Financial Care Services Newsletter

by Christine Hopper
Volume 13 Edition 3 – 31 March 2023

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

March 2023 Age Pension Indexation increase

Centrelink and DVA Pension rates increased by 3.7% on 20 March 2023.
The amount of the ‘indexation’ increase is significant reflecting our recent inflation rate.

After the March 2023 indexation is applied, a single pensioner could receive a maximum fortnightly payment of $1,064.00.
This payment includes $971.50 of basic pension and $92.50 of Supplements.

Each member of a pensioner couple could receive a maximum fortnightly payment of $802.00.

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 $2,131.00 per fortnight.

But she must also satisfy the Assets Test to remain as a Pensioner.
A Single pensioner may have not more than $828,000 of Assets or a ‘home’ plus $603,500 of other Assets, and still be eligible for one dollar per fortnight of Age Pension.

Age Pensions 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; yours, mine and 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.

Age Pension means test cut-off levels for members of a couple at Centrelink

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 $3,261.20 per fortnight.

But the couple must also satisfy the Assets Test for a couple in order 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 $1,131,000 of Assets or a ‘home’ plus $906,500 of other Assets.

Age Pensions for members of a couple separated by illness at Centrelink

Once one member of a couple enters permanent residential aged care they become a ‘couple separated by illness’ for Centrelink purposes.
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.

Aged Care Fee increases reflect Age Pension indexation

The Basic Daily Care Fee for residential aged care is set as 85% of the single rate of Age Pension.

Thus, the Basic Daily Care Fee increased to $58.98 per day effective from 20 March 2023 to reflect the increased Age Pension rate.

Your means tested aged care fees could also change on 20 March 2023.
The threshold amounts in the means tested amount calculation were increased effective 20 March 2023.
If your income and asset position has not changed your means tested care fee might reduce slightly.

The Annual Cap and the Lifetime Cap on means tested care fees moved higher on 20 March 2023.
These increases were similar to the Age Pension indexation rate.

You will be informed of any changes in your means tested care fees.

Christine at Financial Care Services your independent adviser

Christine at Financial Care Services is an independent adviser specialising in retirees of modest means and aged care entrants.
Our core values include working with clients in claiming DVA and Centrelink entitlements.

Christine at Financial Care Services is here to answer your Health Card and 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 Age Pension, Low Income Health Card and Commonwealth Seniors Health Card Claims and the Commonwealth aged care means testing forms is available to clients of Christine at Financial Care Services.

Christine charges fees based on the work involved in advising you about health cards, 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
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.