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COOROY RAG

Home equity could help fund aged care By Chad Monroe Certified Financial Planner® of Provision Wealth Management*

BEGINNERS TO ADVANCED THEORY & PRACTICAL

10 Fantail Cresent Cooroy

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5447 7461

EUMUNDI SALEYARDS Cattle Sales Tuesday Fortnightly Vealer & Calf Sale Monday Fortnightly

www.mikewheeler.com.au

Mike Wheeler 0417 320 590 Clint Murtagh 0428 711 102 COOROORA

WOODWORKERS CLUB

8 Lower Mill Road, Cooroy

• Timber Slabs for sale • Handmade wooden artifacts for sale • Carving & Turning • Classes for Members • Memberships Now Available • Donations of Timber gratefully accepted • Sawdust & Shavings available Open Mon-Sat 9.00am-12 noon Contact John Kennedy 5442 7487 for Purchases & Donations of Timber

Page 10 - Cooroy Rag, July 9, 2014

A PERSON’S home is their castle and any equity in it is the owner’s to use as they wish. But the large amount of untapped wealth that is tied up in homes around the country has not gone unnoticed by the Government and others. Two high profile reports as referred to below have raised the possibility that one way to help fund the rising costs associated with an ageing population, is to bring the family home into the equation when it comes to aged care. New funding models Both the Productivity Commission in its An Ageing Australia: Preparing for the Future research paper[1] and The Grattan Institute in its Balancing budgets; tough choices we need report[2], have raised the possibility of using the equity in one’s home to help meet the costs. A government equity release scheme where individuals contribute half the annual real increase in their home values towards aged care was the Productivity Commission’s suggestion. The Grattan Institute suggested wealthy retirees draw down some of the value of their owner-occupied dwellings before accessing the age pension. People who failed the asset test due

to the value of their dwelling would be allowed to receive the aged pension, but they would accumulate a debt to the government, to be paid when the home was transferred or sold. Both schemes are not too dissimilar to existing reverse mortgage arrangements where a home owner can access the equity in their home for any number of reasons, repaying the amount when they leave or the home is sold. Under current arrangements, a person moving into an aged care facility requiring an accommodation bond does not have to sell their home to raise the necessary entry costs. The home is also exempt from the age pension assets test – two years from the date a person moves into care.[3] Indeed, a home will remain exempt beyond the two year period if: a partner or dependent child lives in the house; a carer who is eligible for an Australian Government income support payment has been living there for at least two years or a close relative who is eligible for an Australian Government income support payment has been living there for at least five years. The family home and the Age Pension There are times when a person does need to sell their home to fund the sometimes

large accommodation bond and this amount is also exempt from the age pension assets test. Any other proceeds from the sale of a home may impact how much age pension a person can receive. While it has been possible to pay a higher bond to ensure any age pension is still paid, significant changes to aged care funding which take effect from 1 July 2014, means this strategy may not be possible. Renting out the family home An accommodation bond can also be paid in regular instalments which may be funded through the principal residence being rented out. In this case the value of the home remains exempt from the age pension assets test, and the rental income is exempt from the age pension income test, while the periodic payments are being made. The rental income is not counted towards the calculation of income-tested daily care fees at an aged care facility. The family home often plays a large role in financial planning because at most times it is your largest asset. For the moment at least, it remains sacred. If you are considering strategies that involve you or your loved ones contemplating aged care accommodation, don’t hesitate to call us today on 07 5447 7740.

Noosa Showgirl entries now open Noosa Country Show WOULD you like to raise the profile of the Noosa Country Show and be involved in the Community? Would you like to meet new people and challenge yourself? Here is a fun and exciting opportunity for young people to get involved and achieve easily. The Noosa Country Show is looking to the youth of our communities to enter our Miss Showgirl and Rural Ambassador competitions. There are many prizes to be won and gifts for entrants. The Miss Noosa Showgirl title is awarded to a young lady aged 18 to 28 years, selected for her knowledge, her presentation and her passion for the show movement and the local community. It is not a beauty contest, nor is it a brains test. It is an award presented to a young person who will raise the profile of the Noosa Country Show. There are also categories for Noosa Miss Teen, Noosa Miss Junior, Little Miss Noosa and Little Mister Noosa. Miss Charity Queen will be awarded to the entrant who raises the most funds for the Show and Wildcare Australia, Pomona branch, who are seeking funds to build an enclosure for rehabilitation of injured sugar gliders, so that they can be released

back to the wild. The Rural Ambassador award seeks young people, male or female, aged 20 to 29, who symbolise the rural spirit - people with vitality who are forward thinking and with a passion for the land and local shows. Our Noosa winners of both Showgirl and Rural Ambassador will progress through to regional level and winners from there go to the State Awards at the Ekka and National Finals follow on from there. Interviews will be held at the King of the Mountain Festival at Pomona on Sunday 27th July. Final judging will take place at the Show Ball at Pomona Memorial Hall on Saturday 2nd August. Entry to the competition is $10 which entitles entrants to one year membership of the Noosa Show Society, free entry to both days of the show and free entry to the Ball. Tickets are $45 for non members and $35 for members. The Show Ball includes a two course meal catered by Black Ant Gourmet, a licensed bar plus a live professional five piece dance band. Go to the website www.noosashowsociety.org.au for entry forms, schedules and rules. For further details contact Stacey Breed on 0413 199 802 or email secretary@noosashowsociety.org.au

Art Exhibition Noosa Country Show Art Exhibition, 1113 September, 2014. Opening Night 6-8 pm. Artists everywhere, take up your tools, paints/pencils/pastels and start imagining Noosa in her fabulous cloak of many colours. The art competition challenge has been inspired by the main theme “Celebration of Noosa Shire” The options are one or all of the following in any medium. Concept 1. Noosa Dreaming Concept 2. Drawing Noosa Concept 3. Noosa Now. The 2D Selection Criteria is on the website. Deadline for all Entry Forms accompanied by Entry Fee is Monday 25th August Lock it in the diary today! The Squash Courts, Pomona Showgrounds will house the Art Exhibition and Photography, Come an experience free workshops that include Art, collaborative community painting with Sammy Ray Jones, Native fibre weaving with Renee Bahloo, leadership talks, Free Bush tucker food tasting, yarning circles, Aboriginal weapons making demo, bush carpentry, Permiculture and kids learning through play. The full schedule is now available on www.noosashowsociety.org.au Or Email Art Steward Sandra smfsarts@yahoo.com.au