Contributory Parent or Non Contributory: Which is best?

[Lizzywills]

Hi all

My in-laws are planning to join us ASAP. We have been looking at both Contributory Aged and Non Contributory Aged routes. They are aged 70 and 71.

We thought we were pretty set on Contributory, but having looked at it again, we're not sure!

As far as we know (and please set me straight if any of this is wrong) on the Non Contributory they get:

- Bridging visa whilst waiting for grant (which we know will never happen, so they effectively spend their life on bridging visa)

- They get reciprocal healthcare via UK agreement with Oz whilst on bridging visa - including access to PBS (although prescriptions not as cheap as if they were residents and not 'visitors' on a Bridging visa)

- Cost is much much less than Contributory!

It's only the certainty that appeals for Contributory. They wouldn't even get Medicare and full PBS until 2 years after grant, so given waiting list for Contributory they'd be looking at 5-6 years of paying anyway.

What are everyone's thoughts? Anyone been through this?? Contributory would use up a massive amount of the money they do have.

Thanks guys, any advice appreciated as we're going round in circles.

 

[Alan Collett]

Don't just look at the cost of the visa.

If they want to buy a home they may well have to pay a higher level of Stamp Duty.

For example, in Victoria the additional Duty payable by those who are not Aus citizens or permanent residents is now 7%!   http://www.sro.vic.gov.au/node/1658

There will be an charge payable to the Foreign Investment Review Board of at least $5,500: http://firb.gov.au/resources/guidance/gn29/

Plus, the capital gains tax main residence exemption is being withdrawn for those who are not Aus citizens or permanent residents: http://www.treasury.gov.au/ConsultationsandReviews/Consultations/2017/Capital-Gains-tax-changes

Watch also the availability of entitlements to age care, and Centrelink support as they get older.

You may find the differential in visa application charges between the 864 and 804 subclasses is not so significant after all.

Best regards.

[Alan Collett]

Also, note that full Medicare is available immediately to permanent visa holders.

Best regards.

[Quoll]

And remember that the reciprocal nature of the Medicare cover doesn't mean that everything is covered - it depends on the way the item is classified and something you may think is essential may not be essential to Medicare and they will expect them to go home for treatment or pay for it themselves. Contributory would be much less risky for sure.

[NANNY NELLY]

Are there any pension benefits on the CPVisa ?

[Quoll]

2 hours ago, NANNY NELLY said:

Are there any pension benefits on the CPVisa ?

You mean Centrelink benefits? There's a 10 yr permanent residence requirement before being eligible to access the age benefit which is also means tested. It's proposed to go up to 15 years residence if the person hasn't worked for at least 5 years in Aus prior to claiming it so I wouldn't be expecting any kind of age benefit payments at all.