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on Saturday, July 1, 2023
As we grow older, it's natural to require additional care and support. Whether it's for ourselves or our loved ones, understanding the financial aspects of aged care is crucial to make informed decisions. The Australian government has put in place a comprehensive schedule of fees and charges for residential and home care services. In this article, we will explore the key points from the official document provided by the Australian Government Department of Health, aiming to shed light on the financial implications of aged care.
Aged care services in Australia are designed to cater to the diverse needs of senior citizens. These services can include residential care (in nursing homes or assisted living facilities) or home care (support provided at home). As part of accessing these services, recipients may be required to pay various fees and charges, depending on their financial situation.
The list below outlines how much an individual can earn per year before they must contribute to fees and charges for residential aged care or home care.
The official schedule outlines several types of fees applicable to aged care recipients. These include:
Basic Daily FeeThe Basic Daily Fee is a standard daily fee that everyone in aged care may be required to pay. This fee contributes towards daily living expenses like meals, laundry, and utilities. The government sets the Basic Daily Fee, and its rate is indexed and reviewed regularly.
Maximum Basic Daily Fee Rate
- $58.98
(Residents in designated remote areas may be asked to pay an additional $1.06 per day.)
The Means-Tested Care Fee is determined based on an individual's financial situation, including their income and assets. Not everyone will be required to pay this fee, and for those who do, the amount will vary. The government uses a formal assessment process to determine the exact Means-Tested Care Fee for each recipient.
For individuals moving into residential aged care, an accommodation payment may be applicable. The payment amount depends on the type of accommodation chosen (e.g., single room, shared room) and the facility's pricing. The cost of a room in a residential aged care home can be paid via a Refundable Accommodation Deposit (RAD), a Daily Accommodation Payment (DAP), or a combination of the two.
Some residential aged care facilities offer additional services beyond the standard care. These services might include extra recreational activities, premium dining options, or other amenities. If you choose to access these additional services, an extra fee will apply, and the cost will vary based on the facility.
Basic Daily Care Fee
Depending on your allocated level of Home Care Package, the maximum daily care fee you can be charged is:
Income tested fee
This fee is determined by Centrelink after you have completed an income and assets test. This fee can be up to $34.84 per day. There is a maximum any individual will pay for home care, which changes depending on their income:
Income tested care fee caps
Lifetime cap: $76,096.50
Where the consumer’s income does not exceed the income threshold
First cap (daily cap): $17.42
First annual cap: $6,341.32
Where the consumer’s income exceeds the income threshold
Second cap (daily cap): $34.84
Second annual cap: $12,682.70
To protect recipients from excessive fees, the government has implemented fee caps for both residential and home care services. These caps ensure that individuals do not pay more than a certain amount annually for their care.
The government provides financial hardship assistance to those who are genuinely unable to afford the aged care fees. The process involves an assessment of the person's financial situation and can result in reduced fees or financial support.
To access aged care services, individuals must first undergo an assessment conducted by the Aged Care Assessment Team (ACAT/ACAS). This assessment determines the person's eligibility for aged care services and helps identify the appropriate level of care required.
Given the complexities of aged care fees, planning ahead is crucial. Families and individuals should assess their financial situation, explore available funding options, and understand the potential fees involved. Seeking professional financial advice can also be beneficial in making informed decisions.
Navigating the aged care system and understanding the fees and charges involved can be overwhelming, but with proper knowledge and planning, it becomes more manageable.
Remember, reaching out to a specialised aged care placement consultant and seeking advice from aged care providers can help ensure you or your loved ones receive the appropriate care without undue financial burden.
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