Financial Care Services Newsletter
by Christine Hopper
Volume 14 Edition 9 – 30 September 2024
Christine at Financial Care Services, the specialist adviser to seniors in transition to new lifestyles
Spring time is indexation increase time at Centrelink
The Commonwealth increased the full rates of income support benefit Pensions by 2.6% on 20 September 2024.
Thus, the Centrelink Age Pension, Disability Support Pension and Carer Payment rates of benefit and the Pension Supplements were increased.
The DVA Service Pension is payable at the same rates as the Age Pension.
Therefore, DVA Service Pensioners and War Widows also had their pension rates increased.
Age Pensions for single, non-partnered, seniors
The maximum Age Pension payment for a single, non-partnered, person is now $1,047.40 per fortnight.
If you receive at least one dollar per fortnight of Pension then you would also receive the Pension Supplements.
The Pension Supplements currently total $97.30 per fortnight for a single pensioner.
From 20 September 2024, a single Age Pensioner would need to have an income over $2,304 per fortnight, $59,900 per year, before the Income Test cut-out her final one dollar per fortnight of Age Pension and all of the Supplements.
If a single senior had assets of $662,700 in addition to her home, then the Asset Test would exclude her from any Age Pension.
A single non-homeowner with assets of $914,700 could get one dollar per fortnight of Age Pension in October 2024, plus all of the Supplements provided that she was not excluded by the Income Test.
Please be aware that the Pension you receive is the lower amount after checking against the Income Test and the Assets Test.
Remember that you cannot be paid at the single pensioner rate if you have a domestic partner.
Read more about who is a couple at Centrelink.
Age Pensions for partnered seniors
If you have a domestic partner then Centrelink will treat you as a member of a couple even if your domestic partner does not yet satisfy the age and Australian residency conditions for an Age Pension.
As from 20 September 2024, a member of a couple could receive a maximum Age Pension of $789.30 per fortnight plus the Pension Supplements of $73.30 per fortnight.
After the Pension increases 20 September 2024, an Age Pensioner couple living together could have a joint Income of $3,525 per fortnight, $91,600 per annum, and not be cut-off by the Income Test from entitlement to that last one dollar per fortnight each of Age Pension and the Pension Supplements.
A homeowner couple living together could have $995,500 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 Supplements.
A non-homeowner couple living together could have $1,247,500 of assets and get that last one dollar per fortnight each of Age Pension and the Pension Supplements, provided that the Income Test had not excluded them from any Age Pension.
Once one member of a couple has entered residential aged care they are treated as a ‘couple separated by illness’ at Centrelink.
Each member of a ‘couple separated by illness’ is entitled to the single rate of Age Pension and Pension Supplements, but adjusted according to the couples means test.
Help to understand how your situation fits in the Age Pension system
The calculation of your Age Pension amount, if any, can be challenging.
The easy route is to ask for the Age Pension Illustration Personal Data form as a checklist of essential data and then arrange for a ‘Age Pension Illustration Short Consultation’ with Christine Hopper of Financial Care Services.
Christine at Financial Care Services writes these Newsletters.
She can help you to understand your Age Pension 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.
Contact Christine at Financial Care Services to obtain the Age Pension Illustration Personal Data form.
You will also receive our Client Services Guide that provides essential information about Christine Hopper at Financial Care Services.
Christine at Financial Care Services charges hourly rate fees for helping with Centrelink matters.
Alternatively, you could search through the Centrelink website for clues about Pension rates and means tests then do the sums yourself.
Commonwealth Seniors Health Card
If you have reached your Age Pension Age but are excluded from the Age Pension then you might qualify for the Commonwealth Seniors Health Card.
The Commonwealth Seniors Health Card provides similar pharmaceutical concessions to the Pensioner Concession Card.
Commonwealth Seniors Health Card holders could also pay lower fees for radiology services; you are more likely to have your scans and x-rays bulk billed.
You must be living in Australia to hold or utilise, a Commonwealth Seniors Health Card.
The Commonwealth Seniors Health Card is available to Australians with moderate incomes who have attained Age Pension Age.
The Residency requirement for a Commonwealth Seniors Health Card is four years as a citizen or ‘Permanent Resident’ of Australia.
New Australian residents could qualify for the Commonwealth Seniors Health Card well before they complete the Age Pension requirement of ten years as a citizen or ‘permanent resident’ of Australia that must include an uninterrupted stay of five full years.
There is no Assets test for the Commonwealth Seniors Health Card only an Income Test.
The Commonwealth Seniors Health Card Income Test requires that the applicant’s “adjusted taxable income” must not exceed the current Income Test limits.
This “adjusted taxable income” is similar to your taxable income but with some additional items included.
Commonwealth Seniors Health Card Income Test increase in allowable income
As from September 2024, the Commonwealth Seniors Health Card Income Test limit is an adjusted taxable annual income not exceeding $99,025 if you are single.
If you are a member of a couple then you will be assessed against your total combined income even if your partner is too young for a Seniors Health Card.
The Commonwealth Seniors Health Card Income Test limit is a combined adjusted taxable annual income not exceeding $158,440 for a couple at Centrelink.
Remember that at Centrelink, a couple is any two adults who share domestic arrangements and present socially as a couple.
A higher income limit of $198,050 of combined annual adjusted taxable income applies to couples who are separated by illness or who have one partner in prison.
As soon as one partner moves out of home to respite or permanent aged care or prison, then the couple are treated as being separated by illness.
Help is available.
Christine at Financial Care Services is experienced with Centrelink Pension Applications and the many Centrelink financial means tests.
Christine offers ‘personal financial factual information’ Consultations to help you check your asset and income position against the means tests for an Age Pension, DSP or a Carer Payment.
If you think that you might be eligible for a part Pension or Carer Payment, you can call Christine on 03 9808 0338 to arrange a Short Consultation, 30 minutes in person or by telephone, to discuss your potential means tested Pension amount.
You can start the Short ‘personal financial factual information’ Consultation by emailing Christine for her Client Services Guide and Age Pension and CSHC Data form.
Indexation adjustments to aged care fee scales.
The Basic Daily fee for residential aged care is set at 85% of the single rate of Age Pension.
The Basic Daily fee increased to $63.57 per day effective from 20 September 2024.
The 2.6% increase in the Age Pension is reflected in minor adjustments to the changeover points in the aged care means tested amount formula.
Centrelink will advise you if your means tested care fee amount is changing.
Also increased slightly were the Annual and Lifetime caps on the amounts of means tested care fees payable by an individual recipient of Commonwealth subsidised residential aged care.
Help with understanding aged care fees and charges is available.
Christine at Financial Care Services could Illustrate the potential costs of placing a family member in your preferred residential aged care home.
Before you sign up for an aged care place, consult Christine to check the likely fees and charges for that placement.
You can start the Aged care entrant Consultation by emailing Christine for her Client Services Guide and Aged Care Checklist form.
Consultations can be arranged at short notice to assist families needing immediate entry to residential aged care.
Contact Christine at Financial Care Services to arrange for an aged care entry consultation.
Spring cleaning to enhance safety
Spring cleaning at home could ensure that you can stay at home for another year.
To keep your outdoor spaces safe for seniors, you could weed the paths, wash off the winter moss and trim those overhanging branches.
While you are thinking about safe access, consider if your seniors need a ramp to the front porch rather than those steep steps.
Maybe a handrail would make access easier for tired limbs.
White lines on the front edge of dark steps help our vision impaired friends.
Reducing the risk of missing that last step could save anyone a nasty fall and a fractured limb.
Spring cleaning inside the home could remove potential poisons from forgetful seniors and inquisitive grandchildren.
Childproof medication boxes could deter access to everyday pills.
Medications for occasional use could be stored in a locked box until their occasion arises.
A big red toolbox with a combination lock keeps our medications away from unauthorized hands.
Spring cleaning to declutter a senior’s home could cause significant grief and losses.
Some items might appear to be clutter.
But these could be valued by a senior as reminders of family, travels and careers.
Before you throw out anything, check the contents for valuables.
Maybe there is cash between the pages of those books.
Diligent family members have found cash under the lining of pantry shelves, in the pockets of old coats, within the velvet covers on lounge cushions and in biscuit tins in the kitchen.
Out in the shed, cash and medals were hidden in jam tins and under ‘junk’.
About Christine at Financial Care Services
Christine at Financial Care Services understands the Centrelink system for assessing means tested aged care fees and Pensions.
Christine at Financial Care Services works with families to clarify the costs for their family member to enter residential aged care.
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.
Christine at Financial Care Services charges fees based on the work involved in advising you about pensions health cards and aged care costs.
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.