An “imminent regulatory change” has been the most popular query for financial advisers in the last quarter, according to BT.
The wealth giant has released the top five queries raised by advisers between July and September, which was led by questions regarding income thresholds for senior health cards which are set to increase by over 50 per cent.
For the first time in 20 years, the income threshold will be raised, pending legislation which is currently in parliament. If passed, the threshold for singles will increase from $57,761 to $90,000. For couples, it will be raised from $92,412 to $144,000.
“Becoming eligible for the Commonwealth Seniors Health Card gives you access to valuable concessions, such as cheaper medicine under the Pharmaceutical Benefits Scheme. Visits to the doctors can potentially be bulk-billed and people can receive a refund of medical costs when they reach the Medicare safety net,” BT technical consultant, Tim Howard, said.
Additionally, card holders may also receive economic support payments which were worth $1,000 across 2020 and 2021,” Mr Howard said.
Around 44,000 more Australians are expected to qualify for the Seniors Health Card if the bill passes.
The bill was expected to pass this week; however, the Queen’s passing has seen parliament suspended for a short period.
Another query raised by advisers regarded downsizer contributions to super — which will see more Australians make contributions up to $300,000 with the eligibility age expected to drop from 60 to 55 in the coming months.
“Advisers with clients who are about to turn 55 years of age, and are planning to sell their home, may wish to consider the timing of the legislation,” Mr Howard said.
The legislation is expected to pass and receive Royal Assent — and come into effect — either on 1 October 2022 or 1 January 2023.
Other queries related to the home equity access scheme — which allows Australians, who are of pension age, to enhance their income in retirement by accessing the equity in a property they own — as well as an increase to the general transfer balance cap to $1.8 million in July 2023 and work test requirements.
“The upcoming regulatory changes can present advice opportunities, as many clients may not be aware of how the rules apply to their circumstances,” Mr Howard said.
How much will the non pension deeming rates effect the number of persons able to access the seniors health card.