Moving into aged care can be both an emotional and costly experience. When a couple requires care at the same time, many prefer to move in together on the same day to avoid separation and to support each other. While this makes emotional sense, the financial implications of moving into permanent residential care on separate days can be significant. A staggered entry approach—where a couple enters aged care on different days—can help manage costs and optimise financial outcomes.

When a couple enters permanent care on the same day, their assets and income are generally assessed as a 50/50 split, regardless of whose name the assets or income are in. Additionally, their family home is assessed at a capped value ($206,663) each for the aged care means assessment. Regardless of other assets, both individuals will then be required to pay the Refundable Accommodation Deposit (RAD) or the Daily Accommodation Payment (DAP) or a combination of the two.

An alternative approach is a staggered entry into care, so they enter permanent care on different days. This results in the property being exempt for the first person to enter care. Depending on the value of their other assets, this could lead to the first person being assessed as a low-means resident, significantly reducing their aged care costs. As a low-means resident, their accommodation costs would be subsidised, and they would pay a Daily Accommodation Contribution (DAC) instead of a DAP. They would also have the option to pay a Refundable Accommodation Contribution (RAC). When the second member of the couple enters care, the family home is then assessed at the capped value, and they would be required to pay a DAP or RAD.

Scenario

To illustrate the financial implications, let’s examine a case study involving a couple who recently entered care.

Dan and Joan both required residential aged care. They owned a home together valued at $950,000, had $195,000 in cash assets, $5,000 in lifestyle assets, and received the full couples’ Age Pension. They were quoted a RAD of $750,000 each for two single rooms.

If Dan and Joan entered care simultaneously, their assets would be assessed at $306,663 each (capped value of the family home plus 50% of their combined other assets). They would each pay a DAP of $167.88 per day (assumes MPIR 8.17%).

However, if Dan moved into care first, he would be assessed as a low-means resident, with his assessable assets totalling $100,000 (the family home would temporarily be exempt as Joan is a protected person). Dan would initially pay a DAC of $18.51 per day. When Joan enters permanent care, the family home would no longer be exempt, and its capped value would be included in the asset assessment. Consequently, Dan’s DAC will increase to the maximum of up to $69.79 (indexed) per day. This is considerably lower than the DAP of $167.88 a day.

This example highlights how staggered entry can reduce initial accommodation costs and provide greater financial flexibility.

Important considerations for low-means residents

Low-means residents will have their assessed DAC vary as their circumstances change, including:

• Protected person status being lost
• Changes to the resident’s assessable assets including the sale of the former home
• Death of a spouse

Changes to the facility’s circumstances can also affect DAC, such as:

• A change in the ratio of low-means residents
• The facility being classified as significantly refurbished

Once assessed as low-means, a resident will always remain a low-means resident regardless of future financial changes, unless:

• They move facilities and are reassessed (after 120 days from the initial assessment)
• They leave the aged care system for 28 days or more

It is important to know some aged care providers may not accept low-means residents or may offer them limited accommodation options, such as sharing a room or a bathroom. Other providers, however, may offer the same standard of accommodation for both low-means and full RAD-paying residents.

We are here to help, every step of the way

Moving into aged can be complex and it is important that residents and their families understand the implications of being assessed as a low means resident. Getting the right advice before entering aged care will ensure residents and families make the right decisions and understand their implications, reach out to Alteris’ Lifestyle and Care team today.

Alteris’ specialist division of financial advisers are accredited in aged care advice and can talk you through all available options and explain the various financial considerations. Their team can also provide full support with ensuring the fees and pension are correct by working directly with your accommodation provider, Services Australia and the relevant government departments. Learn more about Alteris’ accredited aged care financial advisers.

The Australian Taxation Office (ATO) has kicked off 2025 by announcing its key focus areas for small businesses. In this Tax Alert March 2025, the ATO has also signalled a tougher stance on super guarantee (SG) compliance and GST fraud. Here’s a roundup of the latest tax news.

The regulator has announced its key small business tax issues for this financial year. The three main areas the ATO is focusing on are:

• Deductions and concessions, including non-commercial losses and small business CGT concessions.
• Incorrect use of business income, such as using business money and assets for personal benefit.
• Businesses operating outside the system, particularly GST registration and undeclared income in taxi, limousine, and ride-sourcing services.

The ATO plans to review and publish quarterly focus themes to help small businesses identify and address issues in these areas.

GST fraud warning

The ATO-led Serious Financial Crime Taskforce is warning businesses against attempting to cheat the tax and super system through GST fraud, stating that it is actively monitoring for potentially fraudulent activities. ⁱ

New information shared between government agencies reveals that some businesses are using complex financial arrangements to disguise transactions to obtain larger GST refunds.

These arrangements include:

• False invoicing between related entities.
• Deliberately misaligning GST accounting methods across a group.
• Duplicating GST credit claims.
• Claiming GST credits for fake purchases.

Tax penalties increase

The cost of penalty units imposed by the ATO for failing to meet tax obligations has increased again, rising from $313 to $330 per unit. ⁱⁱ

The new rate applies to infringements occurring on or after 7 November 2024. For example, the penalty for failing to keep or retain tax records as required is 20 penalty units (20 × $330 = $6,600).

Other penalties apply to:

• Missed or late super guarantee (SG) payments.
• Individual and corporate SMSF trustees.
• GST obligations when buying or selling new residential properties.

GST and fuel tax credit time limits

The ATO is encouraging businesses eligible for GST and fuel tax credits to claim their credits within four years of the due date of the earliest Business Activity Statement (BAS) where a claim could have been made.

Once the time limit passes, you are no longer eligible to claim the credits. Lodging an amendment to an original assessment or requesting a private ruling does not count as making a claim.

Old credits can still be claimed in your next BAS (provided it is within the eligibility period) by:

• Lodging a revised BAS for the original period via ATO Online Services, or
• Lodging a valid objection within the time limit to preserve your entitlement to the credits.

Change to myGovID

The Australian Government’s digital ID app, myGovID, which is used to access government services, has been renamed myID.

The app provides secure access to government services using your existing login details (including your email address), with the identity strength remaining unchanged. Existing app users should find the app automatically updated on their smart device, or it can be manually updated via the Apple App Store or Google Play.

The ATO is warning users that scammers are attempting to take advantage of the name change. Any message or email asking you to set up a new myID or reconfirm your details is a scam.

By taking proactive measures, staying informed, and seeking professional financial advice, you can navigate the evolving landscape of personal and business tax compliance with confidence. Our financial advisers can work with you to understand your tax situation and safeguard your financial wellbeing.

Sources

i Taskforce issues GST fraud warning to dishonest businesses | Australian Taxation Office

ii Penalty units | Australian Taxation Office

iii Our SG compliance results are here | Australian Taxation Office

More than half of us set a new financial goal at the beginning of 2025, according to ASIC’s MoneySmart website. While most financial goals focus on saving money and paying down debt, the months leading up to 30 June present an opportunity to review your super balance and explore ways to boost your retirement savings.

What you need to consider

If you have more than one super account, consider consolidating them into a single account. Doing so could save you from paying multiple fees and make it easier to keep track of your super.

When transferring your super into one account, do your research and compare options—your current fund may not be the best choice.

Boosting your retirement savings

Making additional contributions on top of the super guarantee paid by your employer can significantly boost your retirement savings, thanks to the power of compounding interest.

Ways to boost your super before 30 June

Concessional Contributions (before tax)

These contributions can be made from your pre-tax salary via a salary-sacrifice arrangement through your employer or by using after-tax money and depositing funds directly into your super account.

In addition to increasing your super balance, concessional contributions may also reduce your tax liability, depending on your marginal tax rate.

Check your year-to-date contributions to ensure any additional contributions do not exceed the concessional (before-tax) contributions cap, which is $30,000 from 1 July 2024. Work test restrictions apply for claiming a tax deduction on personal contributions if you fall in the 67-74 age bracket.

If you exceed the concessional contributions cap of $30,000 per annum, any additional contributions will be taxed at your marginal tax rate, with a 15 per cent offset to account for the contributions tax already paid by your super fund.

Non-Concessional Contributions (after tax)

Provided you are under age 75, you can make personal contributions to super. These are made from your after-tax income, also known as non-concessional contributions. It is important to stay within the non-concessional contributions cap, which is set at $120,000 from 1 July 2024.

Exceeding the non-concessional contributions cap will result in a tax rate of 47% on the excess contributions.

Carry forward (catch-up) concessional contributions

If you have had a break from work or have not reached the maximum concessional contributions cap in the past five years, you may be able to use catch-up contributions to boost your super—especially if you have received a lump sum, such as a work bonus.

These contributions utilise unused concessional caps from the previous five financial years and are available only to those with super balances below $500,000 on 30/06/2024 (for contributions made until 30/06/2025).

Strict rules apply to this type of contribution, making it essential to seek advice from one of our expert financial advisers before making a catch-up contribution.

Downsizer Contributions

If you are over 55 years old, have owned your home for at least 10 years, and are looking to sell, you may be eligible to make a non-concessional super contribution of up to $300,000 per person—or $600,000 as a couple.

The contribution must be made to your super within 90 days of receiving the proceeds from the sale of your home.

Spouse Contributions

There are two ways you can make spouse super contributions:

• Contribution splitting: You can rollover certain contributions you have already made to your own super into your spouse’s super. This is known as a contributions-splitting super benefit.
• Direct contribution: You can contribute directly to your spouse’s super, which will be treated as their non-concessional contribution. If your spouse earns less than $40,000 per annum, you may be eligible for a tax offset of up to $540 per year (based on a $3,000 contribution).

As with all super contributions, there are restrictions and eligibility requirements to consider.

Meanwhile, the fate of the proposed Division 296 tax, which would apply to super balances over $3 million, remains uncertain. It has yet to be debated and voted on in the Senate.

Maximising your super contributions before 30 June can significantly boost your retirement savings and improve your financial future. If you or a loved one needs assistance, we’re here to help— contact your adviser or our team to start planning for a secure and rewarding retirement.

As we say goodbye to the heat of summer, we can look forward to enjoying the cooler days ahead. Along with the drop in temperature, the RBA brought much relief to mortgage holders by cutting the cash rate by 25 basis points in February. The cash rate is now sitting at 4.10 per cent following the first rate reduction since November 2020.

Inflation remained steady in February at 2.5 per cent, with core inflation at 2.8 per cent. However, the RBA remains cautious and has not guaranteed further cash rate cuts in 2025. Some economists are predicting additional cuts this year, but time will tell.

While ongoing tensions persist between Russia and Ukraine, as well as in the Middle East, and with a looming trade war due to Trump’s proposed tariffs, the global economic outlook remains unpredictable.

US markets reacted to lower-than-expected consumer spending and continued geopolitical uncertainty, resulting in another month of volatility.

It has also been a turbulent period for the Australian share market, with the ASX 200 losing ground earlier in the month, bouncing back to reach an all-time high, only to start falling again, closing at its lowest point in two months.

A similar pattern has been seen with the Australian dollar, which climbed to a high of $0.64 USD in mid-February before losing momentum and now hovering around $0.63 USD.

If there is something affecting your financial situation that you would like to discuss, please do not hesitate to reach out to our team.

We’re excited to welcome Gary Gleeson to The Investment Collective team! Joining us in January as our Managing Adviser in the Melbourne office, Gary brings a wealth of experience and a deep passion for financial planning.

For Gary, the path to becoming a financial adviser wasn’t a complicated decision—it was clear from the beginning. Straight out of school, he found himself working with a small financial planning firm in Little Collins Street in Melbourne.

“I took a couple of detours along the way,” Gary recalls, “but financial planning was always my first love.”

Those early years gave him the skills and experience to build the rewarding career he has today.

The drive to make a difference

What Gary loves most about his job isn’t just the numbers—it’s the people.

“I really enjoy working with my clients and my team,” he shares. “The best part is seeing the difference we make in people’s lives through our advice.”

For Gary, each client’s success feels personal, and helping them navigate important life decisions is what drives him every day.

Gary doesn’t point to a mentor or life-changing experience that shaped his career. Instead, it was a simple realisation that financial planning was the best way for him to connect with people and make a tangible difference.

“I always knew I wanted to work closely with people, and financial planning just made sense,” he says. “Someone once told me that if you love what you do, you’ll never work a day in your life—and that’s exactly how I feel.”

Interests away from the office

Outside of work, life is just as busy and fulfilling. “I’m married with two adult kids at university,” Gary shares. “We also have two very active (and slightly chaotic) dogs—a Hungarian Vizsla and a Dalmatian.”

When it comes to hobbies, golf is the big one. “I’m a member at Peninsula Kingswood, and now my wife and son have taken it up too. We’re all pretty competitive!”

Gary’s dedication to client success

As Gary continues to grow in his career, one thing hasn’t changed—his commitment to helping his clients. His down-to-earth approach and genuine passion for financial planning make him a trusted adviser for those looking for real, practical advice.

Looking for expert financial advice with a personal touch? Contact Gary to start planning your financial future today!

Every adviser has a story, and for Liz Whalley, being a financial adviser is about more than just numbers—it’s about people. “We really do ride the highs and lows together,” she says. “I love listening to what drives my clients and feel privileged when someone trusts me to help them along the way.”

For Liz, the most rewarding part of her job isn’t just helping clients reach their financial goals—it’s the relationships she builds along the way. Whether celebrating milestones or navigating challenges, she’s there for the entire journey, offering guidance, support, and a listening ear.

A unique path to financial advice

Liz’s journey into the financial planning industry wasn’t conventional. “After initially deciding university wasn’t for me, I was lucky enough to get a traineeship with a financial planning company. I thought, ‘Wow, look at all the people the advisers help—I want to be part of that.’” However, career shifts led Liz to work in the accounts department for a nationwide bearing and power transmission company—where she met her husband. Eventually, she returned to financial planning and her studies, starting at the reception desk and working her way up through client services, paraplanning, and finally, becoming a financial adviser.

Throughout her career, Liz has been fortunate to work with inspiring mentors. “Alan Larsen, my previous boss at Godfrey Pembroke, started me on my path, and more recently, David French took me under his wing for my professional year. It was a fantastic learning experience.”

Interests away from the office

Outside of financial planning, Liz has a love for muscle cars and the thrill of the dragstrip. “Growing up, my dad was a diff builder, and we were frequently at drag races. The smell of burnt rubber reminds me of those times, and I find it very comforting.” She also enjoys snorkelling and has a deep passion for travel.

Empowering women through financial literacy

Liz believes that knowledge is power and strives to create a safe space where clients feel comfortable discussing their financial situations. “I never judge or assume what someone knows. I take the extra time needed to build their knowledge and confidence.”

Her advice to women seeking greater financial independence? “It’s never too late to start, and there’s no such thing as a silly question. I think finances are still a bit of a taboo topic, and I want to encourage more conversation around them. That’s why I believe the Alteris Women initiative is such a fantastic movement.”

Through her dedication, expertise, and genuine passion for helping others, Liz continues to make a meaningful impact on the financial well-being of her clients—one conversation at a time.

If you’re looking for a financial adviser who truly listens and supports you every step of the way, Liz would love to help. Whether you’re planning for the future or navigating financial challenges, she’s here to provide guidance and confidence. Get in touch today to start the conversation.

Most people with assets will pay more for aged care if they enter the system after 1 July 2025.

Back in October, we shared information about the aged care fee reforms aimed at enhancing the quality and sustainability of aged care in Australia.

Now, with more details available and these changes fast approaching, it’s critical that people don’t leave care decisions too late. Aged care planning takes time, and delaying could mean higher costs and fewer choices. These reforms will impact the fees associated with home care and residential care services, so now is the time to get informed and consider any necessary action.

Whether you’re currently receiving care or supporting a loved one on their care journey, it’s essential to understand what these changes could mean for you.

Aged care fee reforms from 1 July 2025

A new aged care system will come into effect on 1 July 2025.  If someone is already in aged care at that time, their fees will stay the same under the old rules.

However, if an existing resident moves to a different facility after 1 July 2025, it’s important to seek advice from one of our aged care advisers to understand how the current rules may still apply.

Accommodation

The main changes for new residents from 1 July 2025 are:

1. Retention fee on Refundable Accommodation Deposit (RAD): Providers will keep a small portion of the RAD as a non-refundable retention fee of 2% per annum for up to five years, with a maximum of 10% retained.
2. Indexing of Daily Accommodation Payments: For residents who choose to pay a daily fee instead of a RAD, the Daily Accommodation Payment (DAP) will increase twice a year (on 20 March and 20 September) in line with the Consumer Price Index (CPI).

There will be no changes to how the family home is treated in the aged care means test assessment process. If a spouse or a “protected person” lives in the home, the property remains exempt from financial assessments. Otherwise, approximately $208,000 of its value (indexed) will be included.

Daily Care Fees

The government will continue to fund all clinical care. Care fees can be compared to the current cost structure as follows:

Home Care (Support at Home)

From 1 July 2025, the Home Care Package system will change to the Support at Home Program, with funding divided into three areas: Clinical Care, Independence, and Everyday Living.

1. New Classification System: Recipients will be assessed into one of ten funding categories to better match funding with their individual needs.
2. Independence and Everyday Living Contributions: The government will cover 100% of Clinical Care costs. However, individuals may need to contribute up to 50% for Independence Services and up to 80% for Everyday Living Services. The amount payable will be based on Age Pension status or Commonwealth Seniors Health Card eligibility.
3. Home Care grandfathering: People with a Home Care Package as of 30 June 2025 will keep the same level of funding under the new Support at Home program along with any unspent funds. Those on the National Priority System or approved for a package by 30 June 2025 will receive an equivalent Support at Home budget when available. If a future assessment qualifies a recipient for more funding, they will transition to the new Support at Home classification once it becomes available.
4. Contribution arrangements: People who were receiving a Home Care Package, were on the National Priority System, or were assessed as eligible for a package by 12 September 2024, will not pay more due to the reforms. Their contributions will remain the same or be lower. If they move to residential care, their contribution arrangements will continue unless they choose to switch to the new program. However, changes to accommodation payments in residential care will still apply, as these are determined by agreements between the resident and their provider.

What does this mean for those already in care?

If you’re already in residential aged care, your fees are unchanged by the new legislation. As mentioned earlier, if there is a more from the current care, it is important to get advice to understand how the impact.

It’s useful to reflect on what happened the last time the rules changed. The current aged care laws, which came into effect on 1 July 2014, did not impose the new fee arrangements on those already in aged care or receiving a Home Care Package.

Where can I find out more about the proposed legislation?

On 24 November 2024, Parliament passed the Aged Care Bill 2024. This Bill becomes the new Aged Care Act, coming into effect from 1 July 2025.For more details, click the link below. https://www.health.gov.au/our-work/aged-care-act

We are here to help, every step of the way

The proposed aged care fee reforms to residential aged care and home care are significant. If you’re unsure about your current situation or how these aged care fee reforms might impact your care situation moving forward, your adviser can put you in touch wit Alteris’ Lifestyle and Care team.

Alteris’ specialist division of financial advisers are accredited in aged care advice and can talk you through all available options and explain the various financial considerations. Their team can also provide full support with ensuring the fees and pension are correct by working directly with your accommodation provider, Services Australia and the relevant government departments. Learn more about Alteris’ accredited aged care financial advisers.

Some investors find it satisfying to take a do-it-yourself approach to retirement savings by managing their own self-managed superannuation fund (SMSF) and taking responsibility for its growth.

While an SMSF gives you full control over how your retirement funds are invested—within legal limits—there are several important factors to consider first. A well-structured SMSF investment strategy is essential to ensure compliance with regulations, manage risk effectively, and achieve long-term financial goals.

Before taking the plunge, carefully weigh up the risks and rewards. This includes understanding super and tax laws, assessing the costs involved, evaluating the level of administration required, and developing a solid investment strategy.

What you need to know

Setting up an SMSF can be complex and time-consuming, with numerous regulations and rules to navigate. Seeking professional advice can help ensure your SMSF is established correctly, allowing you to qualify for the tax concessions available through the super system.

Your financial adviser can guide you through the setup process, ensuring compliance and making ongoing administration easier throughout the year.

The advantages of an SMSF

A SMSF offers several advantages, particularly for individuals who want more control over their retirement savings and investments. Some of the key pros of having an SMSF include:

Investment control

SMSF members have complete control over their investments, you decide where to invest and when assets are disposed. You can also incorporate property as part of your portfolio.

Estate planning

SMSF members can set up binding death benefit nominations to specify how their superannuation will be distributed after they pass away.

Asset protection

SMSFs can protect members from bankruptcy and litigation, and their superannuation benefits are usually protected from creditors.

Diversification

An SMSF has greater access to investment options and a diversified SMSF portfolio could reduce risk and improve returns over time. Speaking to your accountant or financial adviser can help to ensure you SMSF investment strategy is well-structured for long-term success and is well-diversified.

Tax advantages

SMSFs have one of the lowest tax rates in Australia. Other tax credits can help to further reduce the tax rate.

Lower costs

Running your own SMSF can have lower ongoing costs, especially for larger funds.

Lump sum payments

SMSF can pay benefits as a lump sum, a pension or a combination if the payment is under the laws and the trust deed.

The disadvantages of an SMSF

While there are several benefits to having an SMSF, there are also some drawbacks and challenges. Here are some of the main things to consider:

Responsibility and learning

Trustees must understand and comply with legal and financial requirements.

Cost

SMSFs can be expensive to set up and maintain, especially for SMSFs with smaller balances.

Time and effort

Running an SMSF requires a significant amount of time, effort, and expertise. Engaging with your financial adviser for assistance and ongoing support can help ease the burden and ensure your SMSF investment strategy remains aligned with your financial objectives.

Risk

SMSFs are not guaranteed by the government, and investment returns are not guaranteed. If you lose money, you won’t have access to the government compensation scheme.

Get professional help

Establishing and managing an SMSF can be difficult without professional assistance. The legal and regulatory requirements are complex and must be followed to ensure the fund remains compliant. These requirements are also regularly updated or changed, so it’s important to stay informed about any new obligations.

Many trustees require support with the day-to-day management of the fund, as well as meeting ongoing reporting and administrative obligations.

Managing an SMSF comes with both opportunities and challenges, and professional advice can make all the difference. Your financial adviser can help ensure your fund is set up correctly, remains compliant with evolving regulations, and aligns with your retirement goals. They can also assist with SMSF investment strategies, tax efficiencies, and ongoing administration, so you can focus on building your wealth with confidence.

If you or someone you know is considering an SMSF, reach out to one of our trusted advisers for expert guidance and support.

The recent holiday period and gift-giving has left many of us a little short of cash, so it can be comforting to learn that billions of dollars in unclaimed money are being held by various government agencies, just waiting to be claimed by their rightful owners

The largest pool of unclaimed funds is lost superannuation. The Australian Taxation Office (ATO) is holding more than $17.8 billion in superannuation for fund members who have become uncontactable.¹

Next, there is more than $2.3 billion from inactive bank accounts and life insurance policies that have not been claimed for over seven years. These funds are administered by the Australian Securities and Investments Commission (ASIC).²

Meanwhile, Services Australia is holding over $241 million in unclaimed Medicare benefits. These unclaimed funds typically result from patients not providing their current bank details to Medicare.³

Finally, all state and territory governments hold unclaimed money from various sources, including deceased estates, share dividends, salaries and wages, cheques, trust money, overpayments, and sales proceeds.

It’s important to note that searching the various government databases is free. While it may take some time and require digging up old paperwork to prove you once held an account, the process is accessible to anyone. Be cautious of businesses that offer to search these databases for a fee, as you can perform the search yourself at no cost.

Are you missing super?

It can be easy to lose track of your super if you’ve changed jobs several times and your employers have paid your compulsory super into different funds.

As a result, you might end up with several super accounts, each holding a small balance. According to the ATO, nearly four million people have more than one super account. ⁴

To address this issue, the ATO has introduced a “super health check” tool to help you search for any lost accounts and update your contact details. You can access this tool here.

The health check also allows you to confirm that your employer contributions are being made as expected. The ATO has ramped up audits and reviews of employers to ensure that compulsory super is being paid to employees.

While more than 92 per cent of super entitlements are paid without ATO intervention, the ATO reports that in the past year alone, it has recovered $932 million in unpaid super owed to 797,000 employees. ⁵

Employers are required to pay super in full, on time, and to the correct fund each quarter by the 28th day of October, January, April, and July, the ATO states.

Finding money in old accounts

Tracking down long-forgotten bank accounts, shares, investments, and life insurance policies is possible with ASIC’s unclaimed money tool.

To use the tool, enter your name in the search field and try variations, including initials and last name, first and last name, and your full name.

If you find a record that seems familiar, you can lodge a claim by providing proof that connects you to the account listed. ASIC states that you can expect a response within 60 days.

Don’t forget to check state and territory government websites for unclaimed money from various other sources. Funds can sometimes be found in unexpected places. For instance, missing share dividends might be lodged with an agency in the state where the company is based. You can view a list of these agencies’ websites here.

Finding your Medicare benefits

If you are not receiving the Medicare benefits, you’re entitled to, it is likely that your bank account details are either not lodged with Medicare or they are incorrect.

You’ll need to set up a MyGov account then link your Medicare account. From there you can check that your details are correct.

It may take a bit of time to find your information and track down proof of old accounts, but it could pay off with an unexpected windfall.

Your financial adviser can help you track down lost super, unclaimed bank accounts, and other forgotten funds while providing guidance on how to make the most of them. If you know someone who could use expert help in managing their finances, consider referring them to one of our trusted financial advisers. It’s a simple step that could lead to a valuable financial boost!

Sources

i Total lost (fund-held) and ATO-held super | Australian Taxation Office

ii Unclaimed money | ASIC

iii Check now: Aussies owed $241 million in unpaid Medicare benefits. | Department of Social Services Ministers

iv Trend towards single accounts | Australian Taxation Office

v Super action sees over $900 million super returned | Australian Taxation Office

If you’re planning for retirement, you’re probably wondering if you’ll have enough saved to give up work and retire comfortably, especially with the rising cost of living affecting basic expenses like energy, insurance, food, and healthcare.

Fortunately, there’s already a guide available to help you plan. The Association of Superannuation Funds in Australia (ASFA) updates its Retirement Standard annually, offering a breakdown of expenses for two lifestyles: modest and comfortable. ⁱ

Based on our average life expectancy – for women it is just over 85 years and men 81 – if you are about to retire at age 67, you will have between 14 and 18 years in retirement, on average, depending on your gender. ⁱⁱ

ASFA found that a couple needs $46,944 a year to live a modest lifestyle and $72,148 to live a comfortable lifestyle. That’s equal to $902 a week and $1,387, respectively. The figure is, of course, lower for a single person—$32,666 for a modest lifestyle ($628 a week) or $51,278 ($986) for a comfortable lifestyle. ⁱⁱⁱ

What does that add up to? ASFA estimates that, for a modest lifestyle, a single person or a couple would need savings of $100,000 at retirement age. For a comfortable lifestyle, a single person would require $595,000 and a couple would need at least $690,000 at retirement age. ^iv

A modest lifestyle means being able to afford everyday expenses such as basic health insurance, communication, clothing, and household goods but not going overboard. The difference between a modest and a comfortable lifestyle can be significant. For example, there is no room in a modest budget to update a kitchen or a bathroom; similarly overseas holidays are not an option.

The rule of thumb for a comfortable retirement is an estimated 70 per cent of your current annual income. ^v (The reason you need less is that you no longer need to commute to work, and you don’t need to buy work clothes.)

Building your nest egg

So how can you build up a sufficient nest egg to provide for a comfortable life in retirement? There are three main sources: superannuation, pension, and investments/savings. Superannuation has the key advantage, due to the money in your pension being tax free in retirement.

Your superannuation pension can be augmented with the government’s Aged Pension either from the moment you retire or later when your original nest egg diminishes.

Your income and assets will be considered if you apply for the Age Pension, however, even if you receive a pension from your super fund, you may still be eligible for a part Age Pension. You may also be eligible for rent assistance and a Health Care Card, which provides concessions on medicines. ^vi

We understand that building wealth leading into retirement can be challenging. Our financial advisers can work with you to create a plan that will align with your goals and help grow your nest egg leading into retirement.

Money keeps growing

It’s also important to remember that the amount you accumulate up to retirement will still be generating an income, whether its rentals from investment properties or merely the growth in the value of your share investments and the accumulation of money from any dividends paid.

You can also continue to add to your superannuation by, for instance, selling your family home and downsizing, if you have lived in the home for more than 10 years.

If you are single, $300,000 can go into your super when you downsize and $600,000 if you are a couple. This figure is independent of any other superannuation caps. ^vii

Seek professional advice

Planning for a good life in retirement often requires just that – planning. If you would like to discuss how retirement will work for you, contact our financial advisers. Your adviser will discuss strategies and create a plan to help grow your wealth and build towards a fulfilling retirement.

Sources

i Retirement Standard – Association of Superannuation Funds of Australia 

ii Life expectancy, 2020 – 2022 | Australian Bureau of Statistics (abs.gov.au) 

iii https://www.superannuation.asn.au/media-release/retiree-budgets-continue-to-face-significant-cost-pressures

iv https://www.superannuation.asn.au/resources/retirement-standard/

v https://www.gesb.wa.gov.au/members/retirement/how-retirement-works/cost-of-living-in-retirement

vi Assets test for Age Pension – Age Pension – Services Australia

vii Downsizer super contributions | Australian Taxation Office (ato.gov.au)