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In an effort to make aged care means testing fairer and more consistent, the Australian Government announced in the 2015-16 Budget that it would make some changes to the way a residents former home is assessed for aged care means testing. For new residents from 1 January 2016, rental income will be assessed for the aged care means test. This change is likely to increase an affected clients ongoing fees, emphasising the value of financial advice on aged care funding and cash flow management. This article explains the change, how it can impact new aged care residents and the strategies advisers can consider for these clients.