at Centrelink and DVA, a couple is any two adults who share domestic arrangements and present socially as ‘a couple’. You cannot be treated as a ‘single’ at Centrelink just because you and your domestic partner keep your finances separate.
A member of a couple at Centrelink is paid at the lower ‘partnered rate’ of Age Pension. A couple living together share domestic arrangements. Thus each member of the couple is assumed to incur lower per person costs for running a household. But some items are not shared. Mostly we each like to eat a full meal not just half a serve each. There are exceptions particularly when considering rich deserts.
A Pensioner member of a couple could keep her Pensioner Concession Card and receive the partnered rate of Pension Supplements plus one dollar per fortnight of Pension if the total income of the couple is not more than $2,898.80 per fortnight.
But they must also satisfy the Assets Test for her to remain as a Pensioner. The Asset Test allows a member of a couple to still be eligible for one dollar per fortnight of Age Pension if the couple have not more than $1,036,800 of Assets or a ‘home’ plus $826,300 of other Assets.
Once one member of a couple enters permanent residential aged care they become a ‘couple separated by illness’ for Centrelink. Each member of a ‘couple separated by illness’ could be paid the single person rate of Age Pension but the amount is adjusted under the Income Test and Asset Test for the couple.
Financial Care Services is still open for business.
Financial Care Services is a ‘home based’ business. Christine your adviser at Financial Care Services is in good health and ready to help you.
We might not be able to have face to face family meetings. But we can still guide you to understanding the costs of aged care for your family.
Family meetings can be held by telephone or internet. Your ‘Illustrations of aged care costs’ can be emailed to you together with the explanatory Notes prior to your distance consultation. One member of your family might be able to attend the family consultation meeting in person. Additional family members could join in the discussions from a distance.
Additional spending money
A single lump sum payment of $750 is on its way to each person living in Australia who held a Pensioner Concession Card or a Commonwealth Seniors Health Card on 12 March 2020.
Please spend this money in your local community to help your local businesses through these challenging times.
If you do not actually need this money now you could use some of it to help others who really are struggling. Charities are needing more cash donations to provide basic support to people within our own communities.
You can read the full list of Centrelink and DVA customer groups who are eligible for this one off payment.
Claiming the Commonwealth Seniors Health Card
The Commonwealth Seniors Health Card is available to Australian citizens who have attained Age Pension Age but are excluded from the Age Pension by the Assets Test and/or the Income Test.
You must satisfy an Income Test for the Commonwealth Seniors Health Card. To be eligible for the Commonwealth Seniors Health Card your annual ‘adjusted taxable income’ must not exceed the current cut-off level.
As from 20 September 2019, the ‘adjusted taxable income’ limit for a single person to hold a Commonwealth Seniors Health Card is $55,808 for a financial year.
The total combined ‘adjusted taxable income’ of the couple is used for the Income Test for the Commonwealth Seniors Health Card for a member of a couple at Centrelink. The total combined annual ‘adjusted taxable income’ of the couple must not exceed $89,290 for either or both members of the couple to hold a Commonwealth Seniors Health Card.
The definition of ‘adjusted taxable income’ for the Commonwealth Seniors Health Card is complex. You start with the taxable income that you report to the ATO and then add on some income tax exempt items. The main adjustments relate to superannuation income payments, negatively geared investments and ‘fringe benefits’ or additional superannuation contributions provide by your employer.
You can claim directly using the Centrelink form sa296 . Once your form is complete you will need to prove your identity to Centrelink.
Alternatively you can make an appointment with Christine at Financial Care Services if the Centrelink claim process for Commonwealth Seniors Health Card overwhelms you.
Christine at Financial Care Services your independent adviser
Financial Care Services is an independent advisory service specialising in retirees of modest means and aged care entrants.
Our core values include working with clients in claiming DVA and Centrelink entitlements.
The team at Financial Care Services are here to answer your Age Pension questions and guide your understanding of aged care costs.
Help with Centrelink challenges is available from Christine Hopper at Financial Care Services, the specialist adviser to seniors in transition to new lifestyles.
Christine has neat handwriting just right for inserting your data into small printed spaces. She helps clients complete Centrelink forms.
Christine could help you with collating your supporting documents and then mailing your form to Centrelink.
Assistance with completing the Commonwealth aged care means testing forms is available to clients of Financial Care Services.
Christine charges fees based on the work involved in advising you about pensions and aged care fee solutions.
To make an appointment for confidential, independent and professional advice about aged care, retirement lifestyle costs, granny flat or Age Pension issues please contact Christine Hopper or call +61 3 9808 0338.
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Christine Hopper
Financial Care Services Pty Ltd
Independent aged care, strategic lifestyle and Social Security advice for seniors in Melbourne, Victoria, Australia
Telephone – call +61 3 9808 0338
Email – contact info@financialcareservices.com.au
Address – mail to 172 Warrigal Road, Camberwell Victoria 3124
Website – visit financialcareservices.com.au
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Past newsletters – see http://financialcareservices.com.au/newsletters/
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Disclaimer: The information contained in this newsletter is of a general nature only and does not constitute “financial advice”.
All eligibility for Commonwealth benefits will be determined by Centrelink or DVA, based on your personal position as documented and the legislation and Regulations in force at that time.
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