by clicking the arrows at the side of the page, or by using the toolbar.
by clicking anywhere on the page.
by dragging the page around when zoomed in.
by clicking anywhere on the page when zoomed in.
web sites or send emails by clicking on hyperlinks.
Email this page to a friend
Search this issue
Index - jump to page or section
Archive - view past issues
Intouch : In Touch Winter 2014
10 In touch WINTER 2014 In the winter 2013 edition of In Touch I discussed the various fees charged by aged care facilities, depending on the level of care required and the resources of the resident. However, in June 2013, the Federal Government passed a number of laws affecting the aged care system with the objective to: - Increase the options available for those requiring aged care; - Provide fexibility and choice on how residents can pay their accommodation costs; and - Align the fees charged for aged care services more closely to individual circumstances. While these reforms affect the entire aged care system and some changes have already commenced, the key changes will affect new residents entering aged care after 1 July 2014. WHAT IS CHANGING? From 1 July, new residents will be able to elect to pay any accommodation payment of the residential aged care costs by way of a refundable lump sum (currently classifed as a bond), a periodic payment (currently referred to as a charge), or a combination of both. The current system of having payments based on the type of care (low or high level) will be removed and the resident, rather than the facility, will decide how to pay. New residents will have 28 days after entering aged care to determine how the payment will be made. Should the payment be by way of lump sum or component thereof, no retention amount can be withheld, unlike current arrangements. MINIMUM ASSET AMOUNT Residents must be left at least 2.25 times the basic age pension amount at the time of entry. This amount will be determined each quarter. PRICING OF PAYMENTS Accommodation payments will need to be published in advance from 19 May in each aged care facility website, the My Aged Care website and in written form to prospective residents and their families. The publication will be required to detail payment options for lump sum and periodic payments and a combination of both as well as a description of the key features of each type of room. Depending on the resident’s fnancial position, the Government may provide a supplement or part supplement to the facility following assessment. From 1 July, this assessment will be based on a combined income and assets test rather than just the current assets test. There are other important aspects of the changes which should be considered by prospective residents and their families, including the interaction of accommodation payments and other fees which may have a bearing on the calculation of the amount payable for accommodation. A fnancial planner with experience and expertise in aged care can provide guidance and advice on these changes. You can also contact the Centrelink Financial Information Service on 132 300. FINANCIAL ADVICE AGED-CARE ACCOMMODATION PAYMENTS CHANGES EFFECTIVE 1 JULY 2014 FOR NEW RESIDENTS. SERVICES Phillip cormack FnIA; SF Fin; ADFS (FP) Financial Planning Specialist Authorised Representative Godfrey Pembroke Limited tel: 02 9231 5611; Email: pcormack@ godfreypembroke.com.au Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Please seek personal advice prior to acting on this information. The information in this document reflects our understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. Opinions constitute our judgement at the time of issue and are subject to change. Neither, the Licensee or any of the National Australia group of companies, nor their employees or directors give any warranty of accuracy, nor accept any responsibility for errors or omissions in this document. Phillip Cormack is an Authorised Representative of Godfrey Pembroke Limited ABN 23 002 336 254, an Australian Financial Services Licensee, Registered office at 105 –153 Miller St North Sydney NSW 2060 and a member of the National Australia group of companies. Phillip has had a long association with AlzNSW as a voluntary member of its Investment Advisory Committee. The views expressed in this column are those solely of the author. UNRAVEL THE SCIENCE BEHIND DEMENTIA RESEARCH DEMENTIARESEARCHFOUNDATION.ORG.AU UNDERSTAND.DISCUSS.PARTICIPATE.
In Touch Spring 2014
In Touch Autumn 2014