By Thomas Kidd
In February 2021, the final report from the Royal Commission into Aged Care Quality and Safety was released. The report highlights a number of problems facing older Australians that became key issues in the 2022 election campaign, with many policy proposals put forward from both of the major parties. Below, we list some of the key policy changes that have since come into effect.
Commonwealth Seniors Health Card - income limits for the CSHC have increased to $90,000 for an individual or $144,000 for a couple. The government estimates this will allow approximately 50,000 older Australians to apply for this benefit.
Work Bonus - for the 2023 calendar year, the maximum Work Bonus has been increased by $4,000. This increases the amount age pensioners are able to earn without reducing their age pension payments.
Downsizer contribution age - the eligible age for downsizer contributions has decreased from 60 to 55. This benefit allows people selling their home to contribute a significant portion to their super fund to access tax-advantaged investments.
Principle home sale proceeds exemption – the existing asset test exemption for home sale proceeds that a person intends to use for purchasing a new home has been extended from 12 to 24 months. Additionally, these funds will be subject to the lower deeming rate only for income testing purposes.
Aged care star ratings launched – star ratings for Aged Care facilities have been introduced to assist those seeking these services to make informed decisions. The star ratings are based on four sub-categories: Compliance, Residents’ Experience, Staffing and Quality Measures.
Home care charges capped – to help keep Aged Care services affordable, a number of administrative costs have been capped. In addition to reducing the cost for consumers, this helps to standardise pricing across the industry, making it easier to compare different facilities.
Thomas Kidd in an authorised representative of Alliance Wealth Pty Ltd. (AR: 001292328)