Below is a snapshot of the funding rules for aged care accommodation (as at September 2012). For more information regarding fees visit the Department of Health and Ageing website.
When considering aged care services it is recommended advice is sought from an independent financial advisor.
Home care services
Two different fee structures are used for home care services:
• Fee for service: these are services that do not require a government assessment and are paid for by the client based on an hourly rate.
• Government subsidised: these services (often called ‘packages’) are subsidised by the government and a contribution (co-payment) is made by the client. Client contribution may also come from the Pension (up to a maximum of 17.5% of the full single pension).
Residential care
Fees for all aged care services are governed by the Commonwealth Government. The fees for residential care are unique to each individual and their situation. The information below aims to describe how the various rates and fees are determined.
Residential Low Care
Low Care needs, as assessed through an Aged Care Assessment Team member (ACAT) - usually organised by your doctor or social worker connected to a hospital - has three fee structures:
• Basic Daily Care fee – set at 84% of the full single pension (equivalent to $41.22) and is payable by all aged care residents.
• Daily Income Tested Fee (not applicable to full pensioners) – uses rates and thresholds set by the Commonwealth Government to assess income (e.g. from investments) to determine any fees payable.
• Accommodation Bond – uses an assessment of assets to determine an Accommodation Bond. The Bond can be paid in a lump sum or instalments (where interest is then payable). A resident will retain a minimum of $40,500.
Upon leaving aged care the Bond is refunded, less monthly fees and charges. These charges are capped by the Government at a maximum of $19, 380 (over five years). After five years no further deductions will be taken from the bond.
Residential High Care
Residential High Care(as assessed through an ACAT) has three fee structures:
• Basic Daily Care fee – set at 84% of the full single pension (equivalent to $41.22) and is payable by all aged care residents.
• Daily Income Tested Fee (not applicable to full pensioners) – uses rates and thresholds set by the Commonwealth Government to assess income (e.g. from investments) to determine any fees payable.
• Accommodation Charge – based on assets at the time of entry into aged care. The charge is based on a sliding scale.
Extra Services
Exrta Serivces are available in both Low Care and High Care requires a minimum Accommodation Bond of $500,000. In addition to the Basic Daily Care Fee and the Daily Income Tested Fee (if applicable), a daily Extra Service fee of $34.38 is charged.
