Recent changes to Paid Parental Leave, Family Tax Benefit and other entitlements

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1 Recent changes t Paid Parental Leave, Family Tax Benefit and ther entitlements The recent passage f the Scial Services and Other Legislatin Amendment Bill has given rise t changes acrss a range f entitlements. Due t the delayed passage f the bill hwever, several amendments will take effect frm a later date than initially prpsed. We run thrugh the varius changes belw and what they mean fr yu. Paid Parental Leave The Paid Parental Leave has generated much debate in the business cmmunity. This is perhaps why the gvernment has decided t ease the administrative burden n businesses by remving the requirement fr emplyers t prvide gvernment-funded parental leave pay t their eligible lng-term emplyees. Frm July 1, 2014 (initially March 1, 2014), the Department f Human Services will directly pay emplyees their parental leave, unless yu as an emplyer pt in t prvide parental leave pay t emplyees and an emplyee agrees fr their emplyer t pay them. Pensin Bnus Scheme Frm July 1, 2014 (initially March 1, 2014), registratins will clse fr the sn-t-be phased ut Pensin Bnus Scheme. The tax-free lump sum incentive was intrduced in 1998 fr eligible lder Australians wh deferred claiming their Age Pensin and instead remained in the wrkfrce. Peple wh are already registered fr the scheme will nt be affected by the change. Thse wh are eligible hwever have been urged t ldge their applicatins fr the scheme befre the incme limit, the parental leave pay as well as CONTENTS clsure date. The Pensin Bnus Scheme will be replaced by a Wrk Bnus fr age pensiners. There are a few subtle differences between the Pensin Bnus Scheme and the new Wrk Bnus. Under the scheme, an individual culd accrue their 960 hurs f paid wrk a year by being selfemplyed whereas incme earned as a selfemplyed persn, sle trader r frm a partnership des nt qualify fr the Wrk Bnus. Additinally, the maximum accrual perid fr the scheme is five years whereas the Wrk Bnus can cntinue fr as lng as an individual cntinues t wrk after reaching Age Pensin age. Ultimately, bth schemes have their advantages and whether an individual r cuple is better ff using the Wrk Bnus depends entirely n their circumstances. Family Tax Benefit Part A Frm May 1, 2014 (initially January 1, 2014), yung peple aged 16 t 17 years wh have cmpleted their Year 12 r an equivalent qualificatin will n lnger qualify fr Family Tax Benefit Part A. Payments will cease at the end f the calendar year when the child cmpletes schling. Individuals wh n lnger qualify may instead be eligible fr the Yuth Allwance. Exemptins will cntinue t apply fr children wh cannt wrk r study due t physical, psychiatric, intellectual r learning disability. End f indexatin fr certain entitlements Frm the time the bill becmes law, indexatin pauses will be implemented fr certain higher incme limits until June 30, This means: the dad and partner pay adjusted taxable May

2 incme limits f $150,000 r less in a financial year, and the higher incme free area fr Family Tax Benefit Part A, will stay the same the annual end-f-year family tax benefit supplements will remain at current levels the annual child care rebate limit will be maintained at $7,500 fr three years. As a result, an individual will be able t receive up t the maximum amunt f $7,500 per child per financial year fr ut-f-pcket childcare csts fr thse three years. Age pensin increase in perid f Australian residency Frm July 1, 2014 (initially January 1, 2014), age pensiners will be required t have been Australian residents fr 35 years during their wrking life frm age 16 t age pensin age t receive their full means-tested pensin after a 26 weeks absence frm Australia. This is a change frm the current requirement f 25 years. It is imprtant t nte that pensiners wh are living verseas immediately befre July 1, 2014 will cntinue t be paid under the current 25-year rule, unless they return t Australia fr lnger than 26 weeks and leave again, in which the new rules will start t apply t their pensin calculatin. Pensiners will als be paid fr pensins calculated based n their wn Australian wrking life residence, rather than their partner s. Again, pensiners wh are living verseas befre July 1, 2014 are exempt frm this change unless they are eligible fr a higher pensin rate under the new rules. Changes t the rules fr receiving payment verseas Frm July 1, 2014, the length f time families can be temprarily verseas and cntinue t receive family and parental payments will reduce frm three years t 56 weeks (slightly ver a year). Eligibility fr payments will remain fr up t three years where individuals f the Australian Defence Frce r Australian Federal Plice are deplyed verseas. Special interest charge fr certain study allwances Frm July 1, 2014 (initially January 1, 2014), a special interest charge will apply t certain debts related t Austudy payments, fares allwance t help cver the csts f travelling between yur permanent hme and yur place f study, yuth allwance payments t full-time students and apprentices, and ABSTUDY living allwance payments. The interest charge will nly be applied where the debtr des nt have r is nt hnuring an acceptable repayment arrangement. Cnsult this ffice t find ut mre abut any f these changes and hw yu may be affected. Tax and marriage: Tips n nuptial knw-hw Every cuple s big day will f curse be marked mre by flying champagne crks and numerus speeches f questinable quality, instead f the tax implicatins that g alng with swapping rings. Having a general understanding f what it means t be a spuse under tax law can change the apprach taken t certain financial arrangements, clarify ptential pitfalls and allw clearer planning. Meaning f spuse under tax law Bradly speaking, the tax law defines a spuse as: anther individual, f any sex, wh is in a relatinship registered under state r territry law (that is, married), r if nt registered, lives with anther n a genuine dmestic basis as a cuple (a de fact relatinship). Sme general tax implicatins frm being a tax law spuse are as fllws: Pst-nuptial tax return When tax time cmes arund, each partner in a cuple still needs t ldge their wn individual tax return. There is n family tax return that can be used in Australia, unlike sme freign tax jurisdictins. Hwever each will be required t disclse, in certain parts f these tax returns, sme specific details f their ther half. Apart frm a pssible name change and a change f address fr ne r bth in the cuple, the Tax Office will need t knw the perid during the incme year that each became a spuse. It will als require, fr example, infrmatin n taxable incme fr a spuse, such as freign incme, distributins frm a trust, reprtable fringe benefits and als if any gvernment pensins r allwances have been received. The details prvided are used t wrk ut certain gvernment entitlements that may be based n verall family incme threshlds (see belw), as well as pssible eligibility t ther rebates and ffsets. It is therefre critical that such infrmatin is cmpleted in each spuse s tax return accurately t ensure that the crrect entitlement and ffsets May

3 are claimed. Persnal assets taken int marriage Getting married des nt change the wnership f persnal asset hldings held by an individual. Fr example, listed shares that were 100% wned by a partner prir t marriage will cntinue t be held in that capacity (unless the individual decides t transfer their interests). Any capital gain r lss arising frm the dispsal f the shares will therefre be included in the assessable incme f the legal wner (regardless f marital status). The same applies t the assessment f franked dividends and entitlements t imputatin credits again, this will be assessed fully in the hands f the wner. Jint bank accunt Generally, the Tax Office assumes a 50/50 split f interest incme where spuses pen a jint bank accunt tgether. In mst cases, spuses wuld have a jint and equal entitlement t the interest incme frm their jint accunt. The Tax Office has indicated hwever that interest incme can be assigned t ne partner in favur f the ther in respect f a jint bank accunt in certain scenaris. This will depend n whether there is evidence t shw that ne spuse is beneficially entitled t that interest. Fr example, evidence will be required if ne partner initially cntributed a greater prprtin (in dllar terms) t the jint bank accunt than the ther partner and there is a desire t have the interest derived assessed in the hands f the primary cntributr rather than jintly (that is, 50/50). Accrding t the Tax Office, relevant evidence t demnstrate whether a spuse has beneficial entitlement t the interest include such things as wh cntributed t the accunt, and in what prprtins, the nature f the cntributins (is the mney held n trust fr a dependant, fr example), and if ne partner accessed the funds and any accrued interest fr their wn purpses. Main residence exemptin fr the family hme 1) Hw des the main residence exemptin wrk? The wnership f a family hme is smething that mst newly weds aspire t and wrk twards. The family hme is generally exempt frm CGT under the main residence exemptin. A capital gain r lss arising frm the changing value f a huse wuld be disregarded if the dwelling is subsequently dispsed. A full exemptin is available where the dwelling is treated as a main residence thrughut the perid that it is wned. As far as defining that term main residence, there are n specific rules as t when a dwelling is deemed t be a main residence. This is subject t the relevant facts and is cnsidered n a case-bycase basis. The Tax Office utlines sme factrs t cnsider which may include, but are nt limited t, the length f time the dwelling is ccupied, the address t which mail is delivered, cnnectin f utilities and where ne s family resides. 2) Spuses with different main residences It is nt unusual fr ne r bth partners t cme int the marriage already wning a prperty in their wn names. A cmmn scenari wuld be where ne spuse mves int the ther spuse s hme and leases their frmer residence fllwing their nuptials. Special CGT rules apply in relatin t the main residence where each partner cmes t the marriage each wning a main residence. In simple terms, fr the perid where this ccurs the special rule requires each spuse t chse ne f the fllwing ptins: Optin A: Chse nly ne f the dwellings t be their main residence, r Optin B: Nminate the different dwellings as their respective main residences. Further, if ptin B is chsen, the extent f the exemptin fr the perid will depend n the wnership interest that individual has in the dwelling. Specifically: Individuals wh hld mre than a 50% interest in the dwelling are allwed an exemptin fr half f the perid. Where the interest is equal t r less than 50%, the exemptin fully applies fr the perid. The main residence CGT exemptin may therefre be split between dwellings depending n the ptin chsen by each spuse. Nte that the special rules fr spuses d nt apply if they are living permanently apart frm each ther. An example may be where ne partner takes up an emplyment cntract in anther city fr a year and they buy anther dwelling in that city, with the ther partner staying in the riginal huse. After the cntract ends, the new dwelling is sld. The main residence exemptin wuld typically apply n the sale f this dwelling. The applicatin f the main residence exemptin May

4 can be cmplex where it invlves spuses each having a different main residence. Cnsult this ffice if yu if need assistance. Where family incme determines a tax ffset Certain entitlements and ffsets may be affected nce a cuple marries a cmmn ffset being the private health insurance rebate. The private health insurance rebate is a measure that encurages Australians t take up private health insurance by ffering a reductin in premiums. This can be an upfrnt benefit by way f reduced premiums r can be claimed as an ffset upn ldgement f the individual s tax return. The rebate ffered n premiums is incme-tested and determined by specific incme tiers. The maximum rebate is 30% and phases ut depending n the individual s incme (cnsult this ffice fr the exact definitin f what cnstitutes incme ). In the case f individuals wh mve frm single status t living as spuses (deemed family fr this rebate), the level f rebate n insurance premiums in relatin t an individual can change if a persn had a spuse at year-end. Family incme tiers wuld apply instead f single incme tiers. Fr example, say the prspective wife, while still single, is n a gd annual salary f $140,000. Assuming n ther incme fr the purpses f the rebate, the incme level will place her in the tier 3 threshld, which puts her in an incme range that means n rebate is available (that is, 0%). The prspective husband hwever earns $90,000 a year, which while single, entitles him t a 19.36% (frm April 1, 2014) rebate n his private health insurance premiums under tier 1. If they marry prir t June 30, 2014, their cmbined incme f $250,000 as a family means that the rebate available t each f them is set t tier 2, r 9.68% f insurance premiums. The cnsequences fr each spuse will be different. Mr Taxpayer s rebate will be reduced by abut 10%, which means if he has claimed the rebate entitlement upfrnt thrugh his plicy, he will be required t incur a private health insurance debt in his 2014 tax return. This will be shwn in the ntice f assessment as an excess private health reductin. Mrs Taxpayer n the ther hand will enjy a rebate that was denied t her befre due t her previus incme level, with the apprximate 10% rebate n her premium refunded as an ffset that will be shwn n her ntice f assessment. Certain ther tax ffsets are als incme-tested as a family unit, such as the Net Medical Expenses Offset, hwever this is being phased ut. Superannuatin spuse cntributins A tax ffset is available fr superannuatin cntributins made n behalf f ne spuse t the ther spuse s super fund, shuld fr example the cuple decide t have children and ne partner leaves paid emplyment t d s. The ffset applies t cntributins made n behalf f a nnwrking r lw incme-earning spuse (with assessable incme f less than $13,800, which includes reprtable fringe benefits and reprtable emplyer super cntributins). The ffset claimant may be entitled t claim 18% n super cntributins up t $3,000, but with a maximum ffset available f $540. Nte that a spuse cntributin wuld cnstitute a nncncessinal cntributin and will cunt twards the cntributing partner s nn-cncessinal cap (which is $150,000 fr and $180,000 fr ). May their prblems be little nes Dwn the track, there is always the prspect f the happy husehld being hme t ne r mre budding taxpayers-t-be. It is wrth nting that the Baby Bnus n lnger applies frm March 1, Nnetheless, there is the incumbent Paid Parental Leave scheme t cnsider, and the prpsed and mre generus paid parental leave plan frm the current gvernment t keep an eye n. There may be capacity hwever t receive the new Newbrn Upfrnt Payment and Newbrn Supplement as part f Family Tax Benefit part A (if eligible, and if certain cnditins are met). Ask this ffice fr mre details. Hw t wind up an SMSF Last mnth, we cmpiled a guide n the questins yu have t ask yurself befre deciding t establish a self-managed superannuatin fund (SMSF). But what if yu already have ne that yu want t wind up? There culd be many reasns yu may need t wind up yur SMSF: there are n members left they may have passed away r rlled benefits int ther funds there are n assets left the SMSF may have paid members all f their benefits divrce a marriage breakdwn may frce May

5 husband and wife members t split the fund s assets and may affect the ability f members t effectively undertake their trustee bligatins insufficient funds there is nt enugh mney in the fund t keep cvering running csts relcatin verseas ne r mre members mve t anther cuntry, rendering the SMSF unable t satisfy the definitin f being an Australian superannuatin fund ld age trustees circumstances may have changed in a way that has affected their capacity t effectively manage an SMSF, which can be cmplex and cnstantly requires a significant investment f time and expertise death where there is nly ne member, their legal persnal representative will be required t pay ut all benefits as per the trust deed r death benefit nminatin. Where there is mre than ne member, ther members may nt wish t cntinue the fund. Once the decisin t wind up an SMSF has been made, there are certain bligatins and requirements trustees must satisfy bth fr the fund s members and fr the SMSF regulatr, the Tax Office. Read yur superannuatin fund s trust deed, as it may cntain vital infrmatin abut winding up yur fund. We utline the fur steps yu need t take belw. D remember hwever, nce a fund is wund up, it cannt be reactivated. Step 1: Ntify the Tax Office within 28 days Yu need t let the Tax Office knw within 28 days f the fund being wund up. Yu can ask this ffice t help yu d it in writing but yu must ensure we have: the name f yur SMSF the Australian business number (ABN) f yur SMSF yur name, phne number and fax number, and the date yu wund up yur SMSF. Step 2: Deal with members benefits Yu need t make sure that: yu deal with members benefits accrding t the superannuatin law and the trust deed yu btain market value balances f all related accunts yu ensure all SMSF assets have been sld and member cntributins dealt with in accrdance with the trust deed and superannuatin laws yu ensure all prper steps are taken t transfer wnership and title f any assets yu decide whether any crprate trustees in yur fund wish t deregister with the Australian Securities and Investments Cmmissin (ASIC), and yur fund has n assets left nce it has been wund up. Yu can get this ffice t find ut the balance f any accunts the Tax Office hlds fr yur fund. Yu can als ask abut the status f any activity statements and whether there are any utstanding. Make sure that all activity statements are up-tdate. If yu have wund up yur fund but yu, as a member, have nt met a cnditin f release retirement, transitin t retirement, r reaching age 65 yu cannt access yur superannuatin. Yur superannuatin needs t be rlled ver int anther regulated superannuatin fund. Remember, there are serius legal penalties fr accessing yur superannuatin benefits befre yu are legally allwed. Seek advice frm this ffice n the ptential capital gains tax (CGT) implicatins fr yur SMSF n the dispsal f assets t enable the payment f benefits r the rllver f benefits t anther fund. Remember thugh, yu d nt need t withhld tax when paying a benefit if the benefit is either: Frm a taxed surce and being paid as either (i) (ii) a superannuatin incme stream, r a lump sum and being received by a member wh is 60 years ld r ver at the time f the payment, r Being paid as a lump sum because the member has a certified terminal medical cnditin. These payments are nrmally tax free. Step 3: Arrange a final audit f yur fund When winding up yur fund, yu will need t have an audit cmpleted by an apprved SMSF auditr befre yu can ldge yur final SMSF annual return. Refer t ur article Timely tip fr SMSFs: Audit yur fund befre annual return deadline in ur February mnthly newsletter t learn mre abut the purpse f an SMSF annual return, hw t appint an SMSF auditr and what the ramificatins are f failing t ldge an annual return when necessary. Step 4: Cmplete yur reprting respnsibilities When preparing and ldging yur annual return, yu need t cmplete all labels in relatin t Was May

6 the fund wund up during the incme year? (item 9). Yu must als pay any utstanding tax liabilities at this time and ldge any utstanding returns frm previus years. This ffice can assist yu in these matters. It is imprtant t wind up yur fund crrectly. If yu fail t carry ut these reprting respnsibilities, yu may be the fcus f cmpliance activities and yu may be subject t penalties. T cnfirm yu have met all f yur tax respnsibilities, the Tax Office will send yu a letter stating that it has: cancelled yur SMSF s ABN, and clsed yur SMSF s recrd n its systems. What NOT t d Dn t cancel yur SMSF s ABN. The Tax Office will d this nce it has been ntified f the intentin t wind-up the SMSF. The Tax Office will then send the trustee written cnfirmatin that the ABN has been cancelled. Dn t assume that ldging a final SMSF annual return and reprting wind up infrmatin is the last cntact yu will have with the Tax Office. Yu need t finalise all ldgement and payment bligatins befre yu can wind up. Dn t dispse f any paperwrk. A lt f yur recrds will need t be kept fr several years, and sme even up t 10 years. Dn t clse the SMSF s bank accunt until all expected final liabilities have been settled and requested refunds are received. Tax liabilities (including the final SMSF levy) can be prepaid r paid with ldgement f the SMSF annual return. Als, nce a bank accunt fr an SMSF has been clsed, a new ne cannt be pened withut first prducing a new trust deed. Case study William is a member and trustee f an SMSF. Just befre Christmas in 2013, he decides t wind up and transfer his benefits t anther superannuatin fund. William discvers he has nt ldged annual returns fr the 2012, 2013 and 2014 financial years. Befre his fund can be wund up, William needs t: have the fund audited fr the 2012 and 2013 financial years and rganise a final audit fr the 2014 financial year ldge the annual return fr the 2012 and 2013 financial years cmplete Item 9 in the final (2014) SMSF annual return (which relates t winding up an SMSF) allw enugh mney t pay fr: audit fees the $200 supervisry levy fr the 2012 financial year the $321 supervisry levy fr the 2013 financial year the $388 supervisry levy fr the 2014 financial year any incme tax liabilities due, and fees t prepare annual returns and any ther paperwrk due fr the 2012, 2013 and 2014 financial years, and cmplete a rllver benefits statement and send a cpy t the fund which received his transferred benefits. William can clse the bank accunt f the SMSF when the final liabilities have been settled. All relevant recrds will need t be kept. As yu can see frm the case study abve, winding up an SMSF can be cmplicated at times. Call us if yu have any questins abut hw t wind-up the fund, need help with filling ut electrnic ldgements r infrmatin abut the tax implicatins f winding up. Cncessinal and nncncessinal cntributins caps t rise frm July 1, 2014 Did yu knw that the present $25,000 cncessinal cntributins cap will increase t $30,000 cme July 1, 2014? Many will welcme the $5,000 rise, seeing the cap f $25,000 has been in place since The imminent increase will bring abut a range f changes t varius cntributin strategies fr selfmanaged superannuatin funds (SMSF) members and Australian Prudential Regulatin Authrity (APRA) regulated fund members alike. It is therefre imprtant t start thinking abut planning fr the increase. A temprary higher cap f $35,000 has als been available t thse individuals aged 59 and ver as f June 30, It will extend t thse aged 49 years r ver n June 30, 2014 (applying frm July 1, 2014). The table belw summarises these new caps: May

7 Incme year Cap fr thse aged 59 years r ver n June 30, 2013 Cap fr thse aged 49 years r ver n June 30, 2014 Cap fr thse aged belw 49 n June 30, $35,000 $35,000 $30, $35,000 $25,000 $25,000 The indexatin f the cncessinal cntributins cap has sme additinal flw-n effects t the nncncessinal cntributins cap, with this pst-tax cntributins cap being six times the cncessinal cntributins cap. Therefre, frm July 1, 2014, the nn-cncessinal cntributins cap will increase frm $150,000 t $180,000. Further, under bring frward rules, an individual wh is under 65 years f age can bring frward tw years wrth f future nn-cncessinal cntributins entitlements. Frm July 1, 2014, superannuatin fund members aged 64 r less will be eligible fr a higher bring-frward amunt f $540,000 (up frm $450,000). Cnsult this ffice t find ut what strategies yu can put int place t take advantage f the snt-be raised cntributins caps. Beware: Aged-care accmmdatin t get mre expensive after July 1, 2014 If yu are planning t enter aged-care accmmdatin, it shuld be dne sner rather than later. Aged care is likely t get a lt mre expensive frm July 1, 2014 when means testing fr the gvernment accmmdatin supplement will be based n incme and assets f the recipient as ppsed t just incme-testing alne. The current incme-tested care fee which is based n assessable incme will be replaced by a means-tested care fee that will be based n bth assessable incme and assets (which may include yur hme). The gvernment will either pay the maximum accmmdatin supplement r a part accmmdatin supplement, depending n the recipient s assessed financial circumstances. Fr many, this will mean nging care fees will be higher if entering int an aged care facility n r after July 1, Further, the manner t which payment fr the accmmdatin shuld be made, the amunt f accmmdatin fees payable and any n-ging care fees will als be affected. Critically, the family hme may als impact the accmmdatin fees payable. The table n the fllwing page summarises the current situatin and the pst July 1 changes. The changes will nt affect peple wh are already living in aged care facilities r thse wh are already receiving care at hme unless they leave care and re-enter after a perid f 28 days, r if they change facilities and decide t re-enter under the new rules. Hwever, anyne nw receiving care at hme wh enters aged-care accmmdatin n r after July 1 wuld have t enter int a new agreement with the new prvisins. What shuld yu d? Peple are being advised t bring frward their entry int aged care befre July 1, 2014 meaning they wuld need t have an admittance date prir t July 1 and have all financial arrangements, such as incme-friendly investment structures, in place befre that. As it ften takes mre than a mnth after receiving an aged care assessment t enter a subsidised residential aged care facility, it wuld be wise t act quickly. While there are a number f factrs that will influence this majr decisin, it is vital t knw that keeping r selling yur hme will affect yur nging care fees if yu enter a care facility after July 1 this year. If yu decide t keep yur hme, cnsult this ffice t structure yur accmmdatin csts and devise an apprpriate investment strategy t reduce the amunt yu pay fr yur aged care. If yu sell yur hme, the entire prceeds will be assessed t determine yur nging care fees. This will need t be cnsidered alngside the practicalities f keeping the hme, such as nging bills and maintenance. It is imprtant that anyne cntemplating entering aged care any time sn fully understands what impact the new rules will have n bth the cst f care, and their age pensin, plus any ther financial implicatins. Cnsult this ffice fr advice. May

8 Befre July 1, 2014 After July 1, 2014 Aged Care Assessment Team (ACAT) assessments Upfrnt accmmdatin csts Hw accmmdatin csts are determined An assessment is needed t determine the apprpriate level f care yu require high r lw. Accmmdatin is paid as: an accmmdatin charge (daily payment) if yu re entering a high-level facility, r an accmmdatin bnd (lump sum payment) if yu re entering a lw-level care r extra service facility. Accmmdatin csts are determined by a resident s assessable incme. The distinctin between lw-level care and highlevel care will be remved. Assessments will simply be t determine if any frm f care is needed. Yu will have the ptin t pay fr yur accmmdatin either as: a daily payment a lump sum refundable depsit (similar t an accmmdatin bnd), r a cmbinatin f bth. This is regardless f type f facility yu enter. The daily payment is paid unless and until a refundable depsit is paid. Daily payments are nt required mre than a mnth in advance. Yu can chse t draw dwn daily payments frm yur refundable depsit. Yu can find the price f rms n Residents will have up t 28 days after entering a facility t decide n their payment methd. Yur chice can have an impact n yur financial assets, which can therefre influence hw much yu pay fr yur nging care fees. Accmmdatin csts will be determined by a resident s assessable incme and their asset hldings. Yu are required t pay a basic daily fee. Yu are required t pay a basic daily fee. Onging care fees If yu re nt receiving the full Age Pensin, yu will generally be required t pay an additinal daily fee based n yur incme. If yu re nt receiving the full Age Pensin, yu will be required t pay an additinal daily fee based n yur level f incme and assets. An extra service fee is payable in an extra service facility and is set by the facility. All facilities will be able t ffer extra services fr an additinal fee. Assessment f yur hme If yu keep yur hme, it is nt assessed as an asset t determine yur nging care fees. Up t $144,500 f the value f yur hme will be assessed as an asset t determine yur nging care fees, unless it is ccupied by a prtected persn fr instance yur spuse. May

9 DISCLAIMER: All infrmatin prvided in this publicatin is f a general nature nly and is nt persnal financial r investment advice. It des nt take int accunt yur particular bjectives and circumstances. N persn shuld act n the basis f this infrmatin withut first btaining and fllwing the advice f a suitably qualified prfessinal advisr. T the fullest extent permitted by law, n persn invlved in prducing, distributing r prviding the infrmatin in this publicatin (including Taxpayers Australia Incrprated, each f its directrs, cuncillrs, emplyees and cntractrs and the editrs r authrs f the infrmatin) will be liable in any way fr any lss r damage suffered by any persn thrugh the use f r access t this infrmatin. The Cpyright is wned exclusively by Taxpayers Australia Inc (ABN ) May