You are a financial adviser and are approached by a married couple, Tom and Rita Brown....

Transcribed Image Text:

You are a financial adviser and are approached by a married couple, Tom and Rita Brown. Both are 71 years old and Australian citizens by birth. While they live in Melbourne, their only son who is financially independent lives in Canberra. The following information is an extract of data you gathered as part of the fact-finding exercise during an initial client consultation with them: The couple has approached you to find out if they are eligible for age pension. list of assets for the current financial year Assets Home (principal residence) Home Contents and cars Investment property - net rental income of $17,000 Bank account -interest rate of 2% Share portfolio Amounts $700,000.00 $57,000.00 $255,000.00 $50,000.00 $341,000.00 Income (in $) $17,000.00 $1,000.00 $11,935.00 You are required to provide calculations for the means test (asset and the Income test) and use this to suggest old age pension eligibility. You are a financial adviser and are approached by a married couple, Tom and Rita Brown. Both are 71 years old and Australian citizens by birth. While they live in Melbourne, their only son who is financially independent lives in Canberra. The following information is an extract of data you gathered as part of the fact-finding exercise during an initial client consultation with them: The couple has approached you to find out if they are eligible for age pension. list of assets for the current financial year Assets Home (principal residence) Home Contents and cars Investment property - net rental income of $17,000 Bank account -interest rate of 2% Share portfolio Amounts $700,000.00 $57,000.00 $255,000.00 $50,000.00 $341,000.00 Income (in $) $17,000.00 $1,000.00 $11,935.00 You are required to provide calculations for the means test (asset and the Income test) and use this to suggest old age pension eligibility.

Answer rating: 100% (QA)

SOLUTION First lets look at the asset test As of May 2023 the Australian Government has set the asset test limits for couples at 926500 for homeowners ... View the full answer