Financial Care Services Newsletter

by Christine Hopper
Volume 13 Edition 9 – 30 September 2023

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

Increases in Centrelink Pensions and Allowances

The full rates of Centrelink Pensions were increased by 3.2% effective 20 September 2023.

The Basic Fee for residential aged care has been increased at a similar rate.

The September 2023 indexation adjustment to Centrelink Pensions of 3.2% is slightly higher than expected.

The Consumer Price Index increased by 2.2% over the six months to June 2023.
Thus an increase of 2.2% has been applied to the Pension Supplements effective from 20 September 2023.
The Clean Energy Supplements have not been adjusted but remain fixed in dollar terms.

Single person Age Pension rates effective 20 September 2023

The Single person full rate of Age Pension increased to $1,002.50 per fortnight.
The total Single person rate of Pension Supplements including the Clean Energy Supplement, increased to $94.20 per fortnight.
Thus, the maximum payment to a full rate Single person Age Pensioner is now $1,096.70 per fortnight.

But if your other income exceeds $204 per fortnight, then the Income Test would reduce your Single rate of Age Pension.
The Income Test would exclude you from any Age Pension if your other income exceeded $2,207.00 per fortnight, $57,380 per year.

The Asset Test would exclude a Single homeowner from any Age Pension if her other assets exceeded $635,500.
A Single non-homeowner would not be excluded from the Age Pension, by the Asset Test until her assessable assets exceeded $877,500.

Remember you cannot be a ‘single’ person at Centrelink if you live with a ‘domestic partner’.

Partnered Age Pension rates effective 20 September 2023

The full rate of Age Pension for a member of a couple living together increased to $755.70 per fortnight together with Pension Supplements of $71.00 per fortnight.
Thus the maximum payment to an Age Pensioner member of a couple has increased to $826.70 per fortnight.

The Income Test reduces the payment rate for a partnered Age Pensioner once their total combined income exceeds $360 per fortnight.
No Age Pension is payable to a partnered Age Pensioner if the total combined income of the couple exceeds $3,378.80 per fortnight $87,800 per year.

The Asset Test excludes from the Age Pension seniors living with a partner once their total combined assets exceed $954,600 in addition to their home or $1,196,600 if they are non-homeowners.

Remember, Centrelink count all of the income and assets of the couple even if one of the partners does not satisfy the age or residency requirements for an Age Pension.

Updating Centrelink is your responsibility

Remember you are responsible for updating Centrelink whenever your income or asset position changes significantly.

Think: an additional $10,000 of assets or an additional source of income.

You also need to inform Centrelink about any changes in your personal circumstances.
Think: you start living with a new partner.

Centrelink are required to retrieve overpayments of Pensions.
Therefore, prompt notification of changes in your financial position plus full details of any property sales, helps keep your payment rates correct.

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 Christine at Financial Care Services for the Age Pension Illustration Personal Data form as a checklist of essential data and then arrange for a ‘$99 Special Age Pension Illustration Short Consultation’ with Christine Hopper of Financial Care Services.

If the Income and/or Assets Tests would exclude you from the Age Pension, Christine could help you check whether you would qualify for the Commonwealth Seniors Health Card.

Alas holders of the Commonwealth Seniors Health Card do not qualify for the full range of concessions that come with the Pensioner Concession Card.

Christine Hopper of Financial Care Services offers Short Consultations for ‘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.

Longer consultations are possible for seniors who want more scenarios and/or explanations of complex situation. Hourly rate fees are charged for these longer consultations.

Contact Christine at Financial Care Services to obtain the Age Pension Illustration Personal Data form.
You will also receive her Client Services Guide that provides essential information about Christine Hopper of Financial Care Services.

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 Updates

The Income Limits for Commonwealth Seniors Health Card holders increased on 20 September 2023.

A single senior may have an adjusted taxable income below $95,400 before the Income Test excluded her from the Commonwealth Seniors Health Card.

A couple living together are allowed a total combined adjusted taxable income of $152,640 before the Income Test excluded them from the Commonwealth Seniors Health Card.

If at least one member of the couple is receiving residential aged care, or their partner is in prison, then they may have a total combined adjusted taxable income of $190,800 before the Income Test excluded them from the Commonwealth Seniors Health Card.

These cut-off limits for adjusted taxable income of the Commonwealth Seniors Health Card were increased by 6% on 20 September 2023.

The Commonwealth Seniors Health Card is not subject to an Asset Test.

New Commonwealth Seniors Health Cards are potentially valid for longer.

Prior to September 2023, Commonwealth Seniors Health Cards expired on the next 30 September.
Ongoing Commonwealth Seniors Health Card holders all received their new Commonwealth Seniors Health Cards each September.

But the Commonwealth Seniors Health Cards issued this month are for at least a full year.
These Commonwealth Seniors Health Cards have expiry dates at the end of the month of your birthday.
A senior with an April birthday just received a Commonwealth Seniors Health Card with an expiry date of 30 April 2025.

Changing circumstances could have your Commonwealth Seniors Health Card cancelled.

The deferring of the expiry date on your Commonwealth Seniors Health Card does not guarantee an extended validity period.
Centrelink check that your adjusted taxable income remains below the cut-off level each time you lodge an Income Tax Return.
In addition, you must inform Centrelink of any change in your personal circumstances or any new sources of income.
Centrelink are also very interested in any changes to allocated pension accounts that you started before 2016.
Centrelink describe allocated pension accounts as ‘account-based income streams’.

Energy Rebates for Commonwealth Seniors Health Card holders

New for 2023 are $250 energy rebates for Commonwealth Seniors Health Card holders.

You can claim the Commonwealth energy rebate via the Centrelink part of MyGov.
First you need a MyGov account.
Then you need to link your Centrelink account to your MyGov account.

Finally, you can click on Energy Rebates within the Commonwealth Seniors Health Card part of your Centrelink account.
Then you select your energy, or electricity, provider and insert your energy account details.

Yes, you do need an account in your name for your residential address as recorded with Centrelink, in order to claim the rebate.

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.