Aged care advisers need to consider legislative change
As the 1 July changes to superannuation contribution rules come into effect, advisers with older clients should be aware of the strategy options these and other legislative changes could offer for aged care, Aged Care Steps has said.
The changes would allow clients moving into residential care who decide to sell their homes to potentially take care of downsizer contributions for estate planning purposes.
Director of Aged Care Steps, Assyat David, said that advisers needed to both be aware of legislative changes that could impact clients’ aged care plans and have the tools needed to keep up to date these.
“Legislation is subject to constant change and new opportunities arise as a result. Even changes that are not directly related to aged care could create new strategy options for aged care,” David said.
“Further changes to aged care legislation and the impact on Centrelink/DVA entitlements can be expected as the Government deals with the increasing need for care by older Australians and the rising costs of subsidising care services. This is likely to result in changes to increase client contributions,” he predicted.
The implications of such legislation should be assessed in light of clients’ full circumstances and the interaction between aged care, Centrelink and taxation to meet the best interests duty.
David warned that advisers needed to make sure their calculations, software, marketing and other tools were constantly revised to keep abreast of the regular changes to aged care legislation and related strategies.
“Otherwise, advisers risk providing inaccurate and inappropriate advice to clients.”
AUTHOR
Hannah Wootton
Recommended for you
A relevant provider has received a written direction from the Financial Services and Credit Panel after a superannuation rollover resulted in tax bill of over $200,000 for a client.
Estimates for the calendar year 2024 put the advice industry on track for a loss in adviser numbers as exits offset gains from new entrants.
Adviser Ratings shares five ways that financial advice changed in 2024 with an optimistic outlook for 2025, thanks to the Delivering Better Financial Outcomes legislation.
National advice firm Invest Blue has announced several acquisitions, including the purchase of an estate planning and wealth protection business Lambert Group.
