Retirement Affordability Index November 2021

ISSUE 19 NOVEMBER 2021

Retirement Affordability Index

™

WHAT OLDER AUSTRALIANS REALLY DON’T WANT TO TALK ABOUT You can put your head in the sand about one day needing help in your later years – but you can’t keep it there forever.

www.yourlifechoices.com.au

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Contents

Published by: YourLifeChoices Pty Ltd Publisher: Leon Della Bosca Editor: Janelle Ward Copy Editor: Dairne John Writers: Louise Biti, Richard Burrell, Matt Grudnoff, Lincoln Hopper, Craig Phillips, Peter Scutt, Janelle Ward Cover Design: Leon Della Bosca Designer: Word-of-Mouth Creative Email: admin@yourlifechoices.com.au Web: www.yourlifechoices.com.au Phone: 61 3 9081 9997 All rights reserved, no parts of this book may be printed, reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, recording or otherwise, without the permission in writing from the publisher, with the exception of short extractions for review purposes.

IMPORTANT DISCLAIMER No person should rely on the contents of this publication without first obtaining advice from a qualified professional person. This publication is distributed on the terms and understanding that (1) the publisher, authors, consultants and editors are not responsible for the results of any actions taken on the basis of information in this publication, nor for any omission from this publication; and (2) the publisher is not engaged in rendering legal, accounting, financial, professional or other advice or services. The publisher and the authors, consultants and editors expressly disclaim all and any liability and responsibility to any person, whether a subscriber or reader of this publication or not, in respect of anything, and of the consequences of anything done or omitted to be done by any such person in reliance, whether wholly or partially, upon the whole or any part of the contents of this publication. Without limiting the generality of the above, no publisher, author, consultant or editor shall have any responsibility for any act of omission of any author, consultant or editor.

Copyright: YourLifeChoices Pty Ltd 2021

That thing you don’t want to think about – and it’s not dying When it comes to preparing for our ‘later’ years, here’s where most Australians are at.

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Cash-strapped singles bear the brunt What drove inflation in the September quarter.

6

Where’s your money going?

Keep track of your expenses with our handy budget planner.

7

Record funding for aged care reform That’s what the government’s promised, writes economist Matt Grudnoff, but has it delivered?

8

What’s missing from the ‘care’ plan Lincoln Hopper, St Vincent’s Care Services CEO, offers his view of reform plans.

9

What you should know about at-home care He’s been there and done that, now ageing expert Peter Scutt shares the lessons he’s learnt.

12

Why is aged care ‘so expensive’?

The costs explained Industry expert Louise Biti does the maths on costs to help you understand the reality.

14

Don’t let a granny flat arrangement wreck your retirement Senior financial adviser Craig Phillips tells where you could go terribly wrong with a granny flat.

16

Modifications that can help you age at home – safely Most Australians want to age at home. Here’s what you may need to modify and how that could be funded.

18

Government update Age Pension updates, superannuation changes, key tax time dates.

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4 8 14 16 18

YourLifeChoices Retirement Affordability Index™ November 2021

3

That thing you don’t want to think about – and it’s not dying When it comes to preparing for our ‘later’ years, most Australians only have a vague idea rather than a plan, writes Janelle Ward.

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ustralians are overwhelmingly planning on ageing at home – whether that be in a property they own or one they rent.

That was the conclusive result of the YourLifeChoices 2021 Older Australians Insights Survey, which drew more than 7000 responses.

And given the frightening findings of the aged care royal commission, who could blame them?

Survey participants were asked where they intended to age. More than two-thirds (67 per cent) said at home, 8.3 per cent nominated a retirement community, 7 per cent said residential care and 3.2 per cent said with family.

But what of the complexity of both home and residential services?

‘The government has not put in place any accountability measures to stop the rorting of the system.’

Dr Sarah Russell

Alarmingly, one in five (20.8 per cent) said they didn’t have a plan.

It’s almost a ‘head-in-the sand’ view and given YourLifeChoices member feedback, we know a majority of older Australians simply do not want to think about what’s involved when the cracks first appear in their ability to live independently.

The Royal Commission into Aged Care Quality and Safety made 148 recommendations in its final report, calling for a new system underpinned by a rights-based act, funding based on need and much stronger regulation and transparency. Of course, such recommendations require adequate funding.

In the May Federal Budget, the government allocated $17.7 billion to the sector – but over five years – and provided an extra 80,000 home care packages – but over two years. Just 12 months ago, almost 103,000 were waiting for a package.

It acknowledged the need for extra staff and said it would spend more than $650 million to grow and upskill the aged care workforce.

Staff shortages and movement of staff between aged care centres was a critical factor in the hundreds of deaths in aged care in the first year of the pandemic.

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A report published in August by the Committee for Economic Development of Australia suggests that even without the minimum staffing standards set down by the royal commission, the nation’s aged care workforce needs to grow by an additional 17,000 workers per year between now and 2030.

Earlier this year, Peter Norden, the 71-year-old founder of Jesuit Social Services, prison reform advocate and honorary fellow at Deakin University, wrote of his first experience of navigating the aged care system after an operation.

“I’ve been working at a fairly high level – teaching and writing and research – and I couldn’t understand what it was all about,” Dr Norden wrote in The Age. “When I started trying to change providers, there were so many barriers and hoops to jump through that you almost felt it was a waste of time; you make so many damn phone calls.

“I found it bureaucratic, complex and difficult to feel any sense of control or that I was a partner in this.”

Dr Norden is a member of the lobby group Aged Care Reform Now, created to give older Australians and their families a voice in the movement to change aged care.

Its mission is to ensure the recommendations of the royal commission translate into action.

“It seems to me it’s not just a shortage of money, it’s a system that needs to be reformed,” Dr Norden says.

“People who are not at a super-advanced stage like myself, whose brains still mostly operate okay, want to be able to use their own judgement to make choices, and to reallocate services as their needs change, not to be on a waiting list for a year or two.”

YourLifeChoices Retirement Affordability Index™ November 2021

Mable, which describes itself as “a website that enables older Australians to connect with independent care and support workers in their local community”, is in furious agreement about the need for reform.

It analysed federal government data to show the price differences between provider-managed and self-managed home care.

It says some older Australians are being charged an astounding one-quarter of their home care funding on “administration” and “care management”, leaving only 75 per cent for direct care and support. They are then charged significantly more per hour for services such as nursing and personal care if they have a provider-managed package, Mable claims.

Fully Managed

Self Managed

While an ageing Australia has many economists worried, at least one group saw it as a marvellous challenge. Participants in the Longevity By Design Challenge sought to envisage life in Australia in 2050.

The aim was to identify ways to prepare and adapt Australian cities to capitalise on older Australians living longer, healthier and more productive lives.

Writing for The Conversation, Rosemary Jean Kennedy, adjunct associate professor of architecture and urban design at Queensland University of Technology, and Laurie Buys, professor and director of the Healthy Ageing Initiative at the University of Queensland, say that one way to support economic and social participation is to reconsider the factors – physical, regulatory and financial – that determine how our buildings, suburbs and streets are organised.

Level 1

Level 2

Level 3

Level 4

Total Annual Package Value

$8,928

$15,706

$34,175

$51,808

Median Annual Admin Costs*

$2,340

$4,160

$8,710

$12,922

Median Annual Admin Costs %*

26.21%

26.49%

25.49%

24.94%

Self Managed Annual Admin Costs^

$1,768

$2,964

$6,084

$8,840

Self Managed Annual Admin Costs %^

19.80%

18.87%

17.80%

17.06%

Public health researcher and aged care advocate Dr Sarah Russell says extra government funding for the sector was a win for aged care providers, but not for older people.

“The government has not put in place any accountability measures to stop the rorting of the system. How is it possible that a recipient of a level 4 home care package worth $52,000 receives on average only eight hours and 45 minutes of support (per week – accepted average is about 14-15 hours)?”

So what’s the solution? In essence, it’s to think about those years before you have to, which is easier said than done. It’s also about community leaders providing options that better suit healthier longer-living generations. Australians’ average life expectancy is into the mid-80s – that’s an extra 30 years since the Age Pension was introduced in 1909.

* F ully Managed Care Management + Package Management ^

S elf Managed Care Management + Package Management

Source: Federal Department of Health

The ‘challenge’ brought together 121 professionals (of all ages) plus older people to explore how baby boomers will change the landscape of living, learning, working and playing. They suggested such approaches as ‘walkable neighbourhoods’ that reduce distances between homes and services and converting typical house blocks into ‘super blocks’ where multiple generations can live.

The authors wrote: “The Longevity by Design Challenge identified a range of opportunities to create a vibrant ‘longevity’ economy by including people of all ages. Small, incremental and affordable changes towards resilient and age-friendly communities can transform perceived burdens into real assets.

“Planning communities to embrace, not exclude, people over 65 has all kinds of benefits for Australia.”

There you have it. How to make it happen? That’s the next challenge.

In the meantime, we hope you enjoy this edition of the Retirement Affordability Index™. Thinking about and organising your ‘later’ years is often the last thing you want to do, but contributions from Aged Care Steps director Louise Biti, Mable chief executive Peter Scutt, Challenger, aged care specialist Craig Phillips, senior economist Matt Grudnoff and aged care and disability support organisation ConnectAbility Australia will hopefully help clear the fog and alert you to some of the key concerns and opportunities.

YourLifeChoices Retirement Affordability Index™ November 2021

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Transport, housing, furnishings drive inflation I nflation in the September quarter was largely driven by international factors. With the world reopening after the pandemic, bottlenecks in production and transport have emerged as businesses try to ramp up production following the lockdowns. Demand for oil has also pushed up the price of automotive fuels.

house excluding the price of the land) rose 3.3 per cent. This has been caused by strong demand in construction, which has enabled builders to pass through increases in their costs. Government rates also rose (+3.3 per cent) after the end of the rates freeze that many councils had in place.

The main drivers of inflation were transport, housing and household furnishings and equipment.

Household furnishings and equipment do not usually have a big impact on inflation but for the second quarter in a row registered a big increase (+1.6 per cent). This was driven by furniture (+2.1 per cent) due to supply shortages and transport constraints.

Transport was up because oil prices continue to rise, pushing petrol prices higher (+7.1 per cent).

Automotive fuels have reached record levels, surpassing the previous high set in March 2014.

Motor vehicle prices continued to rise (+1.4 per cent) because of ongoing strength in demand and global supply constraints.

Housing increased (+1.7 per cent) because of rising building costs. New dwellings purchased by owner-occupiers (i.e. the price of building a new

Weekly expenditure for retirees aged 54+ Expenditure items Housing As a percentage of expenditure Domestic fuel & power As a percentage of expenditure Food & non-alcoholic beverages As a percentage of expenditure Alcoholic beverages & tobacco products As a percentage of expenditure Clothing and footwear As a percentage of expenditure Household furnishings & equipment As a percentage of expenditure Household services & operation As a percentage of expenditure Medical & health care As a percentage of expenditure Transport As a percentage of expenditure Communication As a percentage of expenditure Recreation As a percentage of expenditure Education As a percentage of expenditure Personal care As a percentage of expenditure Miscellaneous goods & services As a percentage of expenditure Total weekly expenditure Total monthly expenditure Total annual expenditure 6

Well-off couples

Cash-strapped singles experienced the biggest increase in prices (+1.2 per cent) because of the increase in the cost of housing. All other cohorts saw an increase of 1 per cent, largely driven by a combination of transport costs and housing.

Matt Grudnoff Senior economist, The Australia Institute

Constrained couples

Couple Couple homeowners homeowners with private on Age income Pension $187.45 $110.79 12% 13% $42.92 $32.23 3% 4% $251.49 $177.13 17% 20% $57.18 $31.03 4% 4% $29.77 $16.90 2% 2% $79.16 $34.35 5% 4% $44.41 $31.42 3% 4% $156.16 $111.30 10% 13% $207.31 $134.58 14% (+1%) 15% $33.94 $24.05 2% 3% $303.76 $103.15 20% 12% $0.62 $0.22 0% 0% $30.04 $18.23 2% 2% $91.79 $49.50 6% 6% $1,516.01 $874.9 +$15.42* +$8.65* $6,569.37 $3,791.23 +$66.83* +$37.47* $78,832.50 $45,494.72 +$801.98* +$449.58*

Cashstrapped couples

Well-off singles

Couple who rent on Age Pension $209.83 29% (+1%) $34.03 5% $160.17 22% $50.43 7% $8.94 1% $20.90 3% $16.97 2% $38.54 5% $63.99 9% $26.03 4% $67.07 9% $0 0% $12.67 2% $24.76 3% $734.31 +$7.58* $3,181.99 +$32.82* $38,183.88 +$393.86*

YourLifeChoices Retirement Affordability Index™ November 2021

Constrained singles

Cashstrapped singles

Single Single Single who homeowner homeowner rents on Age with private on Age Pension income Pension $125.95 $92.96 $165.30 15% (+1%) 19% 36% $31.04 $27.78 $23.58 4% 6% 5% $126.35 $88.81 $79.59 15% 18% (+1%) 17% $30.66 $18.19 $25.52 4% 4% 6% $19.81 $8.59 $7.08 2% 2% 2% $43.32 $20.11 $16.04 5% 4% 3% $40.07 $22.64 $12.03 5% 5% 3% $89.67 $39.71 $23.50 10% 8% 5% $109.82 $56.01 $37.77 13% (+1%) 12% (+1%) 8% $32.85 $16.96 $13.23 4% 4% 3% $141.48 $53.22 $32.12 16% 11% 7% $0.13 $0.12 $0.01 0% 0% 0% $18.71 $9.87 $8.75 2% 2% 2% $55.71 $27.12 $16.89 6% 6% 4% $865.56 $482.09 $461.42 +$8.61* +$4.92* +$5.28* $3,750.75 $2,089.05 $1,999.51 +$37.30* +$21.33* +$22.89* $45,009.03 $25,068.63 $23,994.09 +$447.64* +$256.00* +$274.68*

*Percentage and dollar changes compared with June quarter figures

How does your spending compare?

Expenditure items

Well-off couples

Constrained couples

Cashstrapped couples

Well-off singles

Constrained singles

Cashstrapped singles

Housing Rent, interest, home repairs and maintenance & body corporate fees As percentage of expenditure Domestic fuel & power Electricity, gas & oil As percentage of expenditure Food & non-alcoholic beverages Includes meals in restaurants As percentage of expenditure Alcoholic beverages & tobacco products Alcohol consumed at licensed premises As percentage of expenditure Clothing and footwear Dry cleaning, repairs & alterations As percentage of expenditure Household furnishings & equipment Outdoor furniture, floor and window coverings, linen and bedding, appliances, glassware, tableware and cutlery, tools & mobile phones As percentage of expenditure Household services & operation Cleaning and garden products, phone charges (including mobile), pest control & home cleaning services As percentage of expenditure Medical & health care Health insurance, doctor and dental fees, medicines and pharmaceutical products, prescriptions & hospital and nursing home charges As percentage of expenditure Transport Purchase, maintenance and insurance of vehicles, fuel & public transport fares As percentage of expenditure Communication Spending on telephone (including fixed line and mobile) Spending in internet services As percentage of expenditure Recreation AV equipment including TVs and pay TV, books, newspapers and magazines, camping and fishing equipment, sports equipment, internet charges, holidays & animal expenses As percentage of expenditure Education Primary and Secondary school fees (including school sport fees) TAFE and University fees (including HELP) Fees to all other private education institutions As percentage of expenditure Personal care Toiletries, cosmetics & hairdressing As percentage of expenditure Miscellaneous goods & services Stationery, watches and jewellery, interest payments on credit cards and all loans (excluding home loans), education, rates and charges on investment properties, accountant and tax fees & cash gifts As percentage of expenditure Total weekly expenditure Total monthly expenditure Total annual expenditure

YourLifeChoices Retirement Affordability Index™ November 2021

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Government promised reform, record funding – here’s what happened The aged care royal commission provided the government with a plan to reform the sector, writes senior economist Matt Grudnoff.

He outlines the ‘progress’.

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he final report from the Royal Commission into Aged Care Quality and Safety was delivered in March 2021. The stories that came out of the royal commission process were horrific and, sadly, unsurprising. It laid bare the terrible emergency that had been ongoing in aged care for decades. It was also an emergency that should never have happened.

problems would require more like $10 billion in extra funding each year.

With the release of the May budget, we got the government’s response to the royal commission.

Treasurer Josh Frydenberg announced with much fanfare that it would be putting an additional $17.7 billion into the aged care sector. A closer inspection of the numbers revealed that this would be over five years. That amounts to about $3.5 billion per year.

Well short of the minimum $10 billion required.

The royal commission also came with a comprehensive set of recommendations to reform the sector and ensure that it didn’t happen again. It was an opportunity to reset aged care Reform is something and make sure the future was very every politician wants different to the past.

The government was quick to counter the criticism that it wasn’t enough by saying that it had to be fiscally responsible. But what is more fiscally responsible – spending an additional $3.5 billion a year and failing to solve the problem or spending $10 billion a year and actually fixing it?

to have done but none But in politics there are few words that are more overused than of them want to do. ‘reform’. Reform in the political arena reminds me of the old joke that a classic of literature is a book everyone wants The government also claimed that it was providing to have read but no-one wants to read. Reform is record funding for aged care. Whenever you hear a something that every politician wants to have done politician say they are providing record funding for but none of them want to do. something, they’re trying to pull the wool over your With both sides of politics having perfected scare eyes with a meaningless statement. campaigns and enough voters seemingly happy Populations and prices go up each year. This means to buy into them to swing elections, reform has that just to keep up with the current level of care per become a lot harder. Gone are the reforming eras person, every year would need to be year of record of the 1970s and `80s. But failing to reform funding. means things just drift along and, as the royal commission clearly identified, that creates its own Worse, it is possible to have a year of record funding problems. where the quality of care per person is falling. If the funding doesn’t keep up with the growth in The stories from the royal commission did create population and the increase in prices, but is still a powerful groundswell of support for large-scale slightly higher than last year, then it is still a year of reform. And large-scale reform is what the royal record funding. Record funding is a meaningless commission found was needed. To fully implement all the reforms would cost about $20 billion in statement made only by politicians and says nothing extra funding each year. A bare minimum to fix the about the care provided.

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YourLifeChoices Retirement Affordability Index™ November 2021

What’s missing from the ‘care’ plan Lincoln Hopper, St Vincent’s Care Services CEO, offers his view of the reform needed in aged care.

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here is something truly significant missing from the federal government’s $17.7 billion aged care reform package – people.

While I support the intention of the reforms, I believe the proposed investment in staffing – primarily focused on nursing and deeply rooted in a clinical model of care – is limited and potentially misleading.

But perhaps I’m being too harsh. Budgets are about priorities and perhaps the government could simply not find an extra $10 billion a year with all the competing priorities. That is, after all, a lot of money.

Of course, in a few years the government will hand out the stage three tax cuts worth $16 billion a year. More than half of those tax cuts go to the top 20 per cent of taxpayers. Budgets are indeed about priorities.

The lack of dollars translates into a lack of care. A good example of this was the waiting list for Home Care Packages (HCP). The government announced an additional 80,000 HCPs, which sounded great – until you realised it would take two years to deliver them and the waiting list at the end of last year (2020) was 97,000. It simply won’t fix the problem.

Of most concern since the May Budget announcement has been how things have gone ominously silent. We might think the government is earnestly beavering away in the background, implementing the royal commission’s suggested reforms, ensuring that the horrible stories that were uncovered will never happen again.

This would be a reasonable assumption if the government had a track record of achievement after announcements. But the current government has perfected the art of looking busy. It makes lots of announcements without actually following through.

I fear that hearing nothing means that nothing is happening.

After all, reform is hard. It requires a plan, and dedication. The royal commission provided the government with the plan, but does it have the dedication to follow through?

Matt Grudnoff is a senior economist at The Australia Institute.

You can enjoy more of his commentary in the Spin Bin in episodes such as What the Government’s Not Telling You About the Future.

There is much more to caring than meeting someone’s medical needs. Aged care is just that – care. Most of us who work in the sector see care in a much more holistic sense, and we consider it to be a vital part of providing exceptional, all-round support, as well as ensuring our residents feel valued and safe.

We need to take a human-centred approach when working across our aged care homes; to shift away from focusing on a medical model, to one that emphasises investment in our people.

At St Vincent’s Care Services, we have over 550 lifestyle team members, volunteers and pastoral carers. These aren’t clinical roles, but their work is absolutely crucial when it comes to residents enjoying rich and meaningful lives.

So, why aren’t we talking more about these contributions when it comes to debating how to improve aged care, and provide residents with the best experience possible?

These are our residents’ homes, not a hospital, and for many, our staff are like a second family.

The work of these staff must be recognised and brought into the conversation. They shouldn’t be overlooked as they seem to have been by those with the task of delivering aged care reform.

We also know that outside of the clinical, there are a host of other staffing-related factors that influence quality outcomes, including the skills, qualifications and experience of these dedicated staff members, the quality of training, organisational culture and the capacity of managers and leaders. We can’t take a rigid, cookie-cutter approach to the nature, make-up and skills mix of staff.

This is an edited version of the original article.

YourLifeChoices Retirement Affordability Index™ November 2021

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Sponsored message from Challenger

Too many people fail to plan for aged care – don’t be one of them Two key areas that should be considered – ahead of time – when a move into residential aged care looks likely.

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lanning for residential aged care is all too often at the bottom of our to-do lists.

When the time comes to give it more careful consideration, many of us may be overwhelmed by the procedural requirements, and some of us may not be capable of having a conversation about decisions being made due to ill-health.

Input from government departments, healthcare professionals and financial institutions is likely to be required. But where to start?

1

Your financial adviser can help. Whether the first conversation with an adviser happens before, during or even after making the transition to aged care, he or she can help ensure your or your loved one’s needs – both financial and emotional – are fully considered.

If you need help managing your affairs, you can choose to give someone you know and trust the power to make decisions for you. Known as a ‘power of attorney’, it will allow the person to manage your affairs when you do not want to or are no longer able to. For example, a person may find it hard to sign documents because they have poor eyesight or unsteady hands.

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Powers of attorney can include the power to make decisions about your financial and legal affairs and to make decisions about your lifestyle (including where you live) and what medical or health treatment you should receive.

1. Finances Your adviser will need to understand your income and assets to help determine the types of fees and how much you could be asked to contribute towards your aged care costs.

He/she could ask the following questions: Are you or your loved one receiving any income support payments, for example from Centrelink or the Department of Veterans’ Affairs (DVA)?

Any such payments need to be considered when determining how much you/your loved one will be required to contribute to aged care costs. There may be records readily available, but if not, contact the relevant authority.

What are your/your loved one’s assets, income and/or liabilities? This can include savings, shares, account-based pensions, annuities, debts and loans.

YourLifeChoices Retirement Affordability Index™ November 2021

Financial statements can help identify the value of holdings. Contact with relevant financial institutions and the person’s accountant can also assist.

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2. The family home Using the family home to fund aged care can be a complicated decision, with many interdependent factors to consider.

Working out what to do with your family home is one of the biggest decisions you and your family will face when moving into residential aged care.

While some people are keen to sell their home once they no longer need it or sell the property to fund aged care accommodation costs, others choose to keep it and receive ongoing rental income from the property. There are pros and cons to both sides.

Paying aged care fees When you move into residential aged care, depending on your assets and income, you may be required to pay an accommodation contribution or accommodation payment. How you fund your or your loved one’s aged care fees may depend on your financial assets. For some, these accommodation costs may be funded from the sale proceeds of the family home.

If you choose to keep your family home, other funding strategies may be considered. You will also need to pay ongoing care costs for as long as you remain in the aged care facility. This could include the basic daily fee, a means-tested care fee and any extra service or additional fees. Depending on your level of income and assets, these costs can vary.

Who is living in the home?

To prepare for a conversation about the family home with a financial adviser, he/she will also want to know if anyone is currently living with the person moving into residential aged care.

Aged care fees could be reduced if someone continues to reside in the former home after you or your loved one transitions into residential aged care.

This will influence the funding strategy a financial adviser develops.

No additional information is required if the person residing in the former home is a spouse. Where that person is not a spouse, the adviser would need to confirm whether the person provides care and/or is a family member. How long they have lived in the former home and any income support payments they may be receiving from the government will also be relevant.

Rental property maintenance and costs While you’ll earn ongoing rental income from your property if you rent it out, you also need to consider the ongoing costs associated with maintaining the

property, such as having funds available for repairs and tenant management. And if the property is untenanted for a while; you’ll need to rely on other assets and sources of income to pay ongoing care costs.

You may also need to spend some money on the property before you rent it out to bring it up to a rental standard.

Tax and Centrelink implications If you rent out the family home, you/your loved one may have to pay tax on the rental income received. However, there are various tax offsets available – including the low income and seniors and pensioners tax offset – that may reduce the amount of tax owed.

Whether you keep or sell the family home, the decision may affect Centrelink entitlements. You or your family may also have to pay Capital Gains Tax on the property when it is eventually sold.

Depending on the value of the land there may also be Land Tax implications.

The Age Pension is worked out by an income and an assets test. Your rental income will be assessed as part of the income test, and after the first two years the property will be assessed under the assets test as well.

If you sell the home, the sales proceeds will then be considered under the income and assets test depending on where they are invested.

And finally, shop around To make sure you find an aged care facility that you or your loved one are comfortable in and that will suit your needs, you may like to visit a few different places. Remember, you can apply to as many facilities as you like. The accommodation costs for all aged care facilities are published on myagedcare.gov.au. This website also provides a description of the rooms and services available at the facility.

To find out more about aged care options, talk to your financial adviser or visit challenger.com.au/agedcare.

DISCLAIMER: The information in this article is provided by Challenger Life Company Limited ABN 44 072 486 938, AFSL 234670 (Challenger Life), is general only and has been prepared without taking into account any person’s objectives, financial situation or needs. Because of that, each person should, before acting on any such information, consider its appropriateness, having regard to their objectives, financial situation and needs. Neither Challenger Life, nor any of its officers or employees, are a registered tax agent or a registered tax (financial) adviser under the Tax Agent Services Act 2009 (Cth) and none of them is licensed or authorised to provide tax or social security advice. Before acting, we strongly recommend that prospective investors obtain financial product advice, as well as taxation and applicable social security advice, from qualified professional advisers who are able to take into account the investor’s individual circumstances. In preparing this information about taxation, Centrelink rules or benefits and/or Department of Veterans’ Affairs rules or benefits, Challenger relied on publicly available information and sources believed to be reliable, however, no representation or warranty, either express or implied, is given as to its accuracy, completeness or reliability. To the maximum extent permissible under law, neither Challenger Life nor its related entities, nor any of their directors, employees or agents, accept any liability for any loss or damage in connection with the use of or reliance on all or part of, or any omission inadequacy or inaccuracy in, the information in this article.

YourLifeChoices Retirement Affordability Index™ November 2021

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Trials and triumphs of at-home care: what you should know Former banker turned aged care system disruptor Peter Scutt never expected to be an expert advocate on ageing. He shares the lessons he has learnt about home-based care.

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ere mention of the words ‘aged’ and ‘care’ in the one sentence is often enough to strike fear into the heart of the hardiest of souls and leave a nasty aftertaste of dread – especially as the years roll by and many of us come to deal with it – for our parents and ourselves.

This is how we need to think about ourselves as we get older. If we have a health problem preventing or limiting our enjoyment of life or stopping us from doing everyday things or remaining connected with friends, we should act on it.

The right kind of assistance at the right time, whether temporary – while you regain skills or adapt to new approaches – or long term, can keep you going safely and well at home.

I’ve come a long way in my understanding of homebased care in the past eight years, since my first exposure with my parents in 2013. However, I know that most people don’t want to acknowledge the subject, let alone Being approved discuss it. But we need to change that.

In large part, the reason for this ‘ostrich attitude’ to accessing support is because we live in an ageist society that says youth is good, age is bad, and you should fear it, deny it and ignore it at all costs – even if that means making poor choices that can make your life a whole lot worse than it needs to be.

as eligible for a Home Care Package only means you’re now on that waiting list to have Two support programs one ‘assigned’ to you. There are two government

Within this mindset, the prospect of admitting to a health-related change or acknowledging any reduction in capacity that might be helped by getting support services at home, is like accepting defeat. You won’t do it unless you absolutely have no choice. I have learnt to have a different – and more appreciative – attitude to getting older, and in particular to accepting support or care at home, as well as a more simplified understanding of how it all works. This is my personal, potted guide.

A stitch in time If you value your car, you wouldn’t persistently ignore an unusual noise in the engine on the basis that you’ll deal with it if and when the engine explodes. And you know that getting your favourite shoes repaired before they’re totally ruined will give you a few more good years from them. You take the initiative, you address the problem, you save yourself money, time and inconvenience.

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The system of home-based care in Australia is designed to perform precisely this function, by subsidising services that can be delivered to people in their homes, tailored to their individual needs and situation.

programs that provide in-home support for people over the age of 65. The Commonwealth Home Support Program (CHSP) provides more ‘entry-level’ support. If you’re managing fairly well at home but just need one or two services to make life easier and safer – maybe house cleaning, transport or some home-delivered meals, for example – that might be enough.

The other program is the Home Care Package (HCP) program. These are designed for people who need more complex care and ongoing support.

There are four levels of HCPs that provide funding based on the support you need. A basic Level 1 HCP offers about $9000 a year and they scale up to Level 4, offering around $52,000 a year.

Most of the services you can get with CHSP, you can also get with a HCP. But a HCP can provide a lot more – such as nursing and allied healthcare, personal care with showering and dressing, modifications to your home and help with staying connected with the community and friends. HCP funding is also consumer-directed, meaning you can tailor the support to address your needs and preferences, including who provides the support.

YourLifeChoices Retirement Affordability Index™ November 2021

terrific but, unfortunately, being approved as eligible for a HCP only means you’re now on that waiting list to have one ‘assigned’ to you. As the government releases more packages in line with budget promises, waiting times might improve but, in the meantime, you can start researching HCP providers.

The HCP funding, while allocated to you, must be ‘hosted’ and administered by a governmentapproved HCP provider of your choice. The My Aged Care website enables you to search different providers by criteria including location, the services they provide and a range of specialised categories.

Get assessed – don’t delay If any of this sounds like a good idea for you or someone close to you, my strong advice is to drop everything and get an assessment as soon as possible. With people waiting for up to a year to receive their funding – that is, after being assessed as eligible – this urgency can’t be overstated.

There are two steps involved in assessment. The first involves providing some top-line information to My Aged Care about the reasons you, or the person in question, want an assessment. You can do this online or by calling 1800 200 422 and speaking with someone directly. It’s really important to be clear and honest with the information you provide in this first step because it could determine the type of face-toface assessment you will have in the second step and the level of support you’re likely to be offered.

This is not the time to downplay or gloss over your real situation and needs.

The second step is a face-to-face assessment in your home. There are two types of face-to-face assessments and the one you have will be decided based on the information you gave in that initial assessment. If the information you gave suggests you need only minimal support, you will be referred for assessment with a Regional Assessment Service (RAS) assessor, connected with the Commonwealth Home Support Program.

If it sounds like you need more complex support, your face-to-face assessment will be with an Aged Care Assessment Team (ACAT). The ACAT assessment will determine which of the four levels of Home Care Packages for which you are eligible.

The other big areas to compare are quality and costs and both can vary enormously. Unfortunately, it is not uncommon for people to lose between 25 and 45 per cent of the value of their HCP in administration fees, which means there’s less money to spend on actual support. Fortunately, all home care providers must publish online a full price list of their service costs as well as the fees they charge to manage your services and administer the HCP.

Choose your management approach Another consideration is the amount of involvement you want to have in managing your consumerdirected HCP. You can save on administration fees and get more support hours if you decide to selfmanage your package. Provided you stick to the guidelines, you can choose the services you need, engage the workers you want and manage the schedule according to your needs and preferences.

Getting more care time out of package funds is one reason people choose to self-manage; but for many people it is just as much about feeling they have choices and can remain in control of their lives. Selfmanagement isn’t difficult but you – or someone close to you – do need to have the time and desire to do it.

You also need to make sure the package provider you are choosing will allow you to self-manage.

Not all providers truly offer this but that number is increasing. Our website has some excellent information and resources to help people who are interested in self-management. You can also easily switch your HCP at any time to a provider that supports self-management, if your provider doesn’t.

Do your research

Investing some time, learning how everything works, and choosing the package provider that is right for you, will mean you’re absolutely ready to go when you get that golden ticket – the news that you have been ‘assigned’ your Home Care Package!

If approved, you’ll receive a letter from My Aged Care telling you what type and level of support you have been ‘approved’ to receive. That sounds

Peter Scutt is the founder and chief executive at Mable, which helps you find trusted care and support workers in your community.

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Why is aged care ‘so expensive’?

The costs explained Aged care industry expert Louise Biti does the maths on costs to help you understand the reality.

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he Royal Commission into Aged Care Quality and Safety queried the funding of residential aged care and recommended the Refundable Accommodation Deposit (RAD) be phased out.

YourLifeChoices member Richard Burrell wrote “that day couldn’t come quickly enough” and queried the basis for the charge.

He wrote: “It was recommended this process start from 1 July 2025, but will probably take some time.

In the meantime, these sometimes eye-watering amounts continue to be charged by aged care facilities.

“I’m told the RAD is used to provide security for the borrowings that fund the enterprise. Why? Other projects are funded and built without this puzzling anomaly!

“Why are they so expensive, and how are they calculated?

“The RADs cost many thousands of dollars – $500,000 is common. There is a facility in Seaforth (Sydney) that costs $900,000! Based on what?

“Leaving aside the billions of dollars the RAD provides interest-free to the facilities, this outdated fee has two big consequences: • It forces people to sell the family home.

This is cruel and wrong.

• So instead, people opt for in-home care.

Of course, there is a backlog.

“Oh dear, July 2025 will be too late for many.”

We asked an expert in the sector, Aged Care Steps director Louise Biti, to comment.

She gave YourLifeChoices this detailed explanation.

One of the myths about aged care is the perception that it is a healthcare service. It is true that in recent years, the health needs of people entering care are increasing and greater specialist healthcare is needed, but the purpose of aged care is to provide a new home – one that is more suitable for managing increasing frailty and keeping a person safe and well. As such, they do provide some health support.

Very few residential services are run by government, with most run by charities, churches, not-for-profit organisations and forprofit businesses. But the government does pay substantial subsidies to help make care affordable.

An average of $65,000 per year is paid by taxpayers for every resident in aged care.

What are the fees?

When unravelling the costs, the first thing to understand is that there are four categories of fees, and each pays for a different component of living expenses. This is not dissimilar to the costs you incur while living in the community. The table on page 15 provides a summary.

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YourLifeChoices Retirement Affordability Index™ November 2021

Fee category

Purpose

Calculation/amount

Accommodation Pays for right to Price is set by the provider, payment occupy a room and use but the resident has the the amenities. option to pay a lump sum (refundable accommodation deposit or RAD) that ‘buys’ the right to live there or a daily fee (daily accommodation payment or DAP) to ‘rent’ the room.

Basic daily fee

Means-tested care fee

Additional services fee

Contribution towards living needs, including food, electricity, heating/cooling, laundry and linen and cleaning.

Flat fee (currently $53.56 per day) paid by most residents.

Contribution towards care needs, including staff and equipment.

The annual cost can be up to $94,630, but this is subsidised by government.

A financial assessment for each person determines their contribution up to $28,792 per year (with a lifetime cap of $69,102).

Pays for additional services that add to quality of lifestyle through convenience, choices or higher quality of lifestyle.

Fee is set by the care provider based on agreed services.

Note: rates are current to 19 March 2022.

How are accommodation prices set?

As with any property transaction, the property owner sets the price at which they wish to sell. This takes into account market forces, including location and view, quality of build, available amenities and buyer demand.

When setting the price for residential care services, the care provider can set a price, but if the price is too far above the market, they may lose out to their competition unless they can demonstrate value for money. To keep prices in check and affordable, if the provider wants to charge more than $550,000 for a room, they need to submit a business case to the Aged Care Pricing Commissioner and gain approval.

Building a new aged care facility for 50 beds can easily cost $10 million to $15 million or more plus the cost of land, so they are not cheap to build.

Regardless of whether the operator is running for profit or not, the provider needs to decide how to raise the required capital. Investors will want a return for their money and banks charge interest.

Collecting a refundable accommodation deposit (RAD) from a resident provides free capital, but this is capital that must be returned when the resident departs. As such, the provider only gains the use of the money, or the interest offset that it can provide, in the interim.

Let’s take a very simplistic approach to consider why room prices might be set at the levels they are. Assume the build cost for each room averages $250,000. If a $500,000 RAD is charged, it can offset the need to borrow that room’s build cost. If the remaining $250,000 is invested to earn 2 per cent, an additional $5000 is generated in earnings.

At this rate, it would take 50 years to pay off the cost of the room.

The resident’s choice Room prices in aged care are set as a lump sum, but this does not mean a resident has to hand over this amount. Residents have a choice to pay the lump sum or to convert it into a daily fee and effectively pay rent.

This choice means people are not forced to sell their former home. People who can’t, or don’t wish to sell their home could instead pay the daily fee or use other assets to pay for their room.

For example, Bert agrees to a $500,000 accommodation payment. As he does not wish to sell his former home, he chooses to pay the daily payment of $54.93 per day ($20,050 per year). If he does not have enough cashflow, he could consider an option to borrow from the equity in his home using the government’s Pension Loan Scheme or a reverse mortgage loan or rent out his former home.

Choosing home care More people are choosing to age at home. This might prevent or delay a move into residential care, but often it is suitable only for those who have family members who can help to provide support when carers are not there.

As at 31 March 2021, 167,124 people were receiving support through a Home Care Package.

In the 2021 Federal Budget, the government announced the release of an additional 80,000 packages over this financial year and next. In addition, more than 800,000 people received support through the Commonwealth Home Support Program.

The waiting time to receive a package has been long, and continues to be a concern. But the increasing number of Home Care Packages is reducing the waiting time.

Louise Biti is director Aged Care Steps, a leader in the provision of aged care support to advise professionals, including financial advisers, accountants and lawyers. disclaimer: The information in this article is general and does not take into account your particular circumstances. We recommend specific financial tax or legal advice be sought before any action is taken to apply the rules to your specific circumstances. Aged Care Steps ABN 42 156 656 843 is holder of AFSL 486723. Current as at 27 September 2021.

YourLifeChoices Retirement Affordability Index™ November 2021

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Don’t let a granny flat arrangement wreck your retirement Senior financial adviser and aged care specialist Craig Phillips explains where you could go terribly wrong when considering a granny flat arrangement.

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he granny flat has been around for years and can be a completely viable living option for a family member or loved one who needs a little extra assistance and no longer wants to live by themselves.

A granny flat arrangement can offer a level of independence and a real alternative to retirement villages, and can be more attractive than permanent residential aged care.

If you did a quick poll on the street and asked what people believe is a granny flat, you’re likely to get a few different answers and, surprisingly, there are a few more meanings than you may think.

A granny flat is typically considered to be a self-contained unit either attached to a home or in the backyard.

A granny flat interest, as defined

by Centrelink, is a bit different as Centrelink is concerned with what type of agreement for life has been established – not so much a description of the real estate.

If family relationships break down, you may find the life interest you’ve been granted is no longer honoured. Legal action may then be required to have it enforced. If, later, you need to move to residential aged care, you may not have sufficient assets to pay for entry.

Anyone considering granting a granny flat interest … must have a specialist lawyer explain and document the agreement.

Centrelink considers a granny flat interest as one where someone ‘pays’ for a life interest or life tenancy, and the life interest or life tenancy is in a private residence that will be the person’s principal home.

Until legislation passed in June, many families were reluctant to document the changing of money as it likely meant a possible unwanted immediate capital gains tax event for the recipient of the gift.

This was leaving the older person in a vulnerable position should it not work out or the owner of the property suffers an event such as divorce, bankruptcy or a legal claim. The house may be at risk as it could form part of that person’s assets, which then become available to creditors or as part of divorce settlements.

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Anyone considering granting a granny flat interest by handing over money or titles must have a specialist lawyer explain and document the agreement. You will need to consider that you will lose control over these funds, as ownership will now be controlled by another person.

This may restrict your choice and access to what you consider ‘appropriate’ care. If you are working through this with your financial planner and he/she isn’t across the aged care landscape, it’s important you find someone who is. It’s a complicated area and it’s easy to make a mistake.

If a need to move to residential aged care is reasonably foreseeable within the next five years, it’s possible that the granny flat interest could still be counted as an assessable asset owned by you when determining how much you need to pay to enter care. You should discuss your individual circumstances with your local Centrelink/Department of Veteran Affairs office and/or seek advice.

How is a granny flat interest valued?

The value of a granny flat interest is the amount paid or transferred by someone if they: • transfer the title of their home to a person and receive a life interest in return, or • pay for the construction of accommodation on another person’s property and receive a life interest in return, or • purchase a property in another person’s name in return for a life interest.

YourLifeChoices Retirement Affordability Index™ November 2021

The Department of Social Services deprivation rules do not apply in these situations.

However, where assets are transferred in addition to one of the situations mentioned, the Social Security Act determines the granny flat interest to be valued at a different amount under the ‘reasonableness test’ rules.

Four simple ways a granny flat interest works 2. Pay for renovations on child’s home and move in 1. Move into child’s home and gift money

Granny flat interest

3. Buy new home in child’s name and move in 4. Transfer home to child and stay living there

Case study Louise* turned 80 this year and moved interstate to live with her only child. She is a widow but very independent and has no major health issues. After selling her home in Darwin, Louise has surplus funds of about $480,000, excluding her shares, which she could consider gifting to her daughter.

In this case, the family has a room for her in the house, so no construction or purchasing is happening.

Therefore, for Louise, we (Phillips Wealth Partners) needed to work out how much she could gift and create a granny flat interest and still maintain some of her Age Pension and, second, how much could she gift and retain all of her current Age Pension.

Centrelink considers there to be two ways to have a lifetime right in a property: • Life tenancy – the right to live in the property.

• Life interest – the right to use and benefit from the * Not her real name. property as the person wishes.

Louise has assets of: • cash – $10,000 • term deposits – $509,000 • shares – $220,000.

What is a reasonable amount for a granny flat interest for Louise?

The reasonable amount is the combined annual partnered Age Pension multiplied by the conversion factor. That is: $37,341.20 x 9.41 (based on age, conversion table available here), which equals $351,380.

She can create a granny flat interest with $351,380 and still be considered a homeowner for the purposes of Centrelink in this scenario.

Recalculating her Age Pension now, it would be about $17,680 per annum.

Centrelink also uses a figure called the extra allowable amount to determine whether you would then be considered a homeowner for Age Pension purposes.

The extra allowable amount is the difference in the lower asset thresholds for a homeowner couple and a non-homeowner couple, that is $621,500 minus $405,000, which equals $216,500.

Therefore, Louise could consider establishing a granny flat interest of $216,000 and is left with $532,500. Her Age Pension would now be $21,190 per annum and would not be penalised by any gifting rules.

That’s a win-win for everyone.

Craig Phillips is the director and a senior financial adviser at Phillips Wealth Partners. disclaimer: This information was prepared by Phillips Wealth Partners Pty Ltd (ABN 74624858420) trading as Phillips Wealth Partners and a Corporate Authorised Representative (No. 334567) of Insight Investment Services Pty Ltd ABN 22 122 230 835 AFSL 309 996. The information and examples are of a general nature only and should not be regarded as specific aged care, taxation, superannuation, retirement or social security advice.

It is based on the continuation of present aged care, taxation, social security, superannuation laws, rulings and their interpretation as at the date of this article.

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Modifications that can help you age at home – safely Most Australians want to age at home. Here’s what you may need to modify and how it could be funded.

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any older Australians want to continue to live in their homes, where they feel comfortable and are familiar with their surroundings, as they age. We’ve created a simple list of the most popular home modifications likely to be required.They can be a simple refurbishment or renovation depending on what needs to change in your home to help you live more independently.

Accessibility Ramps To make your home more accessible, installing a ramp to get in and out of your home will provide more freedom. You can enter and leave your home comfortably and it also provides access for those using a wheelchair.

Installing a medical alarm system in your home can offer peace of mind and the knowledge that if an emergency were to arise, the relevant services would be contacted, and help would be on the way.

There are different models, so speaking with an expert can help you choose the right device for you and your home.

Make sure the lighting is adequate as eyesight generally deteriorates with age.

It can be a simple cost-effective and practical solution to enhance your mobility around your home. Ramps can generally be installed quickly and there are portable options that are lightweight and can be moved around as required.

Widen doors Homes are generally built with standard size doorways. To move around more freely in a wheelchair within your home, doors should be widened if possible, to increase mobility and to make the home more accessible for anyone in a wheelchair. Adding night lights in hallways, and additional handrails will also help with ease of movement.

Stair lifts Having stairs in your home can make moving around more difficult when you become older or have a disability. Installing a stair lift will help to relieve the stress and discomfort of having to climb the stairs. Stair lifts are generally called chair lifts and can usually be installed quite easily in your home without the need to make any structural building changes.

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Medical alert systems

Smart devices Technology is always advancing and can be of great assistance.

Smart devices are easy to use and many offer voice control to manage different features in your home, such as lights, calling friends and family, and listening to music.

Kitchen modifications When choosing to stay at home, you should think about how your home operates and the things that you may find more difficult in the future, if not immediately.The kitchen can be a dangerous place, so it is important to make some simple modifications to help you live as independently as possible.

Flooring To help avoid any slips in the kitchen, upgrading your floor to a non-slip surface can help prevent a nasty injury from falling.

Lighting Make sure the lighting is adequate as eyesight generally deteriorates with age. To prevent tripping over objects while trying to find the switch, ensure switches are easily reached and are positioned at the entrance to rooms.

Everyday tasks such as cooking can be simpler and less stressful, by keeping your kitchen in order and making sure cabinets are organised. You should make everyday items accessible with good lighting, lower your benches and fix soft closers to cabinets and doors.

YourLifeChoices Retirement Affordability Index™ November 2021

Tech that will keep you at home longer Houses that learn which heating and lighting you need. Home-help drones and pet-sitting robots. That’s where technology is heading within 20 years, according to a report compiled by home and tech experts.

Bathroom modifications Each individual home may require different modifications to help those living there use them with ease. These are the most common modifications generally required.

Grab bars Installing grab bars in your home can provide additional support when getting up out of the bath, shower or toilet. They can be installed almost everywhere, but should be installed properly to the wall and not via suction cups to ensure they are as sturdy as possible and don’t contribute to injuries.

Hand-held shower Upgrading your shower head to a hand-held unit can be a quick and easy solution to showering comfortably without the need for assistance. The use of a shower chair could also be a great help.

Making sure all products are within easy reach – such as soap dispensers, shampoo and so on – will stop you from having to overstretch to reach them.

Further upgrades will be required if you have mobility issues and require a wheelchair.

Funding your home modifications My Aged Care There are several kinds of home modifications that can help both the elderly and those living with a disability. For those people who are aged over 65, you can apply for a home modification subsidy through myagedcare.gov.au.

Here’s what you can look forward to: • Home drones • Home apps • Tech-enabled home care • No more switches • Smart heating • Pet-caring robots NDIS For under 65s, the NDIS offers funding for design and construction to homes as part of a package, which is tailored to suit each individual’s needs and requirements. For more information visit ndis.gov.au.

Commonwealth Home Support Program This program is designed to assist older Australians live safely and independently at home. It provides services from domestic assistance to home modifications. To find out if you are eligible, apply here.

Home care packages There are a variety of home care packages available depending on your requirements and the level of care needed. The packages can provide affordable care and can be in addition to the assistance provided in the Commonwealth Home Support Program. More information is available here.

This article was written and published by aged care and disability support organisation ConnectAbility Australia. It is republished with their kind permission.

YourLifeChoices Retirement Affordability Index™ November 2021

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Government update YourLifeChoices keeps you up to date with government changes that could affect your retirement.

Increase to Age Pension rates The rate of a full Age Pension, including Pension Supplement and the Energy Supplement (formerly known as the Clean Energy Supplement), increased from 20 September. It is now $967.50 per fortnight for singles and $729.30 per fortnight for each eligible member of a couple.

Under the income test, your pension payment is reduced by 50 cents for every $1 of assessable income over the current limit to qualify for a full Age Pension, which for singles is $178 per fortnight. Once your assessable income is more than $2115.00 per fortnight, you will lose your Age Pension. Under the assets test, your Age Pension is reduced by $3 per fortnight for every $1000 you exceed the assets limit for a full Age Pension.

The Work Bonus, which was introduced in 2009, is designed to encourage people to work past the qualifying age for the Age Pension. Under the Work Bonus, the first $300 of income per fortnight derived from employment is exempt from the income test.

The next anticipated increase in Age Pension rates is 20 March 2022.

Centrelink debt notices More than 11,000 people were issued with unexpected debt notices from Centrelink after lodging their tax returns for the 2020-21 financial year. The notices claim discrepancies between income reporting and the JobSeeker and JobKeeper payments, with more than $32 million claimed to be owed.

If you received a notice and believe the debt has been raised in error, you can call the number listed on your debt notice or your regular income reporting line or the Centrelink Debt Recovery line.

If you need legal help to appeal a Centrelink decision, Legal Aid in each state may be able to help and free Centrelink-specific legal advice is available through Economic Justice Australia.

COVID Disaster Payments The COVID-19 Disaster Payment, which replaced JobKeeper and was costing the federal government around $1 billion a week, is being phased out.

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It was rolled out as a way to replace the JobKeeper payments, to help those who were affected by lockdowns when the COVID-19 Delta variant swept through the nation.

At 70 per cent vaccination rate in each state and territory, residents need to reapply for the payment each week, and at 80 per cent the payments begin to taper off.

Proof of vaccination Showing proof of your vaccination status is key to your ability to move around Australia, and with this in mind Services Australia has made it easy for this to be displayed on your device.

Once you have had all your required doses and your immunisation record has been updated, you can get your COVID-19 digital certificate.

You can add your certificate to your Apple Wallet or Google Pay using either the Express Plus Medicare mobile app or your Medicare online account through myGov. You can find a ‘how to’ here.

Super fund change A change that came into effect on 1 November 2021 means your super fund will follow you to new employment. This has been dubbed ‘stapling’ and will avoid the creation of unintended multiple super accounts when you change jobs.

YourLifeChoices Retirement Affordability Index™ November 2021