Volume 9 Edition 3 Financial Care Services Newsletter

Online at Permalink: https://financialcareservices.com.au/newsletters/vol-9-ed-3/

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

Volume 9 Edition 3 – 29 March 2019

Pension Indexation Increases 20 March 2019

Centrelink and DVA Pension rates increased by 1.1% on 20 March 2019. The amount of the ‘indexation’ increase is small reflecting our low inflation rate.

New maximum Age Pension payment rates

After the March 2019 indexation is applied, a single pensioner could receive a maximum fortnightly payment of $926.20.
This payment includes $843.60 of basic pension and $82.60 of Supplements.

Each member of a pensioner couple could receive a maximum fortnightly payment of $698.10.

But your payment is reduced by the Age Pension Means Tests

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.

Means Test cut offs for Single Age Pensioners

A Single Pensioner could keep her Pensioner Concession Card and receive the Pension Supplements plus one dollar per fortnight of Service or Age Pension if her Income is not more than $1,857.20 per fortnight.

But she must also satisfy the Assets Test to remain as a Pensioner. A Single pensioner may have not more than $746,300 of Assets or a ‘home’ plus $539,300 of other Assets, and still be eligible for one dollar per fortnight of Age Pension.

Means Test cut offs for Partnered Age Pensioners

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.

After the Pension increase on 20 March 2019, an Age Pensioner couple living together could have a joint Income of $2,843 per fortnight, and still be Pensioners.
An income over $73,900 per annum, has them cut-off by the Income Test from entitlement to that last one dollar per fortnight each of Service or Age Pension.
They would lose the Pension Supplement and the Pensioner Concession Card when their income exceeds $2,843 per fortnight.

A homeowner couple living together could have $810,700 of assets in addition to their home before the Asset Test excluded them from that last one dollar per fortnight each of Age Pension and the Pension Supplement.

A non-homeowner couple living together could have $1,017,700 of assets and get that last one dollar per fortnight each of Age Pension and the Pension Supplement provided that the Income Test had not excluded them from any Age Pension.

Read more about how Pensions increased on 20 March 2019

Help to understand how your situation fits in the Age Pension system

Age Pensioners who are thinking about moving out of home need to check out their situation and all of the special rules at Centrelink.

Christine at Financial Care Services writes these Newsletters. She can help you to understand your Age Pension situation.

Ask Christine to help you navigate your Age Pension challenge.

A Federal election is due soon but does auntie still know what elections are all about?

As citizens we have both the privilege and the responsibility to elect our Federal and State governments. Your next opportunity to have your say is in the Federal election due no later than May 2019.

If you have moved house recently then now could be a good time to update your Electoral Enrolment. You can get started at the Australian Electoral Commission website.

When your friend or family member no longer understands what voting is all about then you could start the process to have a name removed from the electoral roll.

You start by the printing 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.

Aged Care Fee adjustments reflecting the 20 March 2019 Age Pension increase

The Basic Daily fee for residential aged care is set at 85% of the Single rate of Pension excluding Supplements.
The March 2019 Age Pension increase is reflected in a small increase in the Basic Daily fee for residential aged care.

All aged care residents will be charged $51.21 per day for the Basic Daily Fee as from 20 March 2019. This fee is the ‘housekeeping money’ for the food, laundry, cleaning entertainment and utility bills required for aged care homes.

Aged care residents who have significant resources also pay for their personal support and nursing care. The care component cannot be more than the cost of the resident’s actual assessed level of care.

The maximum Income Tested Fee for people who entered residential aged care before July 2014 was increased to $81.34 per day from 20 March 2019.

Centrelink will recalculate the Means Tested Care Fee for later entrants based on the slightly increased changeover points.

Self-funded retirees might have a tiny reduction in their Means Tested Care fees as a result of the small indexation increase in the changeover points in the Asset and Income component calculation formulae.

The Annual Cap on Means Tested Care Fees has been increased slightly to $27,532.59 from 20 March 2019. The Lifetime Cap on Means Tested Care Fees is now $66,078.27.

Help to navigate the aged care fees and charges for residential aged care

Christine at Financial Care Services can help you with the Centrelink aged care entry challenge.

Christine at Financial Care Services understands the DVA Pensions and Centrelink assessment of the means tested amount for aged care both home care and residential aged care.

A consultation with Financial Care Services helps you understand your potential aged care costs together with the DVA and Centrelink implications of rearranging your assets, leasing or selling the former home.

Christine can Illustrate the costs of placing your family member in your preferred aged care facility. She can help you check if your family can afford that place or maybe ask for a lower Accommodation Room Price.

Christine could complete your Centrelink form ‘Permanent Residential Aged Care Request for a Combined Assets and Income Assessment SA457’ for you to sign.
She has neat handwriting just right for inserting your data into small printed spaces. 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.
Financial Care Services charges hourly rate fees for helping with Centrelink matters.

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.

Financial Care Services welcomes clients from Melbourne and beyond.
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.

______________________________

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
LinkedIn – connect https://www.linkedin.com/in/christinehopper1
LinkedIn Company – follow https://www.linkedin.com/company/financial-care-services/
Facebook Page – like https://www.facebook.com/fincareservice
Twitter Feed – follow https://twitter.com/fincareservice
Past newsletters – see http://financialcareservices.com.au/newsletters/
Newsletter – subscribe http://eepurl.com/js41T

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.