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Residential Care Example:
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When your contributions are calculated at $300 a week.
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And you confirm that your care costs $900 a week.
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Your govt subsidy will be $600 a week*. *if your property isn't in trust, $0
Passing the Residential Care Means Testing:
When you're 65 or older, you and your partner's (if you have one) total assets must be less than $273,628.
There are quirks and exclusions but:
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The average value of family home will disqualify many.
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An investment property will disqualify all.
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Term deposits, stocks and bonds are all tested.
Trusts are excluded from means testing and become more powerful over time. Including during retirement.
Family Home
The house your mum & dad bought in trust 11 years ago for $500k will be exempt today. Mum would be able to enjoy renting it out and receiving the subsidy.
New Main Home
The house you and your partner bought in trust last week in trust for $1m with a 20% deposit on a 30y loan term would be exempt from means testing in retirement.
Investment Home
The rental house you bought in trust last week for $1m with 35% deposit and a 30y loan term would be exempt from means testing in retirement.