FINANCIAL ADVISORY SERVICES

Aged care advice is becoming an increasingly important area for accountants offering professional advice. The combination of an ageing population and a complex set of rules for accommodation choices also further create opportunities for those willing to offer advice. The average age of a person moving into a hostel or nursing home is approximately 82. For this reason, the person needing care is less likely to be your client and more likely to be their children, also senior baby boomers. The following are examples of the key questions clients may ask when seeking aged care advice: • whether to retain or sell the family home • whether to rent their home • how to pay for the accommodation bond – periodic or lump sum • whether to hold current investments, and • what new investments they should also consider. The complex rules around aged care housing means this is the area in which most clients will seek assistance. In many cases, the need for residential care requires fast action and decisions at a time when family members are under considerable stress, meaning they need reliable advice from a trusted adviser. A range of advice can be provided outside of the Australian Financial Services (AFS) licensing regime. However, inappropriate advice can have adverse effects on entitlements, particularly to the Age Pension, resulting in potential liability. It is, therefore, imperative that before you provide advice in this area you have a thorough understanding, including understanding the consequences of certain actions. This guidance note focuses on: 1. the need for specialist knowledge when providing aged care advic