Examples - Income reviews
Example 1 - Mistaken Financial Means Assessment
Financial means assessment (FMA) completed on 2 May 2010 and private contribution assessed based on 2009 financial accounts as these were the only financial accounts supplied and/or available at the time.
On 10 October 2010 the client requests an income review as the 2010 financial accounts are now available and show less income.
The FMA completed 2 May 2010 is mistaken as we did not have the most up to date accounts at the time. The client should have been asked whether the accountant is able to supply an estimate of income for the coming year. This would ensure our estimate is based on current information.
The review date is 2 May 2010, the date of the mistaken FMA.
Example 2 - Income review
Financial Means Assessment (FMA) is completed on 15 March 2010 and the client's private contribution is assessed from their term deposit interest.
On 1 December 2010 the client phones to advise that the term deposit has been reinvested at a lesser rate. The client requests an income review form and this is sent the same day.
On 11 December 2010 the income review form is received and shows that the term deposit changed on 20 November 2010.
The review date is 1 December 2010, the date the client advised us of the change.
An income review can be completed from the date the client advised us of the change, or the date the form is received whichever is to the client's advantage. In this case it is to the client's advantage to review from the date the client advised of the change.
The income review cannot be completed from 20 November 2010, the date the term deposit was reinvested at a lower rate, as we cannot go back any earlier that the date the client advises us, or the date we become aware their circumstances have changed.
The only exception to this is when a review is being completed due to:
- partner enters care
- partner dies
- change in relationship status
Example 3 - Income review
Financial means assessment (FMA) is completed on 14 January 2011 and private contribution is assessed from interest.
On 4 March 2011 the client rings to advise term deposit will mature in a couple of weeks and requests income review form which is sent that day.
On 4 April 2011 the form is received showing interest rate was reduced from 21 March 2011.
The review can be completed from the date the client advised us of the change, or the date the form is received whichever if to the client's advantage. In this case the client advised us before the change happened so the review would be completed from 21 March 2011.
Note if the interest rate had increased from the 21 March then the review would be completed from 4 April 2011 - the date the form was received.
Example 4 - Income review
Financial means assessment completed on 10 April 2010 and the client is financially eligible for Residential Care Subsidy based on a house and minimal cash.
On 10 May 2011 the client phones to advise that the house has been sold.
An income review should be initiated by MSD as it is reasonable to assume that their income is likely to have changed. An income review form should be sent to the client together with a letter requesting that they complete and return the form to enable an income review to be completed.
If the income review form is not received within a reasonable time, the client will need to be contacted and requested to provide the information required for the income review to be completed.
The review date is 10 May 2011, the date the client advised us of the change.
