SUM - Summerset Group

[winner69]

I presume you would rather live in a low wage economy?
Myself - I'd rather live in a fair wage economy and pay the price accordingly.

I would too........but many won't be happy to 'pay the price sccordingly'

And those who can't put their prices go out of business leaving people on the dole. Affects the SME more.

[couta1]

I would too........but many won't be happy to 'pay the price sccordingly'

And those who can't put their prices go out of business leaving people on the dole. Affects the SME more.

No free lunch here, talk of ACC Levy's increasing and those not eligible for the residential care subsidy will pick up the tab. Meanwhile the wealthy residents with money in a trust will continue to receive a residential care subsidy courtesy of the taxpayer.More bad attitude kiwis will line up for care jobs lured by the higher pay but their hearts will be far from the job and a genuine care of the residents. One manager at a large care facility stated at the facility meeting last week that she would not be employing further immigrants once these wage increases go ahead.(The ship had started leaking before today's announcement)A can of worms has just been opened.

[trader_jackson]

I would too........but many won't be happy to 'pay the price sccordingly'

And those who can't put their prices go out of business leaving people on the dole. Affects the SME more.

I'm surprised nobody has brought this up on the EVO thread... its not just the listed aged care sector potentially adversely affected...

[Baa_Baa]

... Meanwhile the wealthy residents with money in a trust will continue to receive a residential care subsidy courtesy of the taxpayer...

That was a depressing post, however can you clarify with your knowledge of the aged care sector re the snippet above? Our experience was quite the opposite. The MSD were vigilant in means testing our application for the residential care subsidy (for hospital / aged care at a Presbyterian facility).

Maybe you mean the select very few can afford the vehicles that hide from the MSD test? Those who can afford to form trusts that are so oblique that the cared for, and their spouse are truely hidden from the MSD test?

MSD followed the letter of the law, being that only the joint family home and the motor vehicle were exempt, and ALL other assets including trusts with either the cared_for or their spouse, in any form or association or beneficiary, were deducted.

The result being that residential care subsidy funding was withheld and subsequently funded solely by ourselves (at around $5,500 per month!) and would have remained so until the total of the 'savings' (other assets) diminished to below around $106k, at which point the residential care subsidy would kick in.

My point is that the law is very strict nowadays and has been for a few years, one can't easily hide assets behind a trust and expect the government to pay the residential care subsidiary (i.e. fund the care).

Privately funding aged healthcare is bloody expensive, especially at 'god's waiting room' end of the healthcare continuum. The government is not obliged to, is not easily deceived, and will not pay for any care, until the surviving relative (spouse) can't afford it!

In spite of all that, as soon as the DHB's spiked the annual care fees which they do every year, those costs were automatically passed on to those who funded the care, which wasn't the government.

The least resistance pathway to fully government funded aged healthcare seems to be on the same continuum of general benefit reliance, where those that have nothing get the best out of the system while the rest of us pay our way until we can't. It makes me sick thinking about it.

[Joshuatree]

Yes my understanding is that they can't hide their assets in a trust anymore and expect a free lunch but happy to be corrected there.
Int article by not for profit Enliven; that are happy with the wage increase.The Govt picks up all the increase?

Aged Care Provider Enliven Says Pay Equity a Game Changer Tuesday, 18 April 2017, 5:21 pm Press Release: Enliven

MEDIA STATEMENT
18 April 2017 | For immediate release
Aged Care Provider Enliven Says Pay Equity a Game Changer
Aged-care service provider, Enliven, is welcoming the recently announced pay increase for care and support workers.
Part of the not-for-profit organisation Presbyterian Support, Enliven provides a wide range of aged-care services across New Zealand.
Enliven’s national spokesperson, Gillian Bremner, says the organisation’s pay rates are based on the funding they receive from the Government, “so this is great news for our staff”.
“We value our employees and want to see them receive fair remuneration for the training they undertake, and the essential work they do to support the elderly. We also firmly believe gender should not affect what people get paid, and we support this step by the Government to address that gender pay gap.”
Mrs. Bremner says Enliven will be closely reviewing the detail around this landmark decision by the Government, and the suggested sustainability and implementation plans.
“We see this is as an important step forward for our sector, and the people who are delivering these essential services.”

[couta1]

Baa Baa, over the last 27 yrs I've seen more than a select very few with their money protected by a trust, some of the well known and not so well known names I've met receiving the residential care subsidy is and was disgraceful considering their financial situations, nuff said.

[trader_jackson]

Yes my understanding is that they can't hide their assets in a trust anymore and expect a free lunch but happy to be corrected there.
Int article by not for profit Enliven; that are happy with the wage increase.The Govt picks up all the increase?

Would explain why Arvida hardly moved yesterday, and Oceania is unlikely be be negatively effected like we first thought? (along with Ryman, SUM or MET)

[couta1]

Would explain why Arvida hardly moved yesterday, and Oceania is unlikely be be negatively effected like we first thought? (along with Ryman, SUM or MET)

Do you think all the hard working nurses in aged care are going to be happy receiving $26 an hour while caregivers receive $23, having spent 3 years in full-time study and with a large loan to pay off? Remember this Govt funding money won't cover any increases to nurses which will have to move to over $30 an hour to make things fair. Predominantly care based companies are yet to realise the full impact of yesterday's news. PS-I see English said there will be no flow on effect for nurses, I see more nurses heading to work for the DHB's for up to $10 per hr more than working in aged care, for a lot less work.

[Beagle]

Some people of very modest means who have worked hard and paid taxes all their lives and never received a benefit from the Government of any kind are the sort of people I sometimes help understand the benefit of having their home and modest other assets in a family trust which I recommend be set up not later than their 50's so that at some stage if they do get into a care situation in their 70's 80's or 90's their modest assets they have worked so hard for won't be unduly affected and their assets can be passed to the next generation as they quite rightly should be. On the other hand I have clients who are multi millionaires earning hundreds of thousands of dollars in investment income currently receiving the superannuation when they have no need of it. Their assets are generally held in Trust's too.

On another topic - 96% of SUM's underlying profit came from development margin or realized profit on resale of units. If we're talking total profit including revaluations it becomes crystal clear that this company makes its money from property, not provision of care services which are basically break even.

[Baa_Baa]

Baa Baa, over the last 27 yrs I've seen more than a select very few with their money protected by a trust, some of the well known and not so well known names I've met receiving the residential care subsidy is and was disgraceful considering their financial situations, nuff said.

Thanks, good to have the inside view, appalling as it is.

Attachment 8802

https://www.workandincome.govt.nz/pr...sidy.html#null