Financial Care Services Newsletter
by Christine Hopper
Volume 14 Edition 12 – 20 December 2024
Christine at Financial Care Services, the specialist adviser to seniors in transition to new lifestyles
Christmas Greetings
Thank you for your support in 2024.
The team at Financial Care Services look forward to working with you in 2025.
We wish you all a very blessed Christmas and a happy and healthy 2025.
Christmas is still the same: a celebration that Christ, the Son of God, came to earth to be the perfect sacrifice for people’s offenses against God.
But how we celebrate this Christmas might be different from our past practice.
We are all one year older and possibly, slightly less robust than we were last year.
Alas covid is still lurking in our community.
You might not even realise that your minor symptoms are actually covid.
But your elders could become seriously ill if they collected covid at the family gathering.
Please prompt your elders to get their covid boosters free every six months at the local pharmacy.
In this edition some thoughts on preparing for life in the New Year
- Cheques are being phased out
- Who pays for your emergency ambulance
- Informing Centrelink of your gifts and inheritances
Cheques are being phased out, please help your grandparents set up electronic banking.
Seniors send a cheque in the mail to pay their bills, charity donations and club subscriptions because that is how responsible adults managed their financial lives in the 1970’s.
Many of us have transitioned to paying by card at the shops, buying stuff online and paying bills electronically.
OK some readers might never have seen a cheque or bought a postage stamp to send a letter via ‘snail mail’.
But some seniors still like to mail a cheques and/or pay bills over the counter with real cash.
Banks are no longer issuing cheques books to individual customers.
When their current supply of cheques is used up, a new cheque book will not be provided.
Cheques are being phased out.
The major banks are trying to phase out passbook accounts too.
But some seniors still like to mail a cheques and/or pay bills over the counter with real cash.
Before your granny panics over an unpaid utility bill, you could help her set up electronic banking.
The trusted relative, the one who is nominated in the Power of Attorney document, could accompany granny to her bank branch to establish the new online account.
Then you might need to visit granny every week whilst she learns to pay bills via BPay.
Could you help her to use a debit card at the shops and access cash from a machine.
You might need to inform Centrelink of the new bank account BSB and account number, to have her Pension paid into the new account.
You could make this change via granny’s MyGov account.
Another opportunity to assist granny: help her establish a MyGov account
To avoid disasters, please do not close an old bank account until at least one Centrelink payment has been deposited into the new account.
Think fortnights not just days for Centrelink to process a change.
Who pays when you need an emergency ambulance?
Centrelink and DVA Pensioners are not charged for emergency ambulance transport or treatment by an ambulance team when the Pensioner does not need transport.
If you do not hold a current Pensioner Concession Card or Low Income Health Card, then you are responsible for paying the full cost of your ambulance callout.
Think at least $1,200 for an ambulance to attend your home then take you to your local public hospital.
You could spread the costs of your potential emergency ambulance services by buying a subscription to your State ambulance service.
Victorian Ambulance subscriptions are one year only that means an annual payment for non-Pensioner Ambulance cover.
Emergency ambulances are for serious accidents and medical emergencies only.
The other services that provide ‘patient transport’ have different fee structures.
Please be aware that holders of the Commonwealth Seniors Health Card are not entitled to free emergency ambulance service in Victoria.
The State exemption appears to apply to all “Health Card” holders but the clarification that the Commonwealth Seniors Health Card does not count as a “Health Card” is deep in the notes.
The main benefit of holding a Commonwealth Seniors Health Card is access to PBS medications at the Pensioner concession prices.
The Commonwealth Seniors Health Card is for seniors who are excluded from the Age Pension by the Asset and/or the Income Test.
The Commonwealth Seniors Health Card has no Asset Test just an Income Test that is more generous than the Age Pensioner Income Test.
Christine at Financial Care Services could help you claim the Commonwealth Seniors Health Card when you reach your Age Pension Age.
Updating Centrelink about your gifts and inheritances
Centrelink are interested in the gifts that you give
Centrelink clients are usually quick to inform Centrelink when their bank balances decline significantly.
Remember that gifts totalling less than $10,000 in any financial year and/or $30,000 in any rolling five-year period are no longer counted in your assets; these are exempt gifts.
But you need to inform Centrelink of your big gifts.
Any part of a gift that exceeds the exempt gifting limits will be recorded as an ‘excess gift amount’.
Remember that Centrelink will count your excess gift amounts as part of your ‘assessable assets’ for five years after the date of that gift.
Centrelink are interested in any large gifts or inheritances that you receive
Any gifts and bequests that you receive are not counted as part of your ‘assessable income’ income at Centrelink.
But receiving a substantial gift could significantly increase your ‘assessable assets’.
Therefore, you are expected to inform Centrelink when you become entitled to a substantial gift or inheritance.
Inheritances are counted from when you could have the use of the bequeathed asset.
For example, if you inherit a share of an estate that includes your parents’ home then Centrelink could count your portion of the property in your ‘assessable assets’ as soon as probate is granted on the Will.
If you live in that property, then you could inform Centrelink of your ‘homeowner’ status.
But if the property does not become your ‘principal residence’ then you must inform Centrelink of your newly acquired asset.
Centrelink would not ignore your interest in the property just because another relative occupies the property whilst you live somewhere else.
A lawyer could help you with transferring ownership of inherited property.
About Christine at Financial Care Services
Christine at Financial Care Services writes these Newsletters.
Christine Hopper of Financial Care Services helps clients navigate the Centrelink Age Pension Claim process.
She can help you to understand your Age Pension and/or Seniors Health Card situation.
Christine Hopper of Financial Care Services offers ‘personal factual financial information’ in the form of an Illustration of the amount of Centrelink Age Pension you could receive today provided that you satisfied the age and residency conditions for a Centrelink Age Pension.
Christine also helps families understand the financial costs of placing a senior into residential aged care.
Christine at Financial Care Services charges hourly rate fees for helping with Centrelink matters.
Christine at Financial Care Services is an independent advisory service specialising in retirees of modest means and aged care entrants.
Our core values of working with clients in their lifestyle transitions supports claiming DVA and Centrelink entitlements.
To make an appointment for confidential, independent and professional advice about aged care, retirement lifestyle or Centrelink issues please contact Christine Hopper or call +61 3 9808 0338.
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Christine Hopper
Financial Care Services
Independent aged care, strategic lifestyle and Social Security advice for seniors in Melbourne, Victoria, Australia
Telephone – call +61 3 9808 0338
Email – contact Christine@financialcareservices.com.au
Address – mail to 2B Thomas Street, Camberwell Victoria 3124
Website – visit financialcareservices.com.au
LinkedIn – connect https://www.linkedin.com/in/christinehopper1
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.
© 2024 Christine Hopper @ Financial Care Services. All rights reserved.