Currently Centrelink & DVA (Dept. Veterans Affairs) apply very generous treatment of the Pension payments received from Allocated Pensions (also known as Account Based Pensions), but this is all due to change for some people.
The Pension payment received from an Allocated Pension is not all counted as income. The Pension payment received is reduced by a “Deductible Amount” which results in little income from the Allocated pension being assessed, & sometimes none of the pension payment is counted as income at all. The benefit of this is helps increase the Centrelink & DVA Age Pension entitlement under the “Income Test” rules & helps reduce the Income Tested Fee (payable by those who entered aged care BEFORE the 1st July changes, & helps reduce the Means Tested Fee for those who entered care AFTER the 1st July.
However, Centrelink & DVA are changing the rules from the 1st January 2015. In some circumstances the Pension payment received from an Allocated Pension will be subject to the “deeming” rules, ie they will be treated the same as money in the bank or shares, consequently you may be worse off.
Who will be affected;
To find out more about how these changes may affect you Balance Aged Care Specialists is holding a series of seminars across Sydney in early November on this issue. Michael Levene (our Financial Adviser) will present the changes, & highlight how you will be affected, & clarify who will & who won’t be affected, & provide strategies to minimise the impact.
To book in call 8814-7307
Posted: 08-Oct-2014. Author: Eric Hiam
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