Progressive Financial Solutions

20/03/2026

Today at the Ageing Well Expo Melbourne at the Melbourne Convention and Exhibition Centre (MCEC)!

Great to be connecting with so many new faces and sharing how we support clients through retirement and aged care.

We will be back tomorrow, so come down and say Hi!

13/08/2025

The Care Expo brings together a huge range of community services, support programs, health care, aged care, disability, mental health, and wellbeing solutions — all under one roof! Whether you’re seeking advice, exploring services, or looking for the latest innovations in care and support, this is the perfect place to connect and discover what’s available.

💬 Come visit us at our stand, have a chat with our friendly team, and find out how we can support you or someone you care about.

📍 Where: Melbourne Showgrounds, 01 Exhibition Pavilion Ascot Vale VIC 3032
📅 When: Friday 15th & Saturday 16th August 9am – 4pm
💲 Entry: Free

We can’t wait to see you there! 💙

22/05/2025

The $3m superannuation tax, Division 296, is almost certain to be introduced following the recent lobisded Federal Election.

Here's what you should know:
👉 Division 296 tax is an additional 15% tax on superannuation earnings attributable to superannuation balances above $3 million.
👉 The proposed start date is 1 July 2025.
👉 Earnings will include unrealised capital gains.
👉 Currently, the $3m threshold is not indexed.
👉 Applies to member balances, and not to total balances of SMSFs.

Div 296 tax is a major change to the tax treatment of superannuation funds. We for one, do not agree with the decision to include unrealised capital gains as well as not having set plans to index the $3m threshold.

Division 296, is a proposed additional 15% tax on superannuation earnings attributable to superannuation balances above $3 million. This amount applies in addition to the existing 15% tax on earnings on funds held within accumulation phase.

23/12/2024

🎄 Merry Christmas & Happy New Year from All of Us! 🎉

As the festive season is upon us, we want to take a moment to thank all our wonderful clients for your support throughout the year. 💖

We hope your holiday season is filled with joy, laughter, and precious moments with loved ones. Stay safe, and we look forward to seeing you in the new year!

Our office will be closed over the holiday break and will reopen on Monday, 13th January.

Wishing you all a magical Christmas and a bright, prosperous New Year! 🌟

25/11/2024

The Aged Care Bill 2024 was passed in Parliament today, Monday, 25 November, and now awaits Royal Assent.

This legislation introduces significant reforms to Home Care and Residential Aged Care, including updates to fees and charges. It reflects key recommendations from the Royal Commission into Aged Care Quality and Safety, aiming to enhance the quality and sustainability of the aged care system.

Most reforms will take effect from 1 July 2025, with grandfathering provisions for current Residential Aged Care residents and Home Care participants. However, some details remain unclear, as elements of the reforms are outlined in subordinate legislation known as the "Rules," which are only partially released for consultation.

Key Reforms:

Residential Aged Care – Accommodation Reforms

👉Retention on Refundable Accommodation Deposits (RADs): From 1 July 2025, providers can retain 2% annually (up to five years) of a resident’s RAD or RAC (Refundable Accommodation Contribution).
👉Indexation of Daily Accommodation Payments (DAPs): DAPs will be indexed biannually for residents entering care on or after 1 July 2025.
👉Increase in Maximum Accommodation Prices: The threshold for accommodation charges requiring Government approval will rise from $550,000 to $750,000 starting 1 January 2025 (enacted under separate legislation).

Residential Aged Care – Ongoing Fees

👉Hotelling Contribution: A new means-tested fee of up to $12.55 per day will apply to residents entering care on or after 1 July 2025.
👉Non-Clinical Care Contribution (NCCC): Replacing the existing means-tested care fee, the NCCC will be capped at $101.16 per day for new residents after 1 July 2025, with a lifetime cap of $130,000 or a maximum of four years.

Home Care Reforms

👉New Classification System: The current four levels of Home Care Packages will be replaced by eight ongoing classifications and two short-term ones (for restorative and end-of-life care).
👉Updated Fee Structure: Clients will contribute a set percentage of service costs based on the service type (clinical, independence, or everyday living) and their means (linked to age pension status).

18/11/2024

An Extra Service Fee is a charge in residential aged care facilities for providing additional amenities, services, or a higher standard of accommodation beyond what is typically included under the government-subsidized aged care system. It is separate from the basic daily fee, which covers standard services like meals, cleaning, and basic personal care.

When transitioning to aged care, you might worry about losing the comforts you’ve enjoyed at home. Extra services can help bridge that gap by offering luxury amenities and experiences to make your stay more comfortable and personalized.

The specific amenities provided as part of extra services may vary by facility, but they can include:
• Enhanced accommodation with premium furnishings and décor.
• Massage or aromatherapy sessions.
• Greater menu variety, including beverages like wine, beer, or spirits.
• Entertainment options, such as TV with more channels or daily newspapers.
• Weekly hairdressing services.
• Special amenities like a bar fridge stocked with refreshments for visitors.

Facilities may provide these services to the entire facility or restrict them to specific wings or units.

Understanding extra service fees is crucial to avoid surprises and ensure the chosen facility aligns with your personal preferences and budget. By carefully reviewing your Extra Services Agreement and weighing the benefits against costs, you can enjoy added comforts without unnecessary financial strain.

15/11/2024

Dollar-Cost Averaging (DCA) is an investment approach where an investor invests a fixed amount of money at regular intervals, regardless of market conditions. This strategy aims to reduce the impact of market volatility by purchasing more units when prices are low and fewer when prices are high, lowering the average cost per unit over time.

Why Use DCA:
👉Mitigates Market Timing Risk: It avoids the risk of investing right before a market downturn.
👉Reduces Emotional Investing: DCA removes emotions, making the process automatic.
👉Encourages Consistent Investing: DCA promotes regular, disciplined contributions, even for small investors.
👉Takes Advantage of Volatility: It buys more when prices are down, potentially lowering average costs.

Dollar-cost averaging is a useful strategy for managing risk and fostering consistent, long-term investment habits. While not without drawbacks, it offers a simple, emotion-free approach for growing wealth over time. It is most effective for long-term investors, volatile markets, and those making regular contributions to their portfolio.

12/11/2024

Did you know that Aged Care Providers are incorporating pet therapy into their aged care activities for its benefits to residents, particularly those with dementia?

Pet therapy, or animal-assisted therapy (AAT), provides companionship and improves well-being through interactions with trained animals. Common in aged care homes, hospitals, and schools, pet therapy involves activities like petting, playing, or spending time with animals, typically guided by a handler. Research shows pet therapy can reduce stress, lower blood pressure, and ease loneliness, offering physical and emotional benefits for elderly residents.

🐾Types of Pets in Therapy🐾

Dogs: Friendly, calm, and adaptable, dogs are the most common therapy animals.

Cats: Therapy cats are known for their tolerance and calmness, making them ideal for people with limited mobility.

Horses: Calm-tempered horses, often used in therapeutic riding, can provide comfort and emotional support.

Robotic Pets: Used especially for dementia patients, robotic pets mimic real animal behavior, providing companionship where live animal interactions aren’t possible.

🐾Benefits of Pet Therapy in Aged Care🐾

Reduces Loneliness and Depression: Animals provide companionship, which boosts mood and reduces isolation.

Improves Emotional Well-being: Interactions with animals decrease anxiety and promote calm.

Enhances Physical Health: Activities with pets can lower blood pressure and heart rate, and encourage physical activity.

Sparks Joy and Purpose: Animals give residents a sense of responsibility and joy, especially through shared or resident animals, fostering happy memories and, in dementia patients, even stimulating cognitive function.

“Animals are such agreeable friends – they ask no questions, they pass no criticisms.” – George Elliot

06/11/2024

We’re excited to announce that Joe Formica has been named a finalist for the esteemed 2024 ACS Aged Care Adviser of the Year Award! This award uniquely celebrates financial advisers who excel at guiding clients through the complexities of aged care planning.

Held annually, the awards honor professionals whose dedication, expertise, and compassion empower clients to make informed choices and feel confident about their future.

Joe believes that aged care advice is both deeply involved and highly rewarding. He notes that advisers need passion, empathy, and patience, as supporting clients through this often emotional journey requires a special touch.

30/10/2024

Thinking about what happens to your superannuation after death is important, even if it's a difficult topic. When you pass away, your super balance and any insurance benefits (known as a death benefit) are typically paid to your dependents or your legal representative. Dependents can include a spouse or partner (including de facto or same-sex partners), children (including stepchildren or adopted children), or anyone who is financially dependent on you, such as a family member you support.

If there are no dependents, your super is paid to your estate and distributed according to your will, or by legal rules if there is no will. Interdependent relationships, where you share a close personal connection, live together, and provide mutual support, may also qualify for death benefits.

Since superannuation is intended to support members and their dependents, death benefits are usually tax-free for dependents. However, non-dependents, like financially independent adult children, may need to pay tax on these benefits.

28/10/2024

Nearly 80% of women retire with inadequate superannuation savings, averaging $85,000 less than men. This disparity arises from career breaks for caregiving, part-time or lower-paid roles, and limited contributions beyond the compulsory Superannuation Guarantee (SG) rate. Recognizing these challenges, women can benefit from proactive steps to boost their super savings.

The government has proposed that, starting 1 July 2025, an additional 12% super contribution will be added to Commonwealth-paid parental leave for eligible parents. This measure is not yet law.

Taking an hour to review and organize your super could significantly increase your retirement funds. Here are three steps to get started:

1. Check Your Super Regularly: Monitor your balance and evaluate your insurance and investment options to ensure they align with your needs.

2. Consolidate Super Accounts: Combine multiple accounts to save on fees, which could substantially impact your retirement savings over time.

3. Make Additional Contributions: Small, extra contributions can add up over time, helping to compensate for any career breaks.