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Technical and Global update: Parameters for HELP Debt, Aged Care, and Cash returns (Voss v4)
20 June 2022
Release overview
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Technical Update
This June seasonal update includes the latest available published figures for the following: HELP Debt repayment income thresholds, and Aged care asset and income thresholds, and more.
Note: While Age pension parameters are published every quarter, this time the means tests and deeming rates have remained unchanged since our previous update. We expect these to be updated in July, when certain thresholds are indexed by CPI.
HELP Debt
The HELP Debt repayment income thresholds have increased 2.86% from the previous year. This is as according to the Study Assist website.
Rate (%) | Current income threshold 2021/22 ($) | New income threshold 2022/23 ($) |
0 | 0 | 0 |
1 | 47,014 | 48,361 |
2 | 54,283 | 55,837 |
2.5 | 57,539 | 59,187 |
3 | 60,992 | 62,739 |
3.5 | 64,652 | 66,503 |
4 | 68,530 | 70,493 |
4.5 | 72,642 | 74,723 |
5 | 77,002 | 79,207 |
5.5 | 81,621 | 83,959 |
6 | 86,519 | 88,997 |
6.5 | 91,710 | 94,337 |
7 | 97,213 | 99,997 |
7.5 | 103,046 | 105,997 |
8 | 109,228 | 112,356 |
8.5 | 115,782 | 119,098 |
9 | 122,729 | 126,244 |
9.5 | 130,093 | 133,819 |
10 | 137,898 | 141,848 |
Aged care
Parameters for Aged care means testing have increased close to 2%, based on the Department of Health's Schedule of Fees and Charges for Residential and Home Care: From 20 March 2022. Note that this only applies to care recipients who first enter care from 1 July 2014
General | Current | New |
Income free area (single person) | 28,472.60 | 28,974.4 |
Income free area (couple) | 22,094.80 | 22,471.8 |
Income free area (couple, illness separated) | 27,952.60 | 28,454.4 |
Lifetime mean tested care fee cap | 69,101.75 | 70,558.66 |
Home care | Current | New |
Income threshold (single person) | 54,990 | 56,035.2 |
Income threshold (couple) | 42,083.60 | 42,868.8 |
Income threshold (couple, illness separated) | 54,470 | 55,515.2 |
Income tested care fee first cap | 5,758.45 | 5,879.85 |
Income tested care fee second cap | 11,516.92 | 11,759.74 |
Residential care | Current | New |
Asset free threshold | 51,500 | 52,500 |
First asset threshold | 175,239.20 | 178,839.2 |
Second asset threshold | 422,717.60 | 431,517.6 |
Home exemption cap | 175,239.20 | 178,839.2 |
Annual mean tested care fee cap | 28,792.36 | 29,399.4 |
Maximum accommodation supplement $/day | 59.49 | 60.74 |
Maximum permissible interest rate % | 4.01 | 4.07 |
Age pension
Age pension means test figures, found in A guide to Australian Government payments 20 March 2022 to 30 June 2022, have remained unchanged since the previous quarter. We expect these to be updated in July, when certain thresholds are indexed by CPI.
Global Update
Cash returns
Following the recent RBA announcement of a cash rate increase of 0.5%, the cash rate is now 0.85% with more rises expected this year. Our default interest rate has been updated to the Lonsec long run assumption of 1.7% from 2023 onwards.
This affects the returns/performance of the following assets:
Cash
Shares/Managed fund: Cash (direct) and Cash (trust)
Rate | Current (%) | New (%) |
Accumulation phase total return | 2022: 0.085 2023: 0.425 2024: 0.85 2025 onwards: 1.445 | 2022: 0.085 2023 onwards: 1.445 |
Pension phase total return | 2022: 0.1 2023: 0.5 2024: 1.0 2025 onwards: 1.7 | 2022: 0.1 2023 onwards: 1.7 |
The Distribution rate (for the Cash profiles of Shares/Managed funds), or the Interest rate (for the Cash asset) is the same as the Pension phase total return.
Notes for existing users
Please refresh your results for active cases
If you have any existing cases in progress, please refresh your results by clicking the Start Solve button for any scenarios where you created results on or before the release date of Monday 20 June 2022. This will ensure that all your scenarios are consistent. Note that the numbers in your results may change when you re-solve, but it is better to be consistent across scenarios. If you are unsure when your results were created, see How to check when your results were created.
For the updated assumptions, any cases you started before the release date will continue with the previous assumptions. Any cases you create after the release date will have the new assumptions.