Volume 8 Edition 8 Financial Care Services Newsletter

Online at Permalink: https://financialcareservices.com.au/newsletters/vol-8-ed-8/ ‎

Financial Care Services Newsletter by Christine Hopper

Financial Care Services, the specialist adviser to seniors in transition to new lifestyles

Volume 8 Edition 8 – 30 August 2018

Spring is coming together with the election season

Voting at Federal and State elections is both a privilege and a responsibility of every Australian citizen. You are responsible for your enrolment for your current residential address. The Australian Electoral Commission “AEC”, maintains the electoral rolls and manages our elections.

Updating your details to be on the electoral roll at your correct address

If you move home then it is your responsibility to re-enrol with the AEC, at your new residential address. Therefore you need to re-enrol if you have entered a retirement lifestyle community village or adopted your former holiday house as your principal residence.

The change of address can be achieved online if you have a current Driver Licence. Just go the AEC Change Address form.

If you are without a current Driver Licence then you can use your Passport number instead. The form needs to be printed and signed with real ink if you are using your Passport for identification.

If you have neither current Driver Licence or Passport then you need to have your Change of Address form witnessed by another elector. This option means that you need to print off the form and then sign your paper form and have another elector sign that they witnessed your signature.

Removing names from the electoral roll

While updating your own enrolment sounds straight forward removing someone’s name from the electoral roll is complicated because Australian citizens cannot exclude themselves.

The State Registrars of Deaths inform the AEC about people who die within Australia.
The family only need to report to the AEC if a citizen dies whilst travelling outside of Australia. The easy way to inform the AEC is to use its Notification of Death form.

A more challenging situation arises when a family member is still breathing but no longer understanding what elections are all about. You need to print off the AEC form for removal of a name from the electoral roll. The AEC requires this form to be signed off by a medical practitioner who knows the person. The doctor’s signature is mandated so that you cannot have great aunt Maud removed from the electoral roll to reduce the votes to her favourite political party.

Deemed financial income at Centrelink

At Centrelink, the Income Tests for Age Pension and DSP use your deemed financial income rather than your actual income from financial assets.
The calculation of your deemed financial income is based on the current Centrelink formula and the value of your ‘financial assets’.

Step 1 of the deemed financial income calculation is to determine if you are a single person or a member of a couple at Centrelink.

If you are a member of a couple at Centrelink, you must use the total value of all of the financial assets of your partner and yourself in the ‘couples’ formula for the deemed financial income calculation.
If you are a single person not a member of a couple at Centrelink, then you just use the amount of your own financial assets in the single, non-partnered formula for the deemed financial income calculation.

Step 2 is to value all of your ‘financial assets’ for Centrelink purposes.

Remember Centrelink will count as yours any assets that you have a beneficial interest in. Thus Centrelink will count as yours any assets that you hold in a private company or trust structure. Also included in your financial assets are any inheritances that are ready to be paid to you.

Your financial assets at Centrelink includes many assets that are easily recognised as financial investments. Bank accounts, units in managed funds and listed securities such as shares, option contracts and debentures are all ‘financial assets’ at Centrelink.

For the purposes of calculating your deemed financial income, your financial assets include any holdings of gold bullion or other precious metals, many life insurance policies, most superannuation account balances and some funeral bonds. Centrelink also count your ‘excess gift amounts’ as financial assets for five years from the date of the excess gift.

Step 3 is to calculate your annual rate of deemed financial income using the current Centrelink formula

As from July 2018, the annual rate of deemed financial income is calculated as 1.75% of the first $51,200 of financial assets plus 3.25% of any additional financial assets for a single person.

Thus for a single person with no more than $51,200 of financial assets the deemed financial income is 1.75% of her financial assets.
For a single person with over $51,200 of financial assets the deemed financial income is 1.75% of the first $51,200 plus 3.25% of her financial assets in excess of $51,200.

Consider Betty, a single Age Pensioner who has $84,000 of financial assets. Betty’s annual rate of deemed financial income in August 2018, is calculated as
1.75% of $51,200 plus 3.25% of ($84,000 less $51,200)
That is, 1.75% of $51,200 plus 3.25% of $32,800
$(896+1,066) equals $1,962
Thus at Centrelink Betty has an annual deemed financial income of $1,962 per year in August 2018.

For a couple at Centrelink, the annual rate of deemed financial income is calculated as 1.75% of the first $85,000 of financial assets plus 3.25% of any additional financial assets.

Centrelink reassessments of your deemed financial income

Centrelink calculate the deemed financial income for Age Pensioners based on the asset and income details submitted by the Age Pensioners. Therefore you can expect Centrelink to recalculate your deemed financial income every time you update your financial asset amounts.

Centrelink will also recalculate your deemed financial income amount whenever the deemed interest rates change or the changeover asset levels change. The changeover asset levels are usually increased slightly each July.

Help with navigating the Age Pension system

Christine at Financial Care Services understands many of the Centrelink rules about Age Pensions. Christine could help you check your entitlements and estimate your Age Pension.

Contact Christine to arrange a consultation for ‘personal financial factual information’ about your potential Age Pension. Checking your financial eligibility for the Age Pension before you apply for an Age Pension or Commonwealth Seniors Health Card could spare you a rejection letter from Centrelink.

Christine could also assist you with collating your personal data, estimating how much Pension you could expect to receive and completing the Centrelink forms for you to sign. Normal hourly rate consultation fees apply for assistance with personal data collation, completing Centrelink forms and attendance at a Centrelink office with you.

Call Christine at Financial Care Services now on 03 9808 0338 to start thinking through your potential for an Age Pension.

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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 Financial Care Services, the specialist adviser to seniors in transition to new lifestyles.

To arrange an appointment for further confidential, independent and professional advice about DVA, Centrelink, lifestyle or aged care issues please contact Christine Hopper 03 9808 0338.

Financial Care Services 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, 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
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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.