People are struggling with the cost and complexity of aged care – especially entering a nursing home. The Australian aged care system has undergone extensive changes recently that will have a significant impact on the finances of future aged care residents and their families.
In the past 12 to 18 months we have noticed more and more families have been selling the family home to fund entry into a residential age care facility. We put this down to the phenomenal capital growth of Sydney residential property in recent years and the new rules on renting out the former home that were introduced by the Commonwealth Government earlier this year.
From 1 January 2017 all income from renting the former home is now counted towards the age pension income test. The indefinite exemption of the family from counting towards the age pension assets test has been removed.
If you require further information we have recently updated our “Free Guide to Aged Care Finance” It is available as a FREE Download that explains how the aged care system works.
You are able to listen to the podcast of the radio show Older, Wiser, Happier with The Donaldson Sisters here.
Please do not hesitate to call our office on 1300 659 677 if you would like to arrange a meeting to discuss a loved ones personal circumstances before they move from their home to an aged care facility.