Know how much you need to live on (and have a budget)

Tracking your spending gets a bad wrap sometimes for being dull, but when it comes to retirement planning it’s an essential. Unlike during your working years, your savings won’t be getting topped up regularly by an employer, so how long your money lasts largely depends on how well you manage it.

Start by categorising your spending into essential needs (think groceries, housing costs and utilities). From there, you can work out how much of your income is left over to spend on travel, dining out and any hobbies you might have. These are the things that add joy and variety to life, so you probably don’t want to skimp on them. But it’s all about striking a balance.

Be sure to account for inflation

Your retirement plan won’t be of much use if it assumes that today’s dollars will be worth the same in the future. To really be prepared, you need to take into account inflation and the effect it’s likely to have on your spending and saving.

One of the ways you can combat the effects of inflation is to diversify your investments. Here, it might be helpful to talk to a financial adviser about spreading your money across asset classes that serve different purposes. For example, growth assets have the potential to deliver above inflation returns, while more defensive assets can help preserve your shorter and medium term funds.

Beyond your investments, you might be able to weather any inflationary shocks by making tweaks to your lifestyle. That might mean trimming your discretionary spending, holding off on major purchases, or even re-entering the workforce on a part-time basis.

Know your Government entitlements  

Assuming you satisfy the income and assets tests, the Age Pension can be a much-needed supplement to the money you get from super. Just remember to apply as soon as you’re eligible so that any waiting times are kept to a minimum.

But there’s more on the table besides the fortnightly payments. If you qualify, Centrelink will automatically send you a Pensioner Concession Card. This can make life easier by getting you discounts on doctor visits, certain medications, energy bills, and public transport.

And if you’ve reached pension age but your income and assets are above the allowable limits, don’t worry – you might be eligible for a Commonwealth Seniors Health Card. This offers discounts on healthcare and other services, but unlike the Pensioner Concession Card, you’ll have to apply for one yourself.

Keep healthcare and aged care costs in mind

The fact we live longer than we used to might be a blessing, but it opens the door to a whole lot of logistical concerns. In particular, you’ll need to be prepared for your expenses to go up later in life as you become more dependent and require more care.

Fortunately, there are relatively low-cost residential aged care options out there, and depending on your assets and income, further government support might be available to help ease the burden. You can also choose to ‘age in place’ by accessing in-home care services, or even by fitting your home with features that make it a tad more safe.

But is it so expensive that you’ll be forced to sell your home? Fortunately, this won’t be the reality for many people. In fact, the government has several provisions in place to make sure that elderly Australians aren’t denied the care they need. Below, we explore some of the ways you might be able to cover the cost of aged care.

How is the cost of accommodation determined?

Depending on your financial situation and the quality of the facility you’re looking at, you’ll be quoted a room price as a lump sum (known as a Refundable Accommodation Deposit). This is paid upfront and returned to you or your estate once you leave or pass away, minus any amount you’ve drawn down on to cover any additional costs.

The RAD can be quite expensive, but those who are unable or unwilling to part with such a large amount of money — even temporarily — can take heart knowing they have the option of making Daily Accommodation Payments instead. This is similar to making rental payments when the alternative of buying a home is out of reach.

The daily amount payable is calculated by multiplying the RAD amount for your room by a government legislated interest rate, then dividing that number by 365 days. Payments are usually made fortnightly, in line with the Age Pension cycle. Unlike the RAD, however, payments are not refundable.

You’ll have 28 days after moving into an aged care facility to decide which of the two payment types you’d prefer. You’ll also have the option of selecting both and splitting them in any configuration you like. For example, if your room costs $400,000, you might choose to pay $200,000 upfront and the rest over time as daily payments.

Are there any other aged care fees?

Besides the accommodation costs, there are a few more fees you might encounter when considering aged care. These include:

• A basic daily fee: This is a fee that everyone pays to cover the cost of the day-to-day services like food and laundry. The maximum fee is currently set at 85% of the single basic age pension.
• A means-tested care fee: This applies to those with financial means. It takes into account assets and income, with interest from bank accounts and financial investments factored in using current deeming rates. From July 2025, it will be renamed the non-clinical care fee to differentiate it from the clinical costs that the government covers.
• Additional service fees: These are fees for services that go beyond what’s typically expected. Aged care providers are required to give residents an itemised account of these services and how much they cost.
• Extra service fee: For an extra fee, some aged care facilities will allow you to upgrade to a hotel-grade room or access higher quality meals and services.

So how does my home factor in?

When you enter an aged care facility, your home will be included in the means assessment that helps determine how much you’ll have to pay in accommodation costs. That said, it’s generally assessed at a lower rate, and if your home is still occupied by a ‘protected person’ (e.g. a spouse or dependent child) it will be exempt from assessment altogether.

This is often overlooked by many people entering aged care, who might rush to sell their home because they believe it’s preferable to pay the RAD rather than the DAP.

But there’s a lot more you’ll need to factor into your decision. For example, the money you receive from selling your home might go on to be counted as an asset, meaning you could wind up paying more in accommodation costs and means-tested care fees. You’ll also have to consider how it might affect any social security you receive.

Ultimately, whether or not you decide to sell your home will depend on your unique circumstances. To make sure you’re clear on what your options are and how they might affect you, be sure to speak to a financial adviser.

Retirement often forces people to put their spending habits under the microscope in ways that they didn’t during their working years. While you might find that you’re not spending as much in some areas, there’s every chance that new expenses will crop up. Here are just a few that you might encounter.

Boomerang children

Whether they’ve moved back home or never actually left in the first place, it’s common for young adults to be living with their parents these days.

While this might be a welcome development, it often means larger grocery and utility bills (unless, of course, your children are able to chip in).

Assisting your children in other ways

Even if your children have left the nest and show no signs of wanting to return, there’s always a chance that you’ll be asked to provide for them in other ways. That might mean paying for weddings, uni fees, and even chipping in once they have children of their own.

Perhaps the biggest one, however, is helping them to buy a home. Home prices have risen to eye-watering heights, and depending on how much help your children need to get a foothold in the market, your generosity could have a material impact on your retirement.

Providing for elderly parents

It’s not just your adult children you might be called on to assist. Australians are living much longer than they used to, and if your elderly parents are still alive they might need support too. This might mean letting them move in with your family, hiring a carer, or making senior-friendly modifications to their home.

Divorce

For many retirees who go through a divorce, the financial repercussions are sometimes greater than what younger couples experience. That’s because older divorcees generally have more to lose in divorce settlements and less time to do the difficult work of rebuilding their financial lives. Loss of the family home can also be difficult, especially considering how unfriendly rental markets can be these days.

Higher than expected inflation

Even low rates of inflation can have a large impact on the purchasing power of your money over time. If high inflation strikes, it could force you to cast aside a lot of the plans you made leading into retirement. And if recent history has taught us anything, it’s that periods of high inflation can persist for much longer than governments, central banks and everyday people are comfortable with.

Unexpected medical costs

Medical expenses tend to increase as we age, and while the more routine healthcare costs (e.g. medications and visits to specialists) might be easy to manage, a sudden injury or diagnosis of serious illness could easily throw your finances into disarray.

Aged care

Even if you had plans to “age in place” instead of entering aged care, life can throw you a curveball and force you to change your mind. The good news is that there are residential aged care options that are relatively low-cost (and financial assistance from the government is available if you’re eligible). However, you might prefer a more well-equipped facility with all the bells and whistles, which can cost significantly more.

We spoke to Louise Biti at Aged Care Steps about what can be done to diffuse the fears around aged care and create a smoother and less daunting transition into this next phase of life.

Q. Louise, fear is a complex topic. How does someone go about helping parents face their fears around moving into an aged care facility? 

Everyone’s fears are different of course, but usually it boils down to several main areas. One of those areas is the fear of things changing. As we age, we tend to grow afraid of change and the fear of moving out of a home you’ve lived in, and belongings you’ve cherished for many years is huge.

One way to approach this fear is to start the process of decluttering early. Spending time slowly going through belongings with a parent can give them time to adjust to change, but also help them work through the emotional process of deciding which items stay or go.

There are other fears that can play a big role, and getting to the root of these is really important. For example, they may fear a loss of freedom and independence. Or perhaps good food is really important to them, and they fear they will be eating substandard meals for the rest of their lives. Once you understand the things they are most worried about, you can tackle them in the aged care selection process.

Q. Selecting an aged care facility can be a huge task that requires plenty of time and research. Once you’ve identified fears, how do these help with filtering down the many options?

Understanding what really matters means that you can apply these filters when whittling down the many age care options. For example, if separation from a husband or wife is a big fear, then it may be worth considering a nearby facility where the husband or wife can visit every day without having to rely on someone for a lift.

If food is really important, explore facilities that offer menu choices. While most places don’t allow cooking, some may allow residents to leave for a family ritual Sunday lunch, for example. Others may allow you to bring in treats or a takeaway from their favourite restaurant, or for you to join them once a week for a (paid) meal. If being outdoors is really important, consider a facility whereby it’s easy to walk outside and see trees and sunsets.

Similarly, if activities are especially important, focus on asking the aged care provider questions about what hobbies, crafts, or music concerts they offer. Do they have a piano to play? If your parent is an avid gardener, try to pick a facility with nice gardens, and opportunities to be involved in it. For example, will they allow them to grow some pot plants? If not, perhaps there is a community garden nearby, where a loved one can escort them once a week. Dealing with change is no easy task, but are there things we can do to create consistency.

Q. The onset of dementia can often bring about the need for aged care. What tips do you have for searching for a ‘dementia-friendly’ facility?

The key thing here is to look into how the aged care provider has incorporated the needs of those living with dementia into the design of their facility. People living with dementia can suffer from cognitive impairments, memory loss, confusion, wandering and reduced judgement, and research1 shows that a well-set up environment can promote independence, familiarity, safety and meaningful engagement.

Dementia-friendly design provides essential prompts to help people orient themselves and navigate from place to place, with maximum accessibility but reduced risk. Examples of this might include the use of contrasting colour so that toilet seats, door handles and grab rails can be seen, removing glare and reflections from mirrors which can be confusing and frightening, or clear signage to help with wayfinding around the home.

Taking things one step further, there are innovative homes that do an awful lot around designing for dementia. For example, some aged care providers have recreated ‘village feel’ facilities with smaller, cluster-style housing designed for those living with Dementia, and local shops. Facilities such as these are starting to emerge and they may come with a higher price tag.

Q. What about when it’s time to move in? What can be done to help an elderly parent feel at home as quickly as possible?

Bringing items that hold the most sentimental value or provide reassuring familiarity is key. Photos are an obvious example, but there is likely to be limited wall space, so consider an electronic photo frame that saves space and can store more cherished memories. But there may be other things, such as a favourite arm chair or bed linen, ornaments, treasured decorations, or a vase. Speaking to the provider about what things they allow can help you get organised.

Make sure you take a radio or TV if this is not supplied, or an iPad if that’s what they are used to. Things like toiletries may be provided, but your parent may have their own preference. Clothing ideally needs to be labelled, comfortable to wear and easy to put on.

There are also things you can do on the day of arrival, such as going ahead and setting up the room so it feels like home as soon as they arrive. Arrange for your parent to arrive at a quiet time that’s not too overwhelming. And before you leave, make sure to get a thorough orientation tour to understand the schedules and times. Introductions to one or two other residents might help too, and some providers will allow family members to have the first meal in the dining room for a fee. And don’t forget to ask the provider for tips. They are highly experienced in making sure their residents are happy and comfortable.

Sources:
1 https://agedcare.royalcommission.gov.au/system/files/2020-08/RCD.9999.0409.0406.pdf

The information contained in this article represents the views and opinions of Louise Biti, who is not affiliated, associated, authorised, or endorsed by us. In addition, this information is intended for educational purposes only, and does not take into account your objectives, financial situation and needs. For further information or clarity on anything that has been discussed in this article, please consider seeking qualified and professional advice.

The Labor Party won the majority of seats in the lower house at the May Federal election this year.

With this, the Albanese Government handed down an updated 2022-23 Federal Budget at 7:30pm (AEDT) on 25 October 2022.

In this latest Budget, the Government’s policy priorities—and the proposed measures to help achieve these priorities—centre on ‘building a better future’:

• Providing responsible cost-of-living relief that delivers an economic dividend
• Building a stronger, more resilient and more modern economy
• Beginning the hard task of budget repair to pay for what is important.

Other key areas of focus in terms of proposed measures include improving women’s economic equality, ending violence against women, and gender equality, health and wellbeing.

Below we recap on some of the key proposed measures that may be relevant to you. These measures, and the information relating to them, have been sourced from the 2022-23 Federal Budget papers. Please note: These measures are yet to be passed as legislation and may be subject to change.

Individual tax
Clarifying that digital currencies are not taxed as foreign currency

The Government will introduce legislation to clarify that digital currencies (such as Bitcoin) continue to be excluded from the Australian income tax treatment of foreign currency. This maintains the current tax treatment of digital currencies, including the capital gains tax treatment where they are held as an investment.

This measure is aimed at reducing uncertainty following the decision of the Government of El Salvador to adopt Bitcoin as legal tender and will be backdated to income years that include 1 July 2021. The exclusion does not apply to digital currencies issued by, or under the authority of, a government agency, which continue to be taxed as foreign currency.

Company tax
Making COVID-19 business grants non-assessable non-exempt

In response to COVID-19, payments from certain state and territory business grants, made prior to 30 June 2022, can be made non-assessable, non-exempt (NANE) for income tax purposes, subject to eligibility. This tax treatment is only provided in exceptional circumstances, such as the severe economic consequences facing businesses during the COVID-19 pandemic.

The Government has made the following state and territory COVID-19 grant programs eligible for NANE treatment, which will exempt eligible businesses from paying tax on these grants:

• Victoria Business Costs Assistance Program Four – Construction
• Victoria Licenced Hospitality Venue Fund 2021 – July Extension
• Victoria License, Hospitality Venue Fund 2021 – Top Up Payments
• Victoria Business Costs Assistance Program Round Two – Top Up
• Victoria Business Costs Assistance Program Round Three
• Victoria Business Costs Assistance Program Round Four
• Victoria Business Costs Assistance Program Round Five
• Victoria Impacted Public Events Support Program Round Two
• Victoria LivePerformance Support Program (Presenters) Round Two
• Victoria Live Performance Support Program (Suppliers) Round Two
• Victoria Commercial Landlord Hardship Fund 3
• Australian Capital Territory HOMEFRONT 3
• Australian Capital Territory Small Business Hardship Scheme.

Energy efficiency grants for small and medium sized enterprises 
The Government will provide $62.6 million over three years from 2022–23 to support small to medium enterprises to fund energy efficient equipment upgrades. The funding will support studies, planning, equipment and facility upgrade projects that will improve energy efficiency, reduce emissions or improve the management of power demand.

Housing
Safer and more affordable housing 
The Government will invest $10 billion in the newly created Housing Australia Future Fund, to generate returns to fund the delivery of 30,000 social and affordable homes over five years.

The Government will also provide $348.6 million over four years from 2022–23 for a number of further initiatives to deliver more social and affordable housing. Funding includes, for example:

• $324.6 million over four years from 2022–23 to establish the Help to Buy scheme to assist people on low to moderate incomes to purchase a new or existing home with an equity contribution from the Government.

The Government will also establish the Regional First Home Buyers Guarantee to support eligible citizens and permanent residents who have lived in a regional location for more than 12 months to purchase their first home in that location with a minimum 5 percent deposit. A total of 10,000 places will be available each year to 30 June 2026.

Community batteries for household solar
The Government will provide $224.3 million over four years from 2022–23 to deploy 400 community batteries across Australia to lower bills, cut emissions and reduce pressure on the electricity grid by allowing households to store and use excess power they produce.

Solar banks
The Government will provide $102.2 million over four years from 2022–23 to establish a Community Solar Banks program for the deployment of community-scale solar and clean energy technologies. Funding will improve access to clean energy technologies in regional communities, social housing, apartments, rental accommodation, and households that are traditionally unable to access rooftop solar.

Superannuation
Expanding eligibility for downsizer contributions
The Government will allow more people to make downsizer contributions to their superannuation, by reducing the minimum eligibility age from 60 to 55 years of age. The measure will have effect from the start of the first quarter after Royal Assent of the enabling legislation.

The downsizer contribution allows people to make a one-off after-tax contribution to their superannuation of up to $300,000 per person from the proceeds of selling their home. Both members of a couple can contribute and contributions do not count towards non-concessional contribution caps.

This measure aims to provide greater flexibility to contribute to super and encourage older Australians to downsize sooner to a home that better suits their needs, and in turn, increasing the availability of suitable housing for Australian families.

Social security
Incentivising pensioners to downsize 

The Government will provide $73.2 million over four years from 2022–23 (and $0.4 million per year after that), including:

• extending the assets test exemption for principal home sale proceeds from 12 months to 24 months for income support recipients
• changing the income test, to apply only the lower deeming rate (0.25 percent) to principal home sale proceeds when calculating deemed income for 24 months after the sale of the principal home.

This measure will aim to reduce the financial impact on pensioners looking to downsize their homes in an effort to minimise the burden on older Australians and free up housing stock for younger families.

Lifting the income threshold for the Commonwealth Seniors Health Card
The Government will provide $69.6 million over four years from 2022–23 to increase the income threshold for the Commonwealth Seniors Health Card from $61,284 to $90,000 for singles and from $98,054 to $144,000 (combined) for couples.

The Government will also freeze social security deeming rates at their current levels for a further two years until 30 June 2024, to support older Australians who rely on income from deemed financial investments, as well as the pension, to deal with the rising cost of living.

Jobs and Skills Summit – incentivise pensioners into the workforce (with temporary work bonus expansion)
The Government will provide $61.9 million over two years from 2022–23 to provide age and veteran pensioners a one-off credit of $4,000 to their Work Bonus income bank. The temporary income bank top up will increase the amount pensioners can earn in 2022–23 from $7,800 to $11,800, before their pension is reduced, supporting pensioners who want to work, or work more hours, without losing their pension.

Modernisation to reduce wait times to access support and services
The Government will provide $87.0 million over two years from 2022–23 to improve the administration of the claims processing system and improve veterans’ services. This measure is aimed at enhancing ICT systems, including MyService and myGov to better support veterans and their families. This measure also supports the development of business cases to replace and modernise at risk legacy ICT systems.

Voluntary Income Management to replace the Cashless Debit Card
The Government will provide $217.7 million over four years from 2022–23 to abolish the Cashless Debit Card, and commence transition to voluntary income management. Participants will transition off the card from 6 March 2023, and will be able to progressively opt-in to income management and the BasicsCard on a voluntary basis. The Government will also extend and expand support services for participants transitioning off the Cashless Debit Card and individuals in current cashless welfare locations.

Child care
Plan for cheaper child care
The Government will provide $4.7 billion over four years from 2022–23 (and $1.7 billion per year after that) to deliver cheaper child care, easing the cost of living for families and reducing barriers to greater workforce participation. This includes $4.6 billion over four years from 2022–23 to:

• Increase the maximum Child Care Subsidy (CCS) rate from 85 percent to 90 percent for families for the first child in care and increase the CCS rate for all families earning less than $530,000 in household income
• Maintain current higher CCS rates for families with multiple children aged 5 or under in child care, with higher CCS rates to cease 26 weeks after the older child’s last session of care, or when the child turns six years old
• Task the Australian Competition and Consumer Commission to undertake a 12-month inquiry into the cost of child care and the Productivity Commission to conduct a comprehensive review of the child care sector
• Improve the transparency of the child care sector by requiring large providers to publicly report CCS-related revenue and profits.

Boosting parental leave to enhance economic security, support and flexibility for Australia’s families
The Government will enhance economic security, improve gender equality, and enhance and provide more flexibility for shared care arrangements at a cost to the budget of $531.6 million over four years from 2022–23 (and $619.3 million per year after that).

The Government will introduce reforms from 1 July 2023 to make the Paid Parental Leave Scheme flexible for families so that either parent is able to claim the payment and both birth parents and non-birth parents are allowed to receive the payment if they meet the eligibility criteria. Parents will also be able to claim weeks of the payment concurrently so they can take leave at the same time.

From 1 July 2024, the Government will start expanding the scheme by two additional weeks a year until it reaches a full 26 weeks from 1 July 2026.

Both parents will be able to share the leave entitlement, with a proportion maintained on a “use it or lose it” basis, to encourage and facilitate both parents to access the scheme and to share the caring responsibilities more equally. Sole parents will be able to access the full 26 weeks.

In addition, eligibility will be expanded through the introduction of a $350,000 family income test, which families can be assessed under if they do not meet the individual income test.

Aged Care
Fixing the aged care crisis
The Government will provide $2.5 billion over four years from 2022–23 to reform the aged care system. Funding includes, for example:

• $2.5 billion over four years from 2022–23 to improve the quality of care in residential aged care facilities by requiring all facilities to have a registered nurse onsite 24 hours per day, 7 days a week from 1 July 2023 and increasing care minutes to 215 miutes per resident per day from 1 October 2024.

Implementing aged care reform
The Government will provide $540.3 million over four years from 2022–23 to improve the delivery of aged care services and respond to the Final Report of the Royal Commission into Aged Care Quality and Safety. Funding includes, for example:

• $38.7 million over four years from 2022–23 to establish the Inspector-General of Aged Care and the Office of the Inspector-General of Aged Care as a Statutory Agency.
• $23.1 million in 2022–23 to support the implementation of the Support at Home Program from July 2024 through the rollout of a large scale trial of an integrated assessment tool, the establishment of a Service List Advisory Body, commissioning the Independent Hospital and Aged Care Pricing Authority to undertake a pricing study, and to consult with the aged care sector.

The Government will also extend existing grant arrangements for the Commonwealth Home Support Programme for a further 12 months to 30 June 2024, to reflect the new start date of 1 July 2024 for the Support at Home Program.

Health care
Reduced Co-payment for treatments on the PBS
The Government will provide $787.1 million over four years from 2022–23 (and $233.4 million per year ongoing) to decrease the general patient co-payment for treatments on the Pharmaceutical Benefits Scheme (PBS) from $42.50 to $30.00 on 1 January 2023.

First Nations
Delivery of a First Nations Voice to Parliament referendum – preparatory work
The Government will provide $75.1 million over two years from 2022–23 to prepare for the delivery of a referendum to enshrine a First Nations Voice to Parliament in the Constitution. The Government will also provide $5.8 million to commence work on establishing an independent Makarrata Commission.

Cyber security
Fighting online scams
The Government will provide $12.6 million over four years from 2022–23 to combat scams and online fraud to protect Australians from financial harm. Funding includes:

• $9.9 million over four years from 2022–23 to the Australian Competition and Consumer Commission for initial work on the establishment of a National Anti-Scam Centre
• $2.0 million in 2022–23 to the Department of Home Affairs to expand its arrangement with IDCARE to provide specialist identity support services, including counselling and identity recovery services for victims of identity theft
• $0.7 million in 2022–23 to the Treasury to raise public awareness of the risk of scams.

In addition, the Government will also provide $5.5 million over two years from 2022–23 for the Office of the Australian Information Commissioner to investigate and respond to the Optus data breach.

Employment
Secure Australian jobs

The Government will:

• Automatically sunset agreement-related instruments made prior to the commencement of the Fair Work Act 2009 and during the ‘bridging period’ (1 July to 31 December 2009), commonly referred to as ‘zombie agreements’, to ensure employees can access entitlements available under modern awards.
• Remove unnecessary complexity and make the Better off Overall Test simple, flexible and fair by streamlining the enterprise agreement approval process and consideration by the Fair Work Commission of whether an employee is better off under the proposed award.
• Increase the capacity of the Fair Work Commission to proactively help workers and businesses reach agreements by reducing the level of disputation required in order to access arbitration.

Other policy measures that may be of interest:

The Government will:

• Cut taxes on electric cars so that more Australians can afford them.
  • From 1 July 2022, the measure will exempt battery, hydrogen fuel cell and plug-in hybrid electric cars from fringe benefits tax and import tariffs if they have a first retail price below the luxury car tax threshold for fuel-efficient cars. The car must not have been held or used before 1 July 2022.Employers will need to include exempt electric car fringe benefits in an employee’s reportable fringe benefits amount. This measure is estimated to decrease receipts by $410.0 million and decrease payments by $65.0 million over the four years from 2022–23. The measure will be reviewed after three years.
  • In addition to above, the Government will provide $39.8 million over five years from 2022–23 to establish a National Electric Vehicle Charging Network to deliver 117 fast charging stations on highways across Australia, in partnership with the NRMA.
• Provide $12.0 million over four years from 2022–23 to community legal centres in New South Wales and Queensland to help fire and flood affected individuals to access timely legal assistance.
• Provide $80.3 million to the ATO to extend the Personal Income Taxation Compliance Program for two years from 1 July 2023. This extension will enable the ATO to continue to deliver a combination of proactive, preventative and corrective activities in key areas of non-compliance, including overclaiming of deductions and incorrect reporting of income. The funding will enable the ATO to modernise its guidance products, engage earlier with taxpayers and tax agents and target its compliance activity.
• Extend the existing ATO Shadow Economy Program for a further three years from 1 July 2023. The extension of the Shadow Economy Program will enable the ATO to continue a strong and co-ordinated response to target shadow economy activity, protect revenue and level the playing field for those businesses that are following the rules.
• Improve the integrity of the tax system by aligning the tax treatment of off-market share buy-backs undertaken by listed public companies with the treatment of on-market share buy-backs. This measure will apply from announcement on Budget night (7:30pm AEDT, 25 October 2022).
• Increase penalties for breaches of competition and consumer law to deter conduct that stifles competition and increases costs to consumers. Maximum penalties for corporations will increase from $10 million to $50 million per breach, and from 10 percent of annual turnover to 30 percent of turnover (whichever is greater) during the period the breach took place.
• Establish a new unit within the Attorney-General’s Department to scope options to establish an Anti-Slavery Commissioner to work with business, civil society and state and territory governments to support compliance with Australia’s Modern Slavery Act 2018 and address modern slavery in supply chains.
• Provide $3.4 million over four years from 2022–23 to support the development and delivery of education, technical advice and support services targeting the needs of small business employers to support the implementation of the Government’s election commitment to legislate 10 days of paid family and domestic violence leave.

Changes to measures announced in the March 2022 Budget

The Government will not proceed with the measure to allow taxpayers to self-assess the effective life of intangible depreciating assets, announced in the 2021–22 Budget. Reversing this decision will maintain the status quo – effective lives of intangible depreciating assets will continue to be set by statute. This will help to avoid the potential integrity concerns with the previously announced measure and contribute to budget repair.

The Government has reviewed and decided to not proceed with several legacy tax and superannuation measures that were announced (but not legislated) by the previous Government. Including, but not limited to:

• The 2016–17 MYEFO measure titled: Pension Supplement – changes to the payment of the Pension Supplement for permanent departures overseas and temporary absences
• The 2018–19 Budget measure that proposed changing the annual audit requirement for certain self-managed superannuation funds (SMSFs)
• The 2018–19 Budget measure that proposed introducing a limit of $10,000 for cash payments made to businesses for goods and services (a delayed start date was announced in 2018–19 MYEFO).

The Government has also decided to defer the start dates of several legacy tax and superannuation measures to allow sufficient time for policies to be legislated and implemented. Including, but not limited to:

• The 2019–20 MYEFO measure that proposed introducing a sharing economy reporting regime, from:
  • 1 July 2022 to 1 July 2023 for transactions relating to the supply of ride sourcing and short-term accommodation, and
  • 1 July 2023 to 1 July 2024 for all other reportable transactions (including but not limited to asset sharing, food delivery and tasking-based services).
• The 2021–22 Budget measure that proposed relaxing residency requirements for SMSFs, from 1 July 2022 to the income year commencing on or after the date of Royal Assent of the enabling legislation.

Written and accurate as at: Oct 12, 2021 Current Stats & Facts

When it comes to your retirement, it’s important to consider the chapters you will progress through, and plan accordingly with regard to your time, work, finances, housing and care needs.

From a care needs perspective, in your retirement years, a time may arise when you need to ask for help with looking after yourself in one or a number of areas. This help may come from your family members and friends, aged care services delivered by an aged care service provider, or a combination of the two.

There are several different types of aged care services. For example, the Commonwealth Home Support Programme, the Home Care Package, residential care, and palliative care.

Importantly, the types (and the support and help provided within each of them) are aimed at accommodating your changing needs as you get older. Below is a brief overview of the different types of aged care services.

Commonwealth Home Support Programme

Overview

In 2019-20*, 839,373 Australians were receiving care via the Commonwealth Home Support Programme (CHSP)—and of these people, 29.8% were aged 85 or older (69.0% were 60-84 years of age).

If you need entry-level care to stay living independently in your home for longer, then the CHSP may be an appropriate consideration.

The CHSP can provide services either in your home, assist with social activities in your community, or a combination of both. The services provided can include nursing care, personal care, domestic assistance, home maintenance, home modification, transport, social support, allied health support services, and food services.

Home Care Package

Overview

As at 30 June 2020*, 142,436 Australians were receiving care via the Home Care Package (HCP)—and of these people, 41.1% were aged 85 or older (57.9% were 60-84 years of age).

If you need more complex care to stay living independently in your home for longer—compared to the care received under the CHSP— then the HCP may be an appropriate consideration.

Over and above the services provided under the CHSP, the HCP includes additional higher-level services. For example, depending on the level of care you need, you may receive continence management, mobility and dexterity aids, and more complex allied health, nursing, and other clinical services care.

Residential care

Overview

As at 30 June 2020*, 189,954 Australians were receiving care (residential care) in a residential aged care facility—and of these people, 58.4% were aged 85 or older (40.3% were 60-84 years of age).

As you age, you may find (due to various reasons) you are unable to continue residing at home.

If this occurs, you may still find you need help with personal care, transport, domestic care, meal preparation and nursing care. A residential aged care facility may be an appropriate consideration here—providing an opportunity for you to receive the help you need to continue living as independently as possible.

Living in a residential aged care facility can help you with day-to-day tasks, activities of daily living (personal care), 24-hour nursing care and allied health support services.

Palliative Care

Overview

In 2018-19^, 83,430 palliative care-related hospitalisations were reported from public acute and private hospitals in Australia—and 53.6% (palliative care) and 54.2% (other end-of-life care) were aged 75 or older.

Albeit daunting to think about, at some point in your life you may be faced with a life-limiting or terminal illness. Depending on your situation, palliative care may be a consideration.

Palliative care can be provided in a range of settings such as at your home, in a private or public hospital, in a hospice, in a palliative care unit, or, in a residential aged care facility.

The delivery of palliative care may often involve a multidisciplinary team—general practitioners, nurses, specialists, allied health professionals and social workers. Therefore, the types of services may vary, depending on your individual needs and circumstances.

If you have any queries about this article, please contact us.

*Australian Government, Australian Institute of Health and Welfare. (2021). GEN Aged Care Data: People using aged care.

^Australian Government, Australian Institute of Health and Welfare. (2021). Palliative care services in Australia.