Ch-Ch-Ch-Ch-Changes To Pension and Aged Care

You know that it’s that time of year again when the stocktake sale advertisements are dominating the television and radio airwaves, organisations are scrambling to get their financial affairs in order and fund managers are driving up share market prices in order to improve their 12 month returns. But the end of financial year, or EOFY as we now like to call it in this age of increasing acronyms, also presents new changes when it comes to financial assessments for people entering the aged care system for the first time.

Firstly the Asset Thresholds for age pension assessments will change as follows.

For the first time in 12 months there will also be changes in the Income Thresholds for age pension assessments and there are changes to the Deeming Thresholds but not the associated interest rates.

Deeming Rates

In relation to Aged Care the Maximum Permissible Interest Rate has fallen from 5.78% to 5.73%.

The Home and Residential Aged Care Income Thresholds to calculate the Means Tested Care Fee have risen by less than $100 but the asset thresholds remain the same.

The Means Tested Care Fee Annual and Lifetime Caps remain the same.