QUESTION THREE: Ted and Sandra are a retired couple. Ted is aged 70 and used to play for Essendon in the 1960's, but when he retired from football, he worked as a courier. Sandra is aged 67 and worked at Qantas until she was laid off recently because of the COVID19 pandemic. After Sandra was unemployed, they both decided to sell their house in Sunbury and move to Echuca, in Northern Victoria where they built a new home. Their assets are now: . Family home valued at $752,000 with no mortgage. Term deposits valued at $52,000 with ANZ Bank, Contents worth $35,600 Motor cars (two) valued at $46,000 Share portfolio valued at $168,230 Superannuation valued at $426,954 (Ted) Superannuation valued at $135,652 (Sandra) . . All assets other than the superannuation funds are jointly owned. Both superannuation funds were converted into account-based pension funds when they retired. Their current income is made up of: Interest and dividend income of $8,932 per annum Account based pension to Ted of $21,344 Account based pension to Sandra of $6,783 Total income for the year was $37,059 REQUIRED: 1. Calculate under the assets test and the income test how much, if any, of the Age Pension they would be entitled to and what amount the Government if any would pay them as an age pension. (5 marks) 2. As both Ted and Sandra have no debts, should Ted keep his life insurance cover under his super fund, reduce it, or cancel it altogether? (3 marks) 3. Does the Government provide additional funds to people like Ted and Sandra who need additional income to live on? (4 marks) 4. What are the other options available to Ted and Sandra to use the equity in their home to provide the funds to Larissa? (3 marks) (5 + 3+ 4+3 - 15 marks) QUESTION THREE: Ted and Sandra are a retired couple. Ted is aged 70 and used to play for Essendon in the 1960's, but when he retired from football, he worked as a courier. Sandra is aged 67 and worked at Qantas until she was laid off recently because of the COVID19 pandemic. After Sandra was unemployed, they both decided to sell their house in Sunbury and move to Echuca, in Northern Victoria where they built a new home. Their assets are now: . Family home valued at $752,000 with no mortgage. Term deposits valued at $52,000 with ANZ Bank, Contents worth $35,600 Motor cars (two) valued at $46,000 Share portfolio valued at $168,230 Superannuation valued at $426,954 (Ted) Superannuation valued at $135,652 (Sandra) . . All assets other than the superannuation funds are jointly owned. Both superannuation funds were converted into account-based pension funds when they retired. Their current income is made up of: Interest and dividend income of $8,932 per annum Account based pension to Ted of $21,344 Account based pension to Sandra of $6,783 Total income for the year was $37,059 REQUIRED: 1. Calculate under the assets test and the income test how much, if any, of the Age Pension they would be entitled to and what amount the Government if any would pay them as an age pension. (5 marks) 2. As both Ted and Sandra have no debts, should Ted keep his life insurance cover under his super fund, reduce it, or cancel it altogether? (3 marks) 3. Does the Government provide additional funds to people like Ted and Sandra who need additional income to live on? (4 marks) 4. What are the other options available to Ted and Sandra to use the equity in their home to provide the funds to Larissa? (3 marks) (5 + 3+ 4+3 - 15 marks)