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Fees and Charges for Residential Aged Care and Home Care: November 2023

on Tuesday, November 7, 2023

As we enter the later months of 2023, it's crucial to stay informed about the fees and charges associated with residential aged care and home care services in Australia. With an ageing population, understanding the financial aspects of aged care is essential for individuals and their families. In this article, we'll provide an overview of the fees and charges you can expect in November 2023 and offer insights into how they might impact you or your loved ones.

Understanding Residential Aged Care Fees

Basic Daily Fee

The Basic Daily Fee is a standard fee that all residents in aged care facilities must pay. It is calculated as 85% of the Age Pension for singles, which, as of November 2023, stands at $48.80 per day. For couples, this fee is split equally between the residents. It's essential to note that this fee can change twice a year, in March and September, to align with increases in the Age Pension.

Means-Tested Care Fee

The Means-Tested Care Fee is determined by your income and assets. The government conducts an assessment to calculate this fee, taking into account your financial situation. For some individuals, this fee may be waived or reduced. The maximum Means-Tested Care Fee is capped, and the exact amount will depend on your personal circumstances.

Accommodation Costs

Accommodation costs refer to the amount you need to pay for your room within an aged care facility. The costs can vary significantly depending on the facility and the room type. As of November 2023, the maximum accommodation payment is $550,000, while the maximum accommodation contribution is $51.62 per day.

It's essential to understand that there are various options for how to pay these costs. You can choose to pay them as a lump sum (Refundable Accommodation Deposit or RAD), as periodic payments (Daily Accommodation Payment or DAP), or a combination of both.

Understanding Home Care Fees

For those who prefer to receive care in the comfort of their own homes, it's important to be aware of the fees associated with home care services.

Basic Daily Fee

Similar to residential aged care, a Basic Daily Fee is applicable to home care services as well. As of November 2023, this fee is $10.90 per day, or 17.5% of the single Age Pension, whichever is lower.

Income-Tested Care Fee

The Income-Tested Care Fee is calculated based on your income and assets. The government conducts an assessment to determine this fee. Some individuals may be exempt, and there is an annual cap on this fee.

Additional Service Fees

In some cases, you may opt for additional services on top of your standard home care package. These services could include things like extra personal care or therapy. These services come with an extra cost that varies depending on your provider and your chosen services.

Understanding Your Financial Responsibilities

It's important to be proactive in understanding your financial responsibilities when it comes to aged care, whether in a residential facility or in your own home. Here are some tips to help you navigate the fees and charges:

  1. Seek Financial Advice: Consider consulting with a financial advisor or an aged care specialist to assess your financial situation and explore the best payment options.
  2. Compare Providers: Different aged care facilities and home care providers may offer varying fees and services. Do your research to find the best fit for your needs and budget.
  3. Stay Informed: Keep yourself updated with changes in aged care fees and government policies. These can impact your financial responsibilities and options.
  4. Plan Ahead: Aged care decisions are often made during challenging times. Planning ahead and discussing your preferences with your family can help ease the process.
  5. Access Government Resources: The Australian government provides resources and tools to help individuals understand and calculate their aged care costs. Make use of these resources to get a clear picture of your financial obligations.

Staying informed about fees and charges for residential aged care and home care services in November 2023 is vital for anyone considering or already receiving aged care.

By understanding the different types of fees and seeking professional advice when necessary, you can make informed decisions that suit your financial situation and care needs.

Aged care can be a complex and emotionally charged topic, but with proper planning, you can ensure you or your loved ones receive the best care possible.

How can I find a residential aged care home near me?

Residential aged care homes are located throughout Australia. To begin your search, simply click on your state below and then enter in your desired suburb (or the name of the aged care provider if you already have a home in mind):

Where can I access Home Care Packages?

Home Care Packages are available Australia-wide. To begin your search for home care providers in your area, simply click on your state below: