University : Western Sydney University UniLearnO is not sponsored or endorsed by this college or university.
Subject Code : 200899
Country : Australia
Assignment Task

Case Study Information 
Case #1: Retirement and Centrelink 

William (Bill) Unwin and his wife Christine have come to seek your advice about any Centrelink benefit  they may be entitled to now that Bill has decided to retire.  
Bill is 68 and has finally decided to retire after working as an electrician. Bill arrived in Australia from  England with his parents over 50 years ago. Bill has Australian citizenship and has only ever worked in  Australia. He has had his pay and superannuation contributions finalised and this is all included in the  financial information he has provided you below. 
Christine is 62, was born in Sydney and has lived here all of her life. Christine has not worked since  2015 and now Bill has retired she has absolutely no intention of returning to the workforce. 
Bill and Christine provide you with the following financial information: 
• Home at North Rocks worth about $1.35million which they have just finished renovating – the  mortgage was paid out 5 years ago so they have no debt on the property (joint names) • Credit card with $3,400 currently owing 
• Home contents insured with IAG for $140,000 total replacement value (joint names) • Bill’s 2018 Subaru insured for $35,000 
• Christine’s 2016 Hyundai insured for $17,000 
• $35,000 in the NAB savings account earning 0.25%pa interest (joint names) • $110,000 in a NAB 6month term deposit earning 1.15% pa interest (Christine’s name only) • Direct share portfolio: IAG 3,500 / TLS 5,000 / CBA 1,000 / WOW 1,200 (joint names) • Bill’s accumulation superannuation account $540,000 
• Christine’s accumulation superannuation account $260,000 
Bill intends to transfer his accumulation super benefit to an account based pension to provide them  with a regular income now he has retired. Christine has never really thought about her super fund but  says she will just do the same thing as Bill does with her accumulation super benefit, but is happy to  hear your thoughts on this. 
Bill does not really care about what level of fortnightly pension that he may get from Centrelink, he  just wants to make sure he ‘gets something each fortnight’ so he can get a pension card and the  benefits that that will provide him. He thinks they have enough money to live on from his super and  other savings and says he can always sell his home if they look like they will run out of money. 
They have no firm plans in terms of what level of income they require in retirement and have no firm  plans requiring any large lump sums of cash but would like to know they can access funds if they need  to at any point in time. 
Based on the information provided: 
1. Determine what (if any) Age pension Bill and Christine will be entitled to receive from  Centrelink based on the Assets Test and Income Test current thresholds given their current  assets and intentions with their super funds. 
2. Discuss recommendations you could make to optimise Bill and Christine’s pension eligibility and any associated consequences of your recommendations. 
3. Discuss where Bill and Christine may access lump sum funds from if required and any  associated consequences of accessing these funds. 
4. Based on the assumption that Bill and Christine will implement any recommendations you  provide them, determine what Age pension Bill and Christine will be entitled to receive from  Centrelink if they follow your advice.
Case #2: Retirement and Aged Care 
John and Gwenda Miller have been married for over 50 years. Both John and Gwenda are now in  their 70’s. John has recently had a stroke and the initial plan was for Gwenda to care for John at home  once he is well enough to leave hospital.  
John and Gwenda have two (2) adult children and they are both concerned that their mother Gwenda  is not going to be able to care for John at home and have been speaking with the social worker at the  hospital about other options for caring for their father. Based on their concerns, John has been  assessed by the ACAT team and they have suggested residential aged care and his doctors have  indicated this as a preference along with the option of residential respite care. 
Gwenda and her children want to consider their options carefully and obviously the financial  consequences of John moving into residential aged care for both respite and on a permanent basis. 
Gwenda provides you with the following financial information: 
• They live in their home at West Pennant Hills which was recently valued at $1.4million – they  have no debt on this property (joint names) 
• Home contents insured with IAG for $80,000 total replacement value (joint names) • John’s 2015 Toyota worth $30,000 
• $75,000 in the NAB pensioner deeming account (joint names) 
• $120,000 in a St George 3month term deposit (Gwenda’s name) 
• They each have a funeral bond worth $8,500 each 
• They receive the FULL Centrelink age pension where they each receive $711.80 per fortnight • John has a small defined benefit State Super pension which provides an income of $1,250 per  month 
They have looked at a residential care facility close by which has a room suitable for John. The  advertised refundable accommodation deposit (RAD) is $500,000. 
Based on the information provided: 
1. Discuss how each of John and Gwenda’s assets and income sources will be assessed for aged  care fee purposes 
2. Determine what aged care fees would be payable if John were to enter residential aged care  on a respite basis for 3 weeks before returning home. 
3. Determine what aged care fees would be payable if John were to enter residential aged care  on a permanent basis. 
4. Discuss what impact (if any) John’s admission to residential aged care would have on their  ongoing Centrelink pension entitlements.  
[Note: You only need to discuss this issue – no calculation of the actual benefit is required]

 

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