Legislative change in aged care requires advisers to have access to the right tools

From

Louise Biti

Legislation is subject to constant change and new opportunities arise as a result. Even changes that are not directly related to aged care could create new strategy options for aged care.

“Many clients moving into residential care may decide to sell their homes. The 1 July change to superannuation contribution rules provide an opportunity for these clients to consider whether to take advantage of “downsizer” contributions for estate planning purposes” says Assyat David, Director of Aged Care Steps.

The implications of such strategies need to be assessed in light of the client’s full circumstances and the interaction between aged care, Centrelink and taxation to meet the client best interest duty. This may require advisers to have access to software and tools that effectively model and compare strategies.

Understanding aged care and advice on how to fund the costs is increasingly a concern for clients – with more and more clients seeking advice.

“Further changes to aged care legislation and the impact on Centrelink/DVA entitlements can be expected as the Government deals with the increasing need for care by older Australians and the rising cost of subsidising care services. This is likely to result in changes to increase client contributions” David said.

To be successful, advisers need to ensure their software, calculators, marketing and other tools are constantly revised to keep up to date with the regular changes to aged care legislation and related strategies. “Otherwise, advisers risk providing inaccurate and inappropriate advice to clients” according to David.

“Advisers who provide aged care support have a far greater ability to enhance their client service proposition, expand their reach with their client’s family and professional referrers as well as capture the intergenerational wealth transfer” said Biti.

Aged Care Steps provides leading aged care software. The ACS Advice GeneratorTM is equips advisers to model the full range of care scenarios and develop strategic advice. It creates efficiencies in the advice process by significantly reducing the time taken to prepare advice documents

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