Nick Bruining CFP B.Com, CPL(H), Dip FP, FFPA, FAICD, APMESA

Authorised Representative of N.C. Bruining & Associates Pty Ltd AFSL 245514www.ncba.com.au

WarningsDon’t YawnDon’t do anything until

You thoroughly understand all the implications or; You seek specialist personal advice So you can sue them if its wrong.

Our Family

Other FamiliesSimilarEndeavour to make provision for their children Recognise that there are special issues for the

disabled childTry to set things up so they are not dependent on

the “system” to provide everything.

Centrelink ConcessionsMedical EligibilityNon means Tested Payments

Carers Allowance $114 pfnCarer Disability Assistance Payment for kids <16

$1,000Carer Supplement of $600

Rest Are “Means Tested”

Means TestsMeans to self fund or partially self fundExcept Blind PensionIncome TestAsset Test – Whichever produces the lowest

pension is the one used.Awareness of how these work and;

SDT is something we can do to reduce their affect

All legitimate and legal

PensionSingle $755.50 pfn or $19,643

+ bits ‘n pieces (Concession Cards etc)

$19,643 at 5.5% would require $357,000

It is worth while structuring the child’s affairs to access these benefits.

Income TestSingles

$152 pfn $1,463 or $43,238

Couples$268 pfn

$2,546 or $66,196Each $ over reduces by 50c until it cuts out as above.

Income TestWhat’s Included

EarningsRentalForeign Pensions

What’s notInterestDividendsGiftsWinnings

Income TestDeeming System

A notional rate of interest applied to all “Financial Investments”

Includes Bank Accounts Shares “Managed Investments” Others (Gifts over 10K pa /30K 5 year limits)

Singles, 1st $45,400 3% - then 4.5%Couples 1st $76,600 3% - then 4.5%Worked back to Per fortnight.

DeemingSo, How much can you have ?

Singles - $102,958Before the Income test starts to bite

Assets TestHome Owners

Singles $192,500Couples $273,000

Non Home Owners + $139,500

Assets TestEach $1,000 over threshold reduces pension by

$1.50 per fortnight.Cuts off pension at $696,250 ($835,750 non

homeowner)Includes Financial AssetsPersonal Assets (Cars, Personal effects)Real Estate (excluding dwelling)

Enter the SDTSpecial Disability Trusts

The Trust Holdsthe assets

subject to rules (The Trust

Deed)

Trustee(s)

Beneficiary

Centrelink/Auditors

SDTsIntroduced in 2006Introduce a raft of concessionsPredominantly Centrelink based

Key Elements of SDTsSpecial Set of rules (Deed) available from Centrelink

in a pro-forma documentMaximum amount in trust $596,500 plus residencePays for reasonable care & accommodation plus:

Key Elements continuedHealth InsuranceDiscretionary of $10,250 per annumBut NOT to parents etc• Income taxed like normal income to individual

Key Elements continuedAll assets exempt from Asset testAll income exempt from Income testBenefits to others

No CGT on assets transferred in No Stamp Duty Payable DOES NOT COUNT UNDER GIFTING RULES Could see you or Grandparents/Siblings Qualify for Pension.

Where to from here ?Centrelink FISOs 132300

Free serviceNice People

Financial Planning Association1800 626 393

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