Category: News

CPSA points out contradictions in Government’s new means test

“From 1 July 2014, aged care fees will change, but with just four weeks to go, the Department of Social Services and the My Aged Care helpline have failed to address a major anomaly in the aged care means test”, said Charmaine Crowe, Senior Advisor, Research & Advocacy.

“In the Government’s new double-dip means test, the money you need to pay for your accommodation charges is also counted in the calculation of your co-contribution towards your care fee. As a result, you’ll be asked to pay more for your accommodation and care than the Government’s own means test says you can afford.”

Let’s use the Government’s own example of Peter.[1] Peter enters a residential care facility on 10 July 2014. Peter has assets of $1,344,500 and an annual income of $65,000.

The Government works out his daily means-tested contribution (his capacity to pay) as $167.21 per day, of which $114.72 per day would go towards care costs. That leaves $52.49 for accommodation. Peter has high care needs so the full $114.72 goes towards his care costs.[2]

Except, Peter’s accommodation costs $100 per day. That brings Peter’s bill to $214.72 per day – $47.51 more than what he is means-tested as being able to pay.

“Despite CPSA’s best efforts over a period of months to get clarification, no one in the Department of Social Services or at the My Aged Care helpline could justify the new means test, except to say that people can negotiate a lower accommodation fee or apply for financial hardship.”

“However, in practice the cost of your care is worked out after you enter a nursing home, when you have signed on the dotted line and handed over the money to cover accommodation charges. Also, care costs typically increase over time due to higher needs. This means nursing home residents will risk eviction or downgrading of their accommodation over time.”

“This scenario won’t just apply to people with high wealth. It could potentially apply to any resident with assets over $199,179, which is a threshold easily crossed if you are single and sell your house on going into a nursing home.”

“CPSA calls on the Government to sort out this mess as a matter of urgency. Departmental and My Aged Care helpline staff at least need to be able to explain to people what they could expect to pay and how they will afford it.”

[1]Information Booklet on fees for home care packages and residential care:  http://www.dss.gov.au/our-responsibilities/ageing-and-aged-care/aged-care-reform/reforms-by-topic/information-booklet-on-fees-for-home-care-packages-and-residential-aged-care-for-people-entering-care p.19

[2] Peter won’t have to pay this care fee once he has paid $25,000 in care fees, which would happen after 217 days in care.

Queenslanders who benefit from concession payments will not suffer any reduction in payments as a result of cuts announced in the Federal Budget.

Premier Campbell Newman said the State Government had listened to Queenslanders’ concerns and will act.

“Pensioners and older Queenslanders have told us that they simply can’t wear the cost of filling the gap between Queensland’s increased contribution, and the Commonwealth Government’s concessions cuts and increased fees and taxes,” Mr Newman said.

“That’s why today I’m announcing that we’ve not only listened to Queenslanders, but we’ve acted, within the space of two days, to reinstate the full level of pensioner and senior concessions.

“Passing on part of the Commonwealth’s cuts to pensioner concessions is clearly not an acceptable outcome for Queenslanders.”

Mr Newman said the Commonwealth should be bearing the burden of these cuts, not Queenslanders.

“We will be continuing to send a clear message to the Commonwealth that Queenslanders won’t stand for these kinds of cuts,” he said.

Treasurer and Minister for Trade Tim Nicholls said the Newman Government was still considering the impact of Commonwealth decisions on our budget, but Queenslanders had put a strong case for the Government not to pass on the unexpected cuts delivered by the Commonwealth.

“It is the Commonwealth Government that’s caused this problem with pensioner cuts and increased charges.

“We’re very conscious of the ‘double whammy’ impact of the Federal Government’s changes to pensions and the removal of concessions funding,” Mr Nicholls said.

“So we will be looking at all opportunities to withhold and recoup funding from Commonwealth programs and initiatives that they ask States to contribute to from time to time, to make up for the shortfall they’ve created.”

The QCCL has welcomed the passing of legislation removing the need for unions to ballot members before embarking on campaigns.

This law was an entirely unjustified interference in the political activities of voluntary associations.

QCCL president Michael Cope says “We are surprised that the government has taken so long to realise that this law could not stand in the face of the decision of the High Court in the Unions NSW case.”

Members of Unions of employers and employees can control the expenditure by the Union of their dues by electing officials committed to their views as is the case in most other organisations in our society be it Rotary or your local football club. No cogent argument has been made to treat unions differently.

“Now that union membership is no longer compulsory members who object to the political activities of the Union can simply leave.”

The QCCL’s final objection to the law was that it imposed an entirely unjustifiable burden on one set of political actors, namely industrial organisations, which does not apply to other political actors, namely corporations.

Both industrial organisations and corporations are economic actors pursuing their economic interests in the economic market and the political market. The interests of shareholders and the members of industrial organisations are in this regard indistinguishable from one another. There is no reason why one set of individuals, that is members of industrial organisations, should have more rights than shareholders.

Mr Cope said “In short, the legislation, far from being a blow for freedom of speech and freedom of association, was in fact quite the opposite.”

Peer-to-peer (P2P) lending, the global phenomenon that enables people to bypass the banks and borrow online directly from each other, is taking off in Australia thanks to SocietyOne. Australia’s only P2P lending platform, SocietyOne today announced the expansion of its plans to help more Australians save on personal credit, starting with a new personal loan rate for prime borrowers that’s more than 5% lower than the major banks.

Reduced rates and lower fees are only part of SocietyOne’s mission, which empowers both borrowers and investors by cutting out the banks and offering everyone a fairer deal.

Two years ago, SocietyOne began attracting investors who wanted a share in the slice of the banks’ $27.4 billion profits while offering a better deal to borrowers. It is now expanding with personal loans of $5,000-$30,000 available to qualifying borrowers via its easy-to-use website, offering a rapid response and a better deal.

SocietyOne has introduced a special discount interest rate of 1.25% below its standard rates for fixed unsecured personal loans. The result is a market-leading headline comparison rate of 9.80%pa for borrowers with excellent credit. This rate applies to A-rated customers and is a full 5.48%pa lower than the average personal loan rate from the big four banks*. Unlike the banks, this special limited time offer comes with no application fee, monthly maintenance fee or early pre-payment fee, demonstrating the power of P2P lending to provide transparency and fairness to all parties.

“Borrowers used to have few choices in consumer finance. Now there is another, better option if you’re a creditworthy borrower. We can offer you a cheaper loan through risk-adjusted pricing and a 100% online application process,” said SocietyOne co-founder and CEO, Matt Symons.

“Our advanced technology platform allows us to shift the power to regular Australians and totally change the way you apply for and receive a loan. This means a simple online application and the best possible interest rate which is based on your circumstances, not one-size-fits-all,” he said.

P2P lending has grown into a multi-billion dollar industry around the world, fuelled by people who are tired of the power of the big institutions and are looking for a better deal. SocietyOne is Australia’s only active P2P lender, and like other P2P companies around the world, it lets qualified investors compete for parts of a loan.

As a P2P lender, SocietyOne connects investors directly with creditworthy borrowers in a way that is simple, secure and confidential. It takes the complexity out of applying for a traditional bank loan whilst its lower operating cost advantage means it can reward borrowers with good credit with better rates through risk-adjusted pricing.

Successful borrowers on SocietyOne have included people looking to fund their wedding, car loans, and young medical graduates looking to fund an overseas holiday.

To learn more, please visit http://www.societyone.com

About SocietyOne

SocietyOne is Australia’s leading Peer-to-Peer technology platform where high credit quality borrowers can connect directly with sophisticated investors to get a better deal. The SocietyOne ClearMatchTM platform reduces the cost of originating and managing a consumer loan portfolio. SocietyOne is able to share this operating cost advantage with borrowers and investors. SocietyOne’s unsecured personal loan has been recognised as one of the Top 10 most Innovative Banking Products of the year in Australia and its SmartLoan mobile app was awarded “Best of Show” at Finovate Asia in November of 2012. To learn more about SocietyOne, go to http://www.societyone.com.au

Baby boomers rate companionship higher than government assistance, says Red Cross.

A survey of more than a thousand Australians has shown that baby boomers are our first generation to rate companionship higher than government assistance.

According to a recent survey by Red Cross, baby boomers not only expect to live longer, but they plan to live in their own homes with a partner well into their eighties, and want regular visits and phone calls.

A third of all people over 55 (31%), rate a regular visitor higher than extra assistance from government, or access to a retirement community.

Young people rate companionship even higher than their parents.

Looking ahead to when they are older, 40% of 30-34 year olds think a regular visitor will be more important to them than extra government assistance, or moving into a retirement community.

The survey also shows friends and family can’t always be relied on to stay in touch.

Nearly half of the survey respondents (44%) admit they do not ring an elderly friend or relative more than once a month; and 22% said they never ring and older friend or relative at all.

Only 5% of people surveyed rang an elderly relative or friend on a daily basis.

According to Red Cross Chief Executive, Robert Tickner ‘There’s growing desire for older people to stay at home.

‘Red Cross provides a free, daily phone call to thousands of elderly people in Australia just to check they’re OK’ says Mr Tickner.

‘Our ability to maintain and grow this phone service will be vital to ensure that the increasing number of older people living alone will not go unnoticed in an emergency.

‘We also have a range of companionship programs using trained volunteers to regularly visit isolated, older people to ensure they stay connected with their local communities and services.

‘All of these programs rely on the generosity of people who donate to Red Cross.

‘We all trust Red Cross to be there during disasters but now, more than ever, we need to be working in local communities every day to help elderly people who are doing it tough on their own.

Red Cross is asking everyone to dig deep before the 30th June to support the everyday work of Red Cross.

To make a tax deductible donation by June 30 call 1800 811 700, visit our mobile enabled web site at redcross.org.au or text ‘Help’ to 0448 DONATE (366283).

Ever wondered, why is it hotter in summer and colder in winter? Does the Sun move further away this time of year? No, the Sun doesn’t move, it’s us that changes position. Now, this once seemed to make sense because the Earth is furthest from the Sun in the middle of the Aussie winter but in fact our temperature is not really affected by distance from the Sun.

While it’s true that the Earth-Sun distance varies during the year, the difference in distance is not enough to account for the temperature swing between the summer and winter seasons, and vice versa. Although Earth’s orbit around the sun isn’t quite circular, the difference between the farthest and nearest separation is only three percent.

As we all learned in school, the seasons are due to the tilt of the Earth’s axis, the imaginary line passing through the Earth’s north and south poles. So in winter, Australia is pointing slightly backwards from the Sun and folks in the Northern hemisphere are pointing forward. By the way, the earth isn’t a perfect sphere. It spins, so it’s a flattened at the poles a little bit. That difference of 43 kilometres.

It’s June, and if we can keep the clouds and rain away this will be an incredible week to enjoy some peaceful and relaxing time under the Moon and stars. The skies are clear and yes it’s always cold this time of the year but have you noticed, the stars seem to tinkle a whole lot more? They do, but stars don’t really twinkle! It’s an optical illusion.

If you were in space stars would be just bright, unblinking points of light. It’s our atmosphere which scatters the starlight before it reaches your eye, causing that ‘twinkling’ effect. Astronomers use this twinkling effect to calculate what the seeing is going to be like from one night to the next.

When you see a star low down on the horizon twinkling like crazy you can bet it’s not going to be a good night for the telescope. We’ve been having a lot of bad weather lately and the atmosphere is unsteady outside. If a star halfway up the sky twinkles a lot it’s time to watch that video you’ve been putting off.

By the way, all the stars you see in the night sky are all within our own Milky Way galaxy, you can’t see any outside it except with the world’s most powerful telescopes. The next time you stare up and try to count them remember this, there are more stars in the Universe than heartbeats for every human being who ever lived! True, that’s a big number and it’s a pretty big place.

While you’re stargazing don’t forget to have a seat. You’ll see more if you sit while viewing. For one, this allows you more time to relax and examine the field of view. Your body is not concentrating on balancing in the dark. Relaxing while viewing lets you mind concentrate more on the view. Take the strain off your body so your brain can fully enjoy the wonders of the heavens.

Hey, most people will be amazed that, under the right conditions, you can see the planet Venus in daytime. The planet appears as a tiny white dot, which often seems to ‘pop’ out at you once you find it. The contrast between planet and sky is much lower during the day, making the planet hard to see, but most smart phones have apps now that let you find planets in the sky anytime. Try it.