New aged care reforms could see SMSF trustees getting hit with more expensive aged care accommodation fees, Taxpayers Australia has warned.
Means testing for aged care accommodation will be based on the income and assets of the recipient as opposed to income alone from 1 July 2014, Taxpayers Australia said in a statement.
“These new reforms will basically affect anybody who is looking for residential care after 1 July 2014, [but] it won’t impact anyone currently in aged [care],” Taxpayers Australia’s head of taxation, Mark Chapman, told SMSF Adviser.
“The current income-tested care fee – which is based on assessable income – will be replaced by a means-tested care fee that will be based on both assessable income and assets, and this may include your home.”
“[With] people’s assets being brought into consideration when calculating the cost of accommodation and care fees, super funds may be [affected] if they have a house as part of their trust,” he added.
Mr Chapman has advised people to consider bringing forward their entry into aged care, which would involve admittance prior to July 1 and having all financial arrangements in place before that date.
“While there are a number of factors that will influence this major decision, it is vital to know that keeping or selling your home will affect your ongoing care fees if you enter a care facility after July 1 this year,” he said.
For more on the aged care reforms, click here.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
23 Jun 2017Trustees reminded of ‘positive’ CGT news as EOFY loomsBy Katarina Taurian
23 Jun 2017SMSF practitioners told to reassure clients in 30 June lead upBy Miranda Brownlee
23 Jun 2017SMSFs warned on 30 June cut off for electronic transfersBy Staff Reporter
22 Jun 2017Westpac veteran and SMSF exec set to departBy Staff Reporter
22 Jun 2017ATO sets compliance targets for auditors in 2017-18By Miranda Brownlee
22 Jun 2017CGT relief still plaguing trustees, says former ATO execBy Miranda Brownlee
- view all
Trustees reminded of ‘positive’ CGT news as EOFY looms
A capital gains tax (CGT) issue that was causing confusion in the industry has been cleared up by the ATO, and professionals are being remin...read more
SMSF practitioners told to reassure clients in 30 June lead up
With the focus predominantly on super members with above $1.6 million, it may be worth practitioners informing clients unaffected by the ref...read more
SMSFs warned on 30 June cut off for electronic transfers
With a significant portion of Australians missing the 30 June cut off last year when making non-concessional contributions, Colonial First S...read more
- view all