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Millions of Aussies to receive cash boost as welfare payments rise

Millions of Australians who rely on welfare payments will receive a much needed cash boost as of Friday, thanks to an indexation boost. Recipients of the age and disability pensions, rent assistance, carer payments, and JobSeeker payments will all receive the increase. Age pensioners, as well as those on the disability pension and carer payments, will see an increase of $28.10 a fortnight for singles and $42.40 a fortnight for couples. This boost will take the total payment per fortnight, including energy supplement, to $1114.40 for singles and $862.60 for each member of a couple. Maximum rates of Commonwealth rent assistance will also be increased by 10 per cent from today, with indexation applied on top, as single recipients, with no children, renting on their own, and receiving the maximum rate will get an additional $23 per fortnight in rent assistance. For families with one or two children, their payment will increase by $27.02 per fortnight. Single JobSeeker recipients with an assessed partial capacity to work of zero to 14 hours per week will move to the higher rate of JobSeeker, receiving $849.50 a fortnight (including the energy supplement and pharmaceutical allowance). "This indexation will deliver timely boosts to people receiving allowance payments and pensions, ensuring that these vulnerable cohorts have more money in their pockets for everyday expenses," Social Services Minister Amanda Rishworth said. A full breakdown of the payment changes <a title="can be found here" href="http://www.dss.gov.au/about-the-department/benefits-payments/previous-indexation-rates" target="_blank" rel="noopener">can be found here</a>. Image credits: Shutterstock

Money & Banking

Cash boost for millions of Aussies as indexation kicks in

Millions of Australians are set to get a cash boost within weeks as the Services Australia payments are indexed on top of additional increases to Rent Assistance payments, with the changes coming into effect on September 20 The indexation will be applied to a range of pensions and payments including the Age Pension, Disability Support Pension and Carer Payments, Commonwealth Rent Assistance, JobSeeker, and Parenting Payments. The indexation increases of up to $41.50 a fortnight will vary based on the payments. Centrelink JobSeeker recipients will receive an extra $71.20 per fortnight. “Single JobSeeker Payment recipients with an assessed partial capacity to work of 0 to 14 hours per week will move to the higher rate of JobSeeker, receiving $849.50 a fortnight,” the Department of Social Services said. The maximum rates of Commonwealth Rent Assistance will be increased by 10 per cent. For families with one or two children, he Rent Assistance fortnightly payment will increase by $27.02. Single age pensioners will see an increase of $28.10 to their fortnightly payments, and recipients in a couple will receive a combined $42.40 increase to their payments. The same increase will apply to the Disability Support Pension and Carer Payment. Single recipients receiving the fortnightly Parenting Payment will receive a $19.80 increase, while single recipients without children will get a $15.30 boost. Image: Shutterstock

Money & Banking

Thousands of eligible Aussies to receive cost-of-living payments

Around 210,000 eligible South Australian households will receive a cost-of-living payment this week, including pensioners, Centrelink recipients and low-income earners. A Cost of Living Concession of $255.60 will be paid to all eligible households, with the annual payments made to eligible tenants and self-funded retirees doubled to match the amount given to homeowners. The payment is part of the state government's $266.2 million cost-of-living relief package announced in this year's state budget. This included the one-off additional payment of $243.90 to households who received last year's cost-of-living payment in June. South Australia's Premier Peter Malinsauskas said the government had delivered the “single largest cost-of-living assistance package in South Australia’s history”. “We know people are doing it tough and cost-of-living pressures are continuing to have an impact on many South Australians,” he said. “In the past two months, our government will have issued more than $100 million in targeted cost-of-living relief to South Australian households.” Pensioners and other card holders including, the Pensioner Concession Card, Veteran Gold Card, Low Income Health Care Card and Commonwealth Seniors Health Card, as well as low-income households and those receiving Centrelink payments including JobSeeker, the Parenting Payment and Youth Allowance, are eligible to receive the SA Cost Of Living Concession. Those who want to receive the concession for that financial year will need to apply <a href="https://www.sa.gov.au/topics/care-and-support/concessions/household-concessions/cost-of-living-concessions" target="_blank" rel="noopener">online</a> by December 31 and only one person per household can receive the payment and it will be based on your circumstances on July 1. Those who have previously received the payment and whose circumstances haven't changed don't need to reapply. The payments started rolling out this month, with Human Services Minister Nat Cook saying that all payments should come through by early next week. “This includes everyone who received a payment last year and who is still eligible, as well as new applications which have been processed up to now,” Cook said. "Anyone who thinks they might be eligible for cost-of-living support should head to the sa.gov.au website to have a look at the eligibility criteria." Other states have also provided cost-of-living support, with eligible seniors in Western Australia able to receive a Cost of Living Rebate of $107.12 for singles and $160.68 for couples. While in the ACT, apprentices and tradies in the state can get a one-off $250 Cost Of Living payment if they are employed by an ACT employer. NSW has a few cost-of-living initiatives including up to $350 energy rebates for eligible households, and up to $4,220 early childhood fee relief for 3 to 5-year-olds attending eligible community and mobile preschools. Image: Shutterstock

Money & Banking

Readers response: What are your thoughts on the increasing use of digital payments?

While technology continues to advance, so does the way we pay for things. Many shopping outlets have turned to using digital payment methods rather than cash, which has divided many who find it easier to use cold hard cash than rely on technology. We asked our readers their thoughts on digital payments and the response was overwhelming. Here's what they said. Joan Hughes - Couldn’t go shopping due to bad pains in my leg and back, so my grandson did an online shop. Tried to use my card 5 times but wouldn’t accept it, so had to use my granddaughter's. This is the 3rd time my card has been rejected. Rubbish system, cash is definitely best. Johanna Shakes - Very hard to adjust for elderly. Debra Walker - Hate it! Cash is king. Lex Jordan - I think we should all stand and boycott these companies that don't accept cash. Patricia Tebbit - Don't mind using cards but access to cash is imperative. Think of small charity raffles, garage sales & countless other things where cash is required. Lyn Bradford - I love it, I use 95% card, 5% cash. So much easier. David Taylor - Just making it easier for hackers. Jennifer Bucktin - Cash is best. If digital goes down, you can't use anything. Steve Smith - The digital age is here to stay so it's going to be better for all to get used to it. Quentin Brown - Love them both, digital and cash as it's much easier to pay bills etc. Of course you have to be smart and not gullible. Why can't we have both? Kath Sheppard - Cash is king, a lot safer as well, can't overspend either or be charged fees. Image credits: Shutterstock

Money & Banking

Aussies working in "priority occupations" eligible for cash increase

Thousands of hard-working Aussies who work in certain areas are now eligible for new training and support payments of up to $10,000. The initiative comes to support Australians working in sectors with a high demand for skilled workers, and a commitment to clean energy. From July 1st, thousands of apprentices working in what the government deems as “priority occupations” are eligible for the $5,000 Australian Apprenticeship Training Support Payment. If those priority occupations also offer exposure and experience in “clean energy”, apprentices are instead eligible for the more lucrative New Energy Apprenticeship Support Payment of up to $10,000. The list of "priority occupations" is extensive and includes aged care workers, arborists, bakers, beauty therapists and many more. According to the Department of Employment and Workplace Relations (DEWR), the jobs are characterised by a strong current demand for skilled workers, and a strong demand expected in the future. The clean energy jobs also include many different professions, with agricultural and agritech technicians, automotive electricians, regular electricians, gas fitters, glaziers, joiners, plumbers and welders all included. The full list of priority jobs can be found on the <a href="https://www.dewr.gov.au/skills-support-individuals/resources/appendix-australian-apprenticeship-priority-list-1-january-2024" target="_blank" rel="noopener" data-link-type="article-inline">Department of Employment and Workplace Relations website.</a> For the Australian Apprenticeship Training Support Payment, the $5000 payment comes in four instalments over two years, while the New Energy Apprentice Support Payment is paid out over the course of the apprenticeship — up to $5000 for part-time apprentices and up to $10,000 for full-time apprentices. It is hoped the payments will incentivise apprentices to remain on the career pathway. Image credits: Shutterstock

Money & Banking

Aussie carers to receive a hefty cash boost

Australian carers are set for a hefty financial increase in addition to their ongoing support payments from July 1st. <a href="https://www.servicesaustralia.gov.au/carer-supplement" target="_blank" rel="noopener">Services Australia</a> confirmed that those receiving the Centrelink Carer Supplement will see a $600 cash boost automatically hit their bank accounts between July 3rd and August 2nd. Carers will receive the $600 annual supplement for each of the carer payments they receive. That includes the Carer Payment, which provides income support for over 300,000 Australians who, “because of the demands of their caring role, are unable to support themselves through substantial paid employment.” The payment will also supplement recipients of the Carer Allowance, which can be received in addition to income support payments, and is received by over 640,000 carers who “provide daily care and attention at home for a person with a disability, severe medical condition or who is frail and aged”. Those receiving the Department of Veterans’ Affairs Partner Service Pension and Carer Allowance, and the Department of Veterans’ Affairs Carer Service Pension will also be eligible for the cash boost. “How much you get depends on the percentage of care you provide,” Services Australia said. “You’ll get a Carer Supplement for each eligible payment you get. For example, if you get a Carer Payment and a Carer Allowance, you’ll get two Carer Supplements.” “This payment doesn’t add to your taxable income,” Services Australia said. Image credits: Shutterstock

Money & Banking

Aussies hit with "hidden fees" for using common payment method

Millions of Aussies have copped up to $1 billion in "hidden fees" for choosing to use one common payment method. Many are unaware about the secret extra charges that come with using the tap-and-go payment method, as millions of customers use it as the preferred way to pay and go. However, according to financial counsellor Scott Pape, also known as The Barefoot Investor, while tapping your card may be easier, it might not be great for your bank account. “What most people don’t know is that, when they tap, their bank generally defaults that payment through Visa or MasterCard, who pays them a fee — instead of defaulting that payment through the much cheaper bank-owned EFTPOS,” Pape said in his column for the <a href="https://www.dailytelegraph.com.au/business/barefoot-investor/the-common-smartphone-app-thats-ripping-you-off/news-story/0b71afa29c86faf2b938c44f93bbc8d6?amp" target="_blank" rel="noopener" data-link-type="article-inline">Daily Telegraph</a>. While some businesses choose to absorb the cost, others pass it on to the customer as a surcharge, as Pape says, “Talk about a rort.” According to the Royal Bank of Australia (RBA), Visa and Mastercard are generally more expensive for merchants than the EFTPOS network. Payments through EFTPOS are generally about 0.3 per cent of the transaction value, while Debit Mastercard and Visa Debit may cost many some people about 0.5 per cent. Mastercard and Visa credit could cost customers more than 0.75 per cent of the transaction, while American Express card payments are even more, charging merchants 1 to 1.5 per cent. Thankfully, according to Pape, there are ways to avoid paying the extra fees. If your bank card is attached to your smartphone, you can change the default payment setting. “On an iPhone, open ‘Settings’, go to ‘Wallet & Apple Pay’, then tap your debit card,” Pape said. “Then look for ‘Payment Option’. It will generally have ‘MasterCard’ or ‘Visa’ preselected, but instead you should select ‘EFTPOS SAV’.” This is not allowed on all cards, however, and those who use Android will need to check with their bank if a possible solution exists. <div> </div> The other way to avoid paying the surcharges is to just start inserting or swiping your card again. “I know it’s annoying, but if you swipe and insert your card you can choose ‘cheque’ or ‘savings’ and it’ll go through the EFTPOS system, which at the bigger retailers means you’ll be less likely to be charged,” Pape said. Image credits: Shutterstock

Money & Banking

Millions of eligible Aussies about to receive financial boost

Starting this Wednesday, millions of Australians relying on Centrelink benefits will see a welcome increase in their payments. With indexation kicking in, fortnightly boosts ranging from $14 to $30 will be allocated to eligible recipients, depending on their specific circumstances and the type of payment they receive. This adjustment will not only benefit current beneficiaries but also extend support to more individuals, with an additional 77,000 parents now qualifying for higher payment rates. The eligibility criteria for certain payments have been expanded, particularly for parents whose youngest child is under 14, a significant extension from the previous threshold of under eight. Income and assets limits tied to these payments will also experience an uptick in line with the indexation process, offering further relief to recipients. But how exactly will these increments manifest across different categories of payments? For single parents, the fortnightly payment will see a boost of $17.50, while partnered parents will witness an increase of $12.30 individually. Moreover, the income free area will rise to $1,345 for each person, an enhancement of $20 per fortnight. Jobseekers with children or those aged over 55 will receive an additional $14.40 fortnightly. Single JobSeeker recipients without children and individuals aged over 22 on ABSTUDY will enjoy a $13.50 increase per fortnight, with couples receiving an extra $12.30 each. Rent assistance, however, will see relatively modest increments, ranging from $2.27 to $3.40, depending on the recipient's family situation. For those on the age pension, disability support pension, and carer payment, the increase is more substantial, with singles receiving an extra $19.60 and couples combined receiving $29.40 each fortnight. This brings the maximum rate of the pension to $1116.30 for singles and $1682.80 for couples, including pension and energy supplements. Amanda Rishworth, the Social Services Minister, explains that indexation plays a crucial role in ensuring that welfare recipients can cope with inflation and the rising cost of living – and that addressing these pressures remains a top priority for the government. This increase in Centrelink payments comes at a critical time when many Australians are grappling with economic uncertainty due to various factors, including the ongoing pandemic. While these adjustments may seem modest to some, they can make a significant difference for those relying on welfare support to make ends meet. It's essential for eligible individuals to stay informed about these changes and ensure they receive the full benefits they're entitled to. For those who may be unsure about their eligibility or how to navigate the system, seeking assistance from Centrelink or relevant support services can provide valuable guidance. As the cost of living continues to evolve, initiatives like indexation serve as vital mechanisms for maintaining the welfare safety net and supporting vulnerable members of society. By keeping pace with economic realities, these adjustments strive to provide meaningful relief to those who need it most, contributing to a more equitable and inclusive society for all Australians. Image: Getty

Money & Banking

Millions of Aussies to get cash boost in weeks

Millions of Australians are set to receive more money when payments are indexed. On March 20, those on the age pension, disability support pension and carer payment will be pocketing extra money. Single people on the pension and carer payment can expect an extra $19.60, with maximum amount increasing to $1116.30. For couples, the rate will go up $29.40 per fortnight, with the maximum being $1682.80. People on rent assistance, JobSeeker, single parenting payments and ABSTUDY will also benefit from payment increases, with single parenting payment going up by $17.50 a fortnight. Single JobSeeker recipients with no kids, and people over 22 on ABSTUDY, will get an extra $13.50 per fortnight, while each member of a couple will get an additional $12.30 per fortnight. The government has also changed the eligibility criteria for parents seeking welfare payments, with the last budget revealing that 77,000 parents will receive benefits for the youngest child up to the age of 14 instead of eight. The income and assets limits will also be increased in line with indexation in March. Social Services Minister Amanda Rishworth said that these changes will be implemented to ensure that Centrelink recipients would be able to have more money in their accounts, with the rise in cost-of-living. “Our number one priority is addressing inflation and cost of living pressures,” Rishworth said. Image: Getty

Money & Banking

“Completely tacky”: Bride slammed for asking for dinner payment

A bride has caused a stir online after asking if it is appropriate to ask her wedding guests to pay for their meal when they RSVP to the big day. The woman took to a popular wedding Facebook page to ask the opinions of other brides, sharing an example of her invitation created by her wedding planner. The invitation asks guests to confirm whether or not they will be attending the nuptials, before asking if the guest intends to eat at the wedding ceremony, and which meal they would prefer. The price of each meal was also included: $20 for grilled chicken with rice, mashed potatoes and green beans and $25 for a salmon alternative. “We invite you to eat with us but ask for you to provide your own payment. Please select which meal you'd prefer,” the invite stated. “My wedding venue requires me to purchase food through them for the reception, but has said people sometimes choose this option,” the woman wrote on Facebook. “Nothing about my reception is very typical anyway, SO I'm wondering how insane or rude or cost-effective/smart this is.” “The planner set me this as an example of how to present it to guests.” But when the post was quickly criticised by others, the bride clarified the event was more of a “fun dinner party” rather than a “wedding” as she and her partner had already legally married five months prior. “Ultimately I'll do what I want BUT I did not choose this option. It was only a suggestion from the venue that I was curious about others' opinions on,” she added. “This is for the reception. I'm most definitely not asking for money or gifts and by the time they come to the reception, we will have already been married for five months.” The post was shared in another wedding shaming Facebook group and critiqued by dozens of wedding experts. “Oh hell no! This is completely tacky!” one wrote, another said, “So she asks if it is rude then gets offended when people say it's rude?” “I am a veteran pro planner and would NEVER suggest this!” another said. Someone else wrote, “I'm especially shaming the venue for suggesting that people often pawn off the cost of dinner to their guests. Encouraging rude behaviour.” Image credits: Getty Images / Facebook

Food & Wine

Millions of Aussies set for a pension boost

Millions of Australians are set to receive a generous cash increase when an imminent welfare payment indexation comes into effect. Those on age pension payments from Centrelink will see a boost to their payment from Tuesday. According to figures from the Department of Social Services, single pensioners will receive an increase of $32.70, taking their payments to $1096.70 a fortnight. Couples on the adult pension will have their fortnightly payments increase by $24.70 to $826.70. Those on Jobseeker will also receive a boost to their payments, as payments will increase by $56.10 a fortnight to $749.20 for single people aged 22 or more with no children, and by $57.30 a fortnight for those with children to $802.50. Single people aged 55 or over will also have payments increased to $802.50 after nine months. Partnered people on Jobseeker will get a $54.80 increase to $686 a fortnight. Centrelink recipients on rent assistance, youth allowance and Austudy payments will also receive a boost to their fortnightly payments. Despite the increases across many welfare recipient groups, the Australian Council of Social Services says the increases are not enough. ACOSS said people almost three quarters of people they had surveyed on income support were eating less or skipping meals as the ongoing cost of living criss worsens. Half of the respondents said the incoming increase would not help at all, prompting the ACOSS to call for income support to at least match the pension rate. Image credits: Getty Images

Money & Banking

Lump sum, daily payments or a combination? What to consider when paying for nursing home accommodation

<a href="https://theconversation.com/profiles/anam-bilgrami-1179543">Anam Bilgrami</a>, <a href="https://theconversation.com/institutions/macquarie-university-1174">Macquarie University</a> Moving yourself or a loved one to a nursing home can be <a href="https://theconversation.com/should-we-move-our-loved-one-with-dementia-into-a-nursing-home-6-things-to-consider-when-making-this-tough-decision-189770">emotional and difficult</a>. While some have their nursing home accommodation costs fully covered by the government (based on a <a href="https://www.myagedcare.gov.au/how-much-will-i-pay">means test</a>), most will have to pay their own way. The average lump sum room value is <a href="https://www.health.gov.au/sites/default/files/documents/2021/08/ninth-report-on-the-funding-and-financing-of-the-aged-care-industry-july-2021.pdf">A$334,000</a>. Choosing how to pay can make this time even more challenging, particularly for those with <a href="https://theconversation.com/would-you-pass-this-financial-literacy-quiz-many-wont-and-its-affecting-expensive-aged-care-decisions-175063">low financial literacy</a>. This is an important and complex decision. It can affect your income, wealth, means-tested aged care fee, and bequests. Here are some things to consider before you decide. <h2>3 ways to pay</h2> You can <a href="https://www.myagedcare.gov.au/understanding-aged-care-home-accommodation-costs">pay</a> for a nursing home room in three ways. You can pay the entire room price as a one-off, refundable lump sum (a “refundable accommodation deposit”, sometimes shortened to RAD). This lump sum is refunded to the resident or their estate when the person leaves the nursing home (if they move or pass away). The refund is <a href="https://www.myagedcare.gov.au/aged-care-home-accommodation-refunds">guaranteed by the government</a>, even if a provider goes bankrupt. People who don’t want to pay a lump sum can instead choose rent-style, “daily accommodation payments” (sometimes shortened to DAP). These are fixed, daily interest-only payments calculated on the total room price. The rate at which they are calculated is known as the “maximum permissible interest rate” or MPIR. The maximum permissible interest rate is set by the government and is currently <a href="https://www.health.gov.au/sites/default/files/2023-06/base-interest-rate-bir-and-maximum-permissible-interest-rate-mpir-for-residential-aged-care_0.pdf">7.9%</a> per annum. The <a href="https://www.health.gov.au/our-work/residential-aged-care/managing-residential-aged-care-services/managing-accommodation-payments-and-contributions-for-residential-aged-care#accommodation-payment">formula</a> for a daily accommodation payment is (RAD × MPIR) ÷ 365. Unlike lump sums, daily accommodation payments are not refunded. The third option is a <a href="https://www.health.gov.au/our-work/residential-aged-care/managing-residential-aged-care-services/managing-accommodation-payments-and-contributions-for-residential-aged-care#accommodation-payment">combination payment</a>. This means paying part of the room price as a lump sum, with daily payments calculated on the remaining room amount. On leaving the home, the part lump sum is refunded to the resident or their estate. With a combination payment, the consumer can choose to pay whatever amount they like for the lump sum. The table below shows three different ways someone could pay for a room priced at $400,000. <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/540310/original/file-20230731-130241-shaphm.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/540310/original/file-20230731-130241-shaphm.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/540310/original/file-20230731-130241-shaphm.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=432&fit=crop&dpr=1 600w, https://images.theconversation.com/files/540310/original/file-20230731-130241-shaphm.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=432&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/540310/original/file-20230731-130241-shaphm.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=432&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/540310/original/file-20230731-130241-shaphm.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=542&fit=crop&dpr=1 754w, https://images.theconversation.com/files/540310/original/file-20230731-130241-shaphm.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=542&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/540310/original/file-20230731-130241-shaphm.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=542&fit=crop&dpr=3 2262w" alt="" /></a><figcaption><a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></figcaption></figure> So which is best? It’s impossible to say. It depends on a person’s circumstances, family situation, finances, preferences and expected length of stay. <h2>Why do some people choose a lump sum?</h2> One downside of a lump sum (or part lump sum) is that choosing this option means this money is not invested elsewhere. By handing over the lump sum, for example, you forgo returns you could have made by investing this same money into property or stocks over the period of your nursing home stay. On the other hand, paying lump sum means you get to avoid the daily interest payments (the 7.9% in the table above). So you could potentially be better off paying a lump sum if you think there’s no way you could make investment returns on that money that are substantially higher than the interest you’d be charged through daily payments. One advantage of choosing a lump sum is it’s considered an <a href="https://www.dva.gov.au/get-support/health-support/care-home-or-aged-care/help-pay-home-or-aged-care/residential-aged-0">exempt asset</a> for pension purposes; some people may get more <a href="https://www.afr.com/wealth/personal-finance/five-things-you-need-to-know-about-aged-care-deposits-20200302-p54606">pension</a> if they pay the lump sum. The lump sum, however, does count as an asset in determining the <a href="https://www.health.gov.au/our-work/residential-aged-care/charging-for-residential-aged-care-services/residential-aged-care-fee-scenarios-for-people-entering-care-from-1-july-2014">means-tested care fee</a>. And if you sell your house, remember any money leftover after you pay the lump sum will be counted as assets when you’re means-tested for the pension and means-tested care fee. <h2>Why might some people prefer daily payments?</h2> Not everyone can can afford a lump sum. Some may not want to <a href="https://theconversation.com/is-it-worth-selling-my-house-if-im-going-into-aged-care-161674">sell their home</a> to pay one. Some may want to hold onto their house if they think property prices may increase in the future. Daily payments have recently overtaken lump sums as the most <a href="https://www.health.gov.au/sites/default/files/documents/2021/08/ninth-report-on-the-funding-and-financing-of-the-aged-care-industry-july-2021.pdf">popular payment option</a>, with 43% of people paying this way. However, recent <a href="https://amp-smh-com-au.cdn.ampproject.org/c/s/amp.smh.com.au/money/super-and-retirement/aged-care-interest-rate-increase-sees-daily-payments-almost-double-20230324-p5cuz2.html">interest rate rises</a> may slow or reverse this trend. And if a spouse or “<a href="https://www.dva.gov.au/get-support/health-support/care-home-or-aged-care/residential-aged-care/aged-care-costs">protected person</a>” – such as a dependant or relative that meets certain criteria – is still living in the house, it’s also exempt from assets tests for the pension and other aged care fees. If the home is vacated by a protected person, its value is still excluded from the pension means test for <a href="https://www.dva.gov.au/get-support/health-support/care-home-or-aged-care/help-pay-home-or-aged-care/residential-aged-0">two years</a> (although rental income is still assessed). If you do not anticipate a lengthy nursing home stay, daily payments may potentially be the easiest option. But it’s best to consult a financial adviser. <h2>What does the research say?</h2> My <a href="https://www.mq.edu.au/__data/assets/pdf_file/0007/1190086/What-drives-end-of-life-financial-decisions.pdf">research</a> with colleagues found many people choose the lump sum option simply because they can afford to. Those <a href="https://ahes.org.au/portfolio-items/entering-aged-care/">owning residential property</a> are more likely to pay a lump sum, mostly because they can sell a house to get the money. People who consult financial advisers are also more likely to choose lump sums. This may be due to <a href="https://www.afr.com/wealth/aged-care-costs-most-opt-for-pay-as-you-go-20181023-h170g4">financial advice</a> suggesting it’s tough to earn investment returns higher than what you’d save by avoiding the interest charged in the daily payment option. Some aged care providers <a href="https://www.mq.edu.au/__data/assets/pdf_file/0003/1164243/the-role-of-refundable-accommodation-deposits-FINAL.pdf">prefer</a> lump sum payment since they <a href="https://www.agedcarequality.gov.au/providers/prudential-standards/permitted-use-refundable-deposits">use</a> these to renovate or refurbish their facilities. But providers are not allowed to influence or control your decision on how to pay. The recent Royal Commission into Aged Care recommended <a href="https://agedcare.royalcommission.gov.au/sites/default/files/2021-03/final-report-recommendations.pdf">phasing out</a> lump sums as a payment option, leaving only daily payments. While that would reduce the complexity of the payment decision and remove the incentive for providers to sway decisions, it would also reduce consumer choice. <h2>Is there anything else I should know?</h2> Some 60% of people we <a href="https://www.mq.edu.au/__data/assets/pdf_file/0007/1190086/What-drives-end-of-life-financial-decisions.pdf">surveyed</a> found the decision complex, while 54% said it was stressful. It is best to seek professional <a href="https://www.myagedcare.gov.au/understanding-aged-care-home-accommodation-costs#financial-advice">financial advice</a> before you decide. Services Australia also runs a free <a href="https://www.servicesaustralia.gov.au/what-financial-information-service?context=21836">Financial Information Service</a> that can help you better understand your finances and the payment decision. But it does not give <a href="https://www.servicesaustralia.gov.au/financial-information-service-officers?context=21836#a2">financial advice or prepare plans</a>. You have <a href="https://www.health.gov.au/our-work/residential-aged-care/managing-residential-aged-care-services/managing-accommodation-payments-and-contributions-for-residential-aged-care">28 days to choose a payment method</a> after admission, and six months to pay if you <a href="https://www.health.gov.au/our-work/residential-aged-care/managing-residential-aged-care-services/managing-accommodation-payments-and-contributions-for-residential-aged-care">choose a lump-sum payment</a>. In the interim, you will be charged daily interest payments on the room price.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/207405/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/anam-bilgrami-1179543">Anam Bilgrami</a>, Research Fellow, Macquarie University Centre for the Health Economy, <a href="https://theconversation.com/institutions/macquarie-university-1174">Macquarie University</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/lump-sum-daily-payments-or-a-combination-what-to-consider-when-paying-for-nursing-home-accommodation-207405">original article</a>.

Retirement Life

"What am I going to do?”: Centrelink mother points out crucial flaw in new budget policy for parents

An unemployed mother who relies on Centrelink benefits has broken down while noting a fatal flaw in Treasurer Jim Chalmers’ Federal Budget promises to parents. Jessica Blowers told ABC’s Q&A program that she will be forced off the Single Parent Payment when her daughter turns eight in August, leaving her unable to afford the rent increases. Currently, single parents can claim the Parenting Payment of $949.30 a fortnight until their youngest child turns eight. By September 2023, the age limit for the pay rise to when the youngest child is 14, as part of Chalmers’ budget. Ms Blowers is one of many copping the brunt of it as her daughter’s 8th birthday is four weeks before the new rules begin. She will also see a rent increase during that period from $900 a fortnight to $960. “What am I going to do? What is my choice, other than I am doing my best to get a job so that I can keep a house over my daughter's head,” she stressed to the treasurer. “When I'm applying for the jobs, I am faced with being told that more than 100 other candidates have applied for the same jobs - I'm not sure how I am supposed to compete against 100 other people for one job.” Ms Blowers added she “would like to know what measures the government has in place to bridge the gap that I and other parents in similar situations will find ourselves in”. “I don't have anywhere to go because I am paying my entire pension in rent. Everywhere else in Sydney is comparable to that.” Although sympathetic to her situation, Chalmers said those suffering like Ms Blowers were “the reason why we are lifting the age from eight to 14”. “This is something we were really keen to do in the Budget because we recognise the pressure that you are under as a single mum,” he explained. However, Chalmers was adamant that the new system could not be introduced any earlier than September 20, 2023. “We've tried to do is bring that change in as soon as possible. We think September is the soonest that we can do it,” he said. “I understand that that means a few weeks for you going from the current payment onto JobSeeker and (then) back onto the single parenting payment. “I would love to avoid that if we could, but what we're trying to do is provide this extra assistance ... that you need and deserve. If we could avoid those couple of weeks, we would, but September is the best we can do.” In total, some 57,000 single parents, 90 per cent of whom are women, will benefit from the new scheme. Previously they would have been moved onto the lower JobSeeker rate when their youngest child turned eight. “By age 14, children have typically settled into high school and need less parental supervision, and single parents are in a much stronger position to take on paid work," Prime Minister Anthony Albanese said when the policy was announced. Historically, the single parent payment was eligible for singles with children aged up to 16. But former prime minister John Howard, later supported by Julia Gillard, cut the age to eight in an attempt to encourage parents back into the workforce. Two advisory bodies have called for the government to extend the payment and the eligibility criteria. It is understood mutual obligation requirements will remain in order to continue encouraging parents to go back to work. Speaking to Nova radio in Perth, Mr Albanese explained he knew “firsthand what it's like to grow up with a single mum doing it tough”. “We want to look after single parents because we know that the role that they play in raising their children is such a priority for them and they’re deserving of more support,” he said. Image credit: ABC Q&A

Money & Banking

Over-55s the only group to receive Centrelink payment boost

Older recipients of JobSeeker will receive a higher welfare payment as the federal budget is set to include an increase in payments for 227,000 Aussies. According to 7News, the budget will include an increase in the base rate of the JobSeeker for people aged 55 and above. The change honours Treasurer Jim Chalmers’ promise that an increase “will be focused on the most vulnerable”. Finance Minister Katy Gallagher previously committed to a “significant improvement” in terms of the budget. When asked if the rate of JobSeeker would be lifted, Gallagher revealed the budget would contain “ongoing” investments to help people with cost-of-living pressures, in addition to one-off measures. “This budget will have a significant cost-of-living package and that cost-of-living package will be targeted to the most vulnerable Australians,” she said. About 227,000 Jobseeker recipients are 55 and over, which is the highest number of any age group and the group most likely to be unemployed long-term, meaning they are without a job for five years or more. The majority of people in this group are women. Senior sources reportedly told 7News that the increase will be modest, not the $100-a-week advocates are hoping for but what the budget can afford. The change is unlikely to please Raise the Rate campaigners, who have called for the government to bring payments above the poverty line. 7News reported that the government will sell the moderate increase as a “responsible first step”, an increase that will help the most vulnerable of JobSeeker recipients and honours its election commitment to do what it can to help within the restraints of the budget. The pressure continues to pile up for the government to substantially increase income support payments above $49.50 a day for singles on JobSeeker and $40.20 a day for Youth Allowance. An open letter to the Prime Minister, which has been signed by more than 300 politicians, community advocates and prolific Aussies, called for an increase to be included in the budget to support those most in need. “Right now, the rate of JobSeeker is so low that people are being forced to choose between paying their rent or buying enough food and medicine,” the letter, coordinated by the Australian Council of Social Service, read. In 2022, the council’s research found six in 10 people on income support were eating less or reporting difficulty getting medicine or care due to their inadequate income. This increased to seven in 10 in March 2023. The budget plans to extend single-parenting payments and increase rental assistance - particularly for women. Around $120 billion in Morrison Government road and rail projects will be reviewed and money reprioritised, with hundreds of smaller projects likely to be stopped. Image credit: Getty

Money & Banking

Major boost to pension and allowance just days away

The federal government has announced big changes to government allowance, with nearly 5 million Aussies set to benefit from an increase to their pension payments. Read more: Almost 5 million Aussies will receive a major increase to their pension payments as they are indexed to inflation. Recipients of the Age Pension, Disability Support Pension and Carer Payment can expect an increase of $37.50 a fortnight for singles and $56.40 a fortnight for couples combined. The maximum fortnightly rate of the pension is set to increase to $1,064 for singles and $1,604 for couples, including the pension and energy supplements. Single, childless JobSeeker and ABSTUDY recipients over 22 will receive an extra $24.70 per fortnight. Each half of a couple receiving payments will receive a $22.50 increase per fortnight. Single parents receiving the parenting payment will benefit from an extra $33.90 a fortnight. Single parents on the parenting payment will also receive an additional $33.90 per fortnight, with the rate increasing to $967.90, including the Pension Supplement, Energy Supplement, and Pharmaceutical Allowance. Single, childless recipients of the maximum rate Common Rent Assistance will see an increase of $5.60, receiving $157.20 per fortnight. People who receive the maximum rate and have one or two children will see an increase of $6.58 to $184.94 per fortnight, while those with three or more children will receive an increase of $7.42 to $208.74 per fortnight. According to the federal government, the indexation of social security payments will bring cost-of-living relief for 4.7 million people. Social Services Minister Amanda Rishworth said the government was supporting Australians most in need. "Australia's social security system exists to support our most vulnerable citizens, and we know they are feeling the pinch," she said. "Indexation is a pillar of our social security system and we want more money in the pockets of everyday Australians so they can better afford essentials. "The increase is an important part of the system and helps those doing it toughest.” The indexation of payments begins on March 20. Image credit: Getty

Money & Banking

"Sheer terror": Pensioner slapped with five-figure government fine

Pensioner Rosemary Gay opened up about the “sheer terror” she faced upon receiving a letter from the government demanding she pay back the $65,000 Robodebt bill they claimed she had been overpaid. Rosemary’s nightmare began on September 19, 2016, when the letter arrived, an event that Rosemary confesses “turned my life upside down and created an enormous emotional and mental strain on me." The letter detailed that she was required to pay the total of $64,999.17 in overpaid welfare benefits. Centrelink claimed this was because her declared amounts did not reflect what she actually earned during the period of July 9, 2010, to 6 October, 2016. “It turned my life upside down,” Rosemary told the Robodebt Royal Commission on Monday, “I’ve never earned that much money, how could I owe that much money? And the fact I was to come up with it within a matter of three or four weeks, it was sheer terror.” The emotional 76-year-old admitted that she feared she would have to sell her home to cover the debt, and detailed the bleak path she saw before her, “all I could see was that I may be faced with selling my home and losing everything that I had worked for in my 70 years, and I just saw it all going away instantly.” After contacting Centrelink, Rosemary confirmed that what she had reported was the same as what was on the paperwork. She admitted to assuming that would “be the end of it.” Officials at Centrelink eventually told Rosemary that it came down to a “glitch”, and after a review, the total of her debt was reduced to $6,600. Of her Robodebt experience, Rosemary said, “it was a very dark period of time for me and one that is very difficult to re-live. My mental health and physical health, at that stage, were at a very low ebb.” A second review brought a new letter to Rosemary in December 2016, this time stating that her debt had been reduced to $120. Finally in 2020, Rosemary was informed by Centrelink that she would be refunded the $120, with the Coalition government winding up the unlawful scheme - ruled as such by the Federal Court in 2019. It is suspected that more than 381,000 people were affected, and that over $750m was wrongfully recovered from the victims. “I was shocked and angry by this time to think they could initially cause such a traumatic experience to anybody accessing support from a pension,” Rosemary told the Royal Commission, “it will continue to remain with me forever. It’s just something I will never get over and it has had a huge impact on my physical and mental wellbeing … “That they could turn someone’s life upside down and still get it so wrong over and over again.” Image: Getty Images

Money & Banking

"You have to beg for help": how our welfare system pressures people to perform vulnerability

People who rely on welfare payments to survive are often required to repeatedly tell stories of their personal hardships. In a <a href="https://www.theguardian.com/australia-news/2022/jun/07/job-seekers-could-have-welfare-stopped-under-onerous-new-points-based-system-advocates-warn">conditional welfare system</a>, many must regularly attend compulsory appointments, job search training courses, and self-development and treatment programs simply to receive their payments. People in extreme hardship often tell their stories even more frequently as they seek extra relief from non-government charities and community providers. Those on income support payments below the relative poverty line feel the crunch of <a href="https://www.ncoss.org.au/wp-content/uploads/2022/07/NCOSS_CostOfLiving22_FINAL_DESIGNED.pdf">inflation and rising living costs</a> most severely. This means many will require extra support from welfare services to meet their basic needs. Integral to this system is the idea of “performing vulnerability”. “Performing vulnerability” – a term I borrow from UK-based researcher <a href="https://policy.bristoluniversitypress.co.uk/vulnerability-and-young-people">Kate Brown</a> to update Australian academic <a href="https://www.cambridge.org/core/books/lowest-rung/FA159318C2D046EDD3C9347C8B8E4F2E">Mark Peel’s</a> idea of “performing poverty” – is not just about repeatedly describing personal hardship. It points to the expectation to describe hardship in particular ways that are recognisable – and hence believable – to support providers. My book, <a href="https://policy.bristoluniversitypress.co.uk/making-a-life-on-mean-welfare">Making a Life on Mean Welfare: Voices from Multicultural Sydney </a>shows how the expectation to perform vulnerability to access support shapes experiences on both sides of the welfare frontline. It can compound the cycle of disadvantage associated with receiving welfare in the long term. It does so by <a href="https://journals.sagepub.com/doi/10.1177/0038026119876775">fostering mistrust</a> between welfare users and providers, as well as tainting how people in need of support see themselves and their situation. <h2>‘Tell me your story’</h2> For my doctoral research, I spent 18 months speaking to welfare users and workers in culturally and linguistically diverse southwest Sydney. I also observed different aspects of service delivery while volunteering at a community welfare organisation. I interviewed 25 welfare users and 11 community welfare practitioners. As a researcher of everyday experiences of welfare and poverty, I know all too well what it is like to ask people to tell their stories of hardship yet again. I also grew up in an impoverished family reliant on welfare to get by. I know firsthand what the impact of retelling stories of hardship can be, particularly when the audience is, as Peel <a href="https://www.cambridge.org/core/books/lowest-rung/FA159318C2D046EDD3C9347C8B8E4F2E">puts</a> it, “someone who has the power to give or deny them something they need”. One of the community welfare practitioners I interviewed summed it up by saying: "They’re coming again feeling ashamed. They’ve knocked on someone’s door, to tell yet again how shitty their situation is." Her response was to chat and put them at ease before saying, “Can you tell me your story?” She would follow up by saying, “You’ve given me some insight, let’s formalise your story a little bit.” Some welfare workers showed more scepticism, particularly when it came to giving out emergency relief. When someone refused to share more than the minimum information required to be eligible for extra assistance, one welfare worker commented: "That person doesn’t want to take responsibility." Another practitioner told me, “That woman dramatised her situation,” but quickly added, “That doesn’t mean she wasn’t genuine.” The willingness of people seeking assistance to disclose personal hardships and do so convincingly impacts on how deserving they may come across to those delivering support. The pressure to perform can overshadow encounters between welfare users and workers even when it doesn’t determine the outcome. <h2>‘It’s your dignity’</h2> Among the most marginal welfare recipients I spoke to, “performing vulnerability” was another toll of poverty. Those experiencing the worst hardship frequently told me about having to explain “the ins and outs” and feeling “embarrassed”, “intimidated” or “uncomfortable” when they had to present to welfare agencies. Two young people (whom I have given fictional names) powerfully conveyed the cost of telling all about their struggles: <blockquote> Kane: Often if you go to them sorts of people (welfare agencies) you’ve gotta put it all out there, that you’re homeless, that you got nothing, you got no friends, no family – and then they’re gonna go boom “alright” (you get the help you came for)… Nessa: Yeah, that’s what I had to do to get a house and it’s embarrassing (talking over each other) I think it’s embarrassing. Kane: You gotta go down to those levels you know – it’s wrong. Nessa: When you gotta expose everything and don’t want to, it’s, like, your dignity. Kane: Yeah, it’s everything. </blockquote> <h2>Performing is not pretending</h2> The most marginal welfare users get a great deal of practice performing their hardship. But knowing how to tell their story a certain way is not the same as pretending. Not only do people at the sharp end of the welfare system have to endure the hardships of poverty, but they must then recite it in a way that registers as genuine, pressing and beyond reprieve. As a woman living on the disability support pension put it:"You don’t have the flexibility that a rich person has to respond to crisis, so you have to beg for help. That takes time! And you know you’ll be judged like it’s your fault." A welfare system that demands disclosure of personal hardships – even when geared towards being <a href="https://onlinelibrary-wiley-com.ezproxy.uws.edu.au/doi/full/10.1111/1468-4446.12740">supportive</a> rather than suspicious – can undermine dignity and hold back those unwilling or unable to tell their story convincingly or in enough detail. Image credits: Getty Images This article originally appeared on <a href="https://theconversation.com/you-have-to-beg-for-help-how-our-welfare-system-pressures-people-to-perform-vulnerability-180975" target="_blank" rel="noopener">The Conversation</a>.

Retirement Income

Record boost to Centrelink payments coming for nearly one million Aussies

Hundreds of thousands of Australians receiving welfare are due to receive the biggest increase to their payments in two decades. The increase will see payments for young people, including parents, students and those on disability, increase from January 1, 2023. From next year, the base rate for singles on Youth Allowance will increase by at least $19.10 - with a maximum $32.40 extra a fortnight - taking the maximum rate up to $569.80. Single Australians with dependents can expect a boost of $41.40, bringing payments up to $729.60, while couples will receive an additional $35.20 a fortnight. For those under 21 without kids who receive Disability Support Pension, including Youth Disability Supplement, the payment increase is expected to range between $27.40 and $40.70 a fortnight. Recipients of Austudy, ABSTUDY, Mobility Allowance, Double Orphan Pension, Carer Allowance and Pharmaceutical Allowance will also be included in the increases, which are part of a routine indexation that happens every January to keep up with inflation. It comes after the Reserve Bank of Australia forecasted that inflation would peak at eight percent by the end of 2022. In comparison, payments for young people and students have been indexed at 6.1 percent. Social services minister Amanda Rishworth said the increase would help ease the pressure coming from the current cost-of-living crisis. “With the cost of living increasing, we need to ensure students and young people can cover basic costs while focusing on their studies and career aspirations,” she said. While young people are the subject of these payment increases, those who receive Jobseeker or the Aged Pension won’t be left out, with indexation increases announced for all welfare payments were announced by the federal government in September. These payments are also indexed at other times of the year, with the Aged Pension increasing in March and September. Image: Getty Images

Money & Banking

Disability pensioner calls himself the "unluckiest" lotto winner

When a disability pensioner struck gold playing the lotto, he thought his luck was starting to turn, until a harsh ruling from Centrelink put a swift end to his celebrations. Craig Hill had never won anything playing the lotto, until his numbers finally came up last month. While it wasn't "the big prize", Hill claimed the second division win in The Lott's "Set for Life" draw. "The main prize is $20,000 a month for 20 years. But this was second division, which is $5000 a month, for 12 months," Hill said. It was a tidy sum of $60,000 to help pay off the mortgage. "It's probably the dream of every Australian to win," Hill told A Current Affair. "I'm very disappointed. I mean, you only ever win the lottery once. It's not a big prize." After he was notified of his winnings, he thought he would do the right thing and tell Centrelink of the money he was soon coming in to. "Initially, they said 'it's a lottery win, so therefore it doesn't affect your pension'," he recalled. "I rang back later and (they) said, 'because you're a professional gambler now, you're getting paid monthly, it does affect your pension'." If The Lott had paid Hill his winnings as one lump sum, it wouldn't have affected his fortnightly pension payments. But because his winnings are being paid over 12 months, Centrelink considers it an income from professional gambling. As a result, his pension has now been slashed from around $820 a fortnight to just $328, with his wife's carer's payment has been affected too. "When I said I wanted it reviewed, they said are 'we going to apply the $5000 to your wife's carers allowance … because that's welfare as well'," Hill said. Because of the lotto win, the couple is losing around $2000 a month. The pensioner tried to ask The Lott to pay the money as a lump sum, but was told it didn't meet its criteria for an exceptional circumstance. Now he's hoping for changes to be made to the rules. "It has taken me 40 years to win a prize of the lottery … apart from $8 last week," Hill said. "At 61 I really haven't got another 40 years to wait to win another one." Craig's message to Centrelink is, "I'm not your enemy." "I'm just a bloke that's struggling to make a living," he said. Image credits: A Current Affair

Money & Banking

5 million Aussies set to receive biggest cash boost in 30 years

Millions of struggling Australians will cop a much-needed cash boost this week, as Centrelink payments are set to increase to match the rising cost of living. The increased amount is set to be the biggest in 30 years and will benefit pensioners, disability support pensioners, carers' payments and those on Jobseeker and Rent Assist. Having been announced earlier in September, the increase will see the Aged Pension rise to $1025.50 for singles and $1547.60 for couples, while Job Seeker will rise to $677.20. Single parents are set to receive an extra $35.20, bringing their total up to $927.40, while Jobseeker recipients aged over 22 and without children will get an extra $25.70 per fortnight, bringing their total to $677. Treasurer Jim Chalmers said: “This indexation will be particularly big this month, because inflation is particularly challenging.” Image: Getty

Money & Banking

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