#1 - David 2008-08-17 18:26 - (Reply)

The cost that is paid to the resthomes is huge and is controlled by the health ministry. Having a mother in one and understanding simple economics i can tell you that the $ being made by operators is huge. There does not appear to be any system where families who are actually paying can have input on levels of care and costs. Second concern is that if one puts all their assests into a trust then they avoid paying resthome costs but still have control over their assests; however, if you don't then you fund the costs. There is infact a double whammy for the non trust investor - because you pay tax on your investments and then pay government determined rates for resthomes. (to generate $30k for resthomes fees you need $40k income = approx. $10k tax.) Whereas, if you put all your assets into a trust then you don't pay home costs and because you do not need to generate cashflow you can alter your investments to minimise taxes paid. Thus those paying tax not only pay for yourself but also fellow patients who have buried their assets into trusts. Is this fair?