How can advisers help clients get or retain a Seniors Health Card in 2015? ... by quarantining assets and thus income produced from pool of assessable assets.
Speaking today at AUSTOCK Life’s Masterclass in Sydney, Richard Atkinson, discussed adviser strategies to assist retired clients in getting or keeping a Seniors Health Card.
“The rules for deeming account based pensions get tougher from 1 January 2015 and advisers will have to restructure assets for clients who are in danger of losing or not qualifying for this health card.
“Changes to the assessment of the Health Card and other benefits mean that income tests are now included automatically,” said Richard Atkinson, AUSTOCK Life.
How can advisers assist clients close to qualifying for the Health Card?
“Simply, there is a need to take some assets and the income they produce out of the assessable pool of assets and reduce deemed income for these retirees at risk of losing benefits that they now depend on in retirement.
“It is possible that a modern insurance bond can assist in ensuring that a person does not infringe the income qualification thresholds for various Government rebates and welfare benefits such as the Commonwealth Seniors Health Card and Senior Australian tax offset.
“During the imputation bond’s accumulation growth phase, its investment returns do not add to a personal taxable income. Such bonds can be used to lower and better manage a person’s taxable income in its accumulation phase,” said Mr Atkinson.
Contact
Richard Atkinson
Head of IFA Product and Relationships
Austock Life Limited
03 8601 2095 or 0417 541 897
RAtkinson@austock.com