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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

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