I have spoken to Centrelink regarding the supposed increase in the work bonus, but apparently there is no increase for me.
I am told by one person at Centrelink that there is only an additional $4000 starting balance for new pensioners, not for me as I use my $300 work bonus fortnightly. Just wondering if someone could explain to me how it is actually calculated.
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Answer:
John Perri, of AMP Technical, explains that the work bonus of $300 a fortnight has not increased. Instead, the unused amount of that bonus which can be accumulated, also referred to as the 'work bank', which previously was a maximum of $7800, has now increased to $11,800. In addition, new age-pensioners after January 1, 2024 will automatically have a work bank of $4000.
This does not apply to you as you have been in receipt of the age pension prior to January 1, 2024.
I live in a retirement village and my wife has been moved into aged care. Her income has been assessed at $39,000 a year and her assets have been assessed at $163,000. We have been advised that the fees for the home are a basic daily fee of $60.86 and accommodation contribution $60.55. I think it's unfair that she is expected to pay almost $45,000 a year on an income of $39,000. Would appreciate your comments.
Answer:
Aged Care Guru Rachel Lane explains that it is a common misunderstanding that because aged care is means-tested it will be affordable. As a member of a couple your wife will be assessed based on half of your combined assets and income, your home in the retirement village is exempt from the assessment.
People who receive the full age pension and have assets below $58,500 have their accommodation cost met by the government. Once your wife's share of income exceeds $31,707 a year or her assets exceed $58,500 (or both) she will start paying a contribution towards her cost of accommodation and care.
In your case, your wife is a low means resident, the assets above $58,500 are having an accommodation contribution charged at 17.5 per cent and the income above $31,707 is having an accommodation charged at 50c in the dollar.
Some simple strategies such as gifting within the allowed limits, pre-paying your funeral expenses or purchasing a funeral bond and making sure you are using the second-hand value of your personal assets could substantially reduce this cost. Seeking advice about purchasing an income stream with an asset test exemption could also be beneficial.
For example, if your wife's assessable assets were to reduce by $50,000 the daily accommodation contribution would reduce by $8750 a year.
Send your finance-related questions to edit@thesenior.com.au
