About Retirement Logo 3 Final White About Retirement

Benefits for Pensioners and Aged Care from Federal Budget 2020

Benefits for Pensioners and Aged Care from Federal Budget 2020

What are the benefits for Pensioners and Aged Care from the Federal Budget 2020? 

Social Security 

This year we have already seen 2 payments of $750.00

  • Now two new payments of $250 paid from
    1. December 2020 – eligibility based on 27 Nov 2020
    2. March 2021 – eligibility based on 26 Feb 2021
  • Those payments are exempt from tax
  • Not counted as income for other income support payments

If you have a Pensioner Concession Card, but you are not receiving any Age Pension that means that you lost your Age Pension on 1 Jan 2017 due to changes to the asset test, but you are still eligible for the two payments of $250.

BTW – if this is you, feel free contact me, and I will show you how to get part pension back. 

  • Pension loan scheme

Designed for asset reach and income poor retirees (eg. you own expensive home, but have not other assets that create income for you).

Even self-funded retirees might be eligible to apply and your loan is secured by your home.

A loan calculator is going to be available that will assess your eligibility and estimate loan balances.

  • Government is introducing a scheme to improve digital skills for Australians 50+
  • Improved admi for PBS (pharmaceutical Benefits Schemes) rebate receipts
  • Clients & their children stuck overseas support to bring them home – contact DFAT
  • No reduction of deeming rates – very disappointing. 
Aged Care 
  • Granny flat exemption for CGT – still in workings
  • Additional home care packages – 23,000 over 4 years from 2020-21
  • Improved transparency and regulatory standards with Covid supplement to assist residential aged care and home care providers

Royal commission is under way now in relation to the Aged Care system with more info to come in Feb 2021 

Verdict for Aged Care budget initiatives:
  • 23,000 packages, not enough, but better than nothing –
  • but only 2,000 packages of level 4 which is the highest level, this is what is most needed.
  • There is over 100,000 people on the wait list, so the demand is there, but not packages.

If you are not familiar, home care packages are designed to keep people at home, assist them with home living rather than going to the Aged Care facilities.

One of the requests was to reduce the wait for the home care package, according to Ian Henschake form National Seniors – the amount of money required to fix that was 2 to 2.5 bil
$1.6 was allocated, but over period of 4 years – this is just not good enough.

If you would like to read about the Budget’s impact on YOUR TAXclick here

If you would like to read about the Budget’s changes to SUPERANNUATIONclick here

 

by:  Katherine Isbrandt CFP®
Money Strategist & Retirement Planner
Principal of About Retirement

Say Hi on Social

Receive More Money Tips and Market Updates directly to your Inbox

Interesting Read

ebook-cover About Retirement

13 Financial Mistakes We All Make

A tiny request: if you liked this article, please share it

Most people don’t share articles, thinking that one share will not make a difference, but believe when I say, each article takes hours of putting it together, and I create them as I really want to make a difference in people’s lives.

So thank you so much for your support. Not only you will seriously help this blog to grow, but more importantly you will help people who might need this information and advice.

Some great suggestions how you can share it:

  • Pin it!
  • Share it on Facebook
  • Tweet it
  • Email to your friends and colleagues

It won’t take any more than 10 sec, as I’ve created all share buttons here for your convenience 😊

Just pick your favourite button from the left side of this post, write your note and it’s done. THANK YOU

AMP Takeover Update

AMP Takeover Update

AMP Takeover UpdateAMP Takeover Update Back in November 2020, AMP a takeover offer from the American company ARES to buy the whole AMP business.  In November 2020, I created a video and a post with a purpose to warn everyone who owns shares in AMP, who has...

read more
Catch-up Concessional Super Contributions

Catch-up Concessional Super Contributions

Catch-up Concessional Super Contributions Catch-up Concessional Super Contributions Often, when we reach the age of 50 or 60 we start to worry about our retirement. Do I have enough for my retirement? Is it too late to save sufficient balance to have safe retirement?...

read more
How to choose super fund

How to choose super fund

How to choose super fundHow to choose super fund  Let's be honest, what we all really want from our superannuation/pension fund is: lowest charges, best returns with minimum risk, super fund that looks after your interest as members, and provides you with a free...

read more

Select More Resources

News

Books

Videos

Calculators

financial mistakes

13 FINANCIAL MISTAKES WE ALL MAKE

 

Where should we send your free copy?

You have Successfully Subscribed!

Pin It on Pinterest

Share This