How do they determine the cost of aged care
I HAVE a query regarding the means tested care fee for residential care.
On the “My Aged Care” website, it states that the amount a person needs to pay will depend on their financial situation as well as the cost of their care.
How does the government determine the cost of a person’s care?
The cost of care is the amount of funding the facility would receive from the government. The facility cannot get more from the resident than they would from the government.
For example, if the calculated means tested care fee was $ 200 a day but the amount of funding the facility was going to get from the government was $ 100 a day, then the means tested care fee would be capped at $ 100.
The cost of care is calculated based on the person’s care needs.
I AM 76 and my main asset is the family home. In the future, I will need to move to a smaller dwelling. If I sell the family home before buying a smaller dwelling ( in order to avoid undue pressure to sell under a reasonable figure) there may be a short period of time when I have no principal place of residence, which is exempt from capital gains tax.
In the unlikely ( but possible) event that I died in this short time between selling and buying, is there any special provision that allows for protection for this CGTfree status?
My estate is left to my two sons and will be largely dependent on the tax- free status of the principal place of residence.
I am anxious to preserve as much value as possible for them after I die.
When you sell the first property, the proceeds will be eligible for the capital gains tax exemption and, I assume, will be placed in the bank.
If you die before you use these funds to buy another residence there will be no capital gains tax payable by your beneficiaries as the funds in the bank have come from the proceeds of an exempt asset.
WE intend changing the trustee structure of our Self Managed Superannuation Fund ( SMSF), from individual to corporate. Both of us are over 65, retired and in pension mode. The super fund name will not change but the bank accounts and holding accounts will have a name change. Will this trigger the loss of our Commonwealth Seniors Health Card ( CSHC)?
Under the income test for the CSHC, if you are only changing the trustee structure of your SMSF, and it does not result in a change to your account- based income streams or adjusted taxable income, there would be no change in the department’s assessment of your CSHC eligibility.