Article posted:Feb 24, 2011
Category: Residential Aged Care
In Australia there is a minimum cost of aged care set by the Government, which can be covered with the rate of the pension (plus rent assistance). If you are financially disadvantaged then there is financial assistance available. You can find out what you are entitled to by contacting the Aged Care Information Line on 1800 500 853 or by calling Centrelink on 13 23 00.
The Department of Health & Ageing Aged Care Information Sheets has a range of information sheets addressing all aspects of aged care.
Daily Care Fees
In subsidised aged care there are two key fees, daily care fees and accommodation payments.
Daily Care fees refer to the basic services which must be provided in all homes such as meals, laundry/cleaning and mobility assistance. In high level care homes daily care fees can include the cost of specialised equipment that the resident needs to function on a daily basis, help with medications, nursing procedures et cetera.
The daily care fees are calculated by:
- A basic daily care fee
- An income-tested fee
The basic daily care fee is paid by everyone, the fee paid by those who receive no other income other than the pension or are on a part pension pay a maximum of $39.50 a day.
If you have other income other than the pension, you will be assessed by Centrelink or Veteran’s Affairs if you are a veteran to determine how much extra you may be required to pay.
Regardless of your income situation, you cannot be asked to pay more in daily care fees than the actual cost of your care.
Accommodation Payments
Accommodation payments are different to daily care fees and are used by aged care homes to improve buildings and services. Not everyone pays this fee as it depends on the value of your current assets.
When calculating your assets the family home is not included if it is being occupied by a spouse, dependent child, close relative or carer who has lived there continuously for the past five years and is on an income support payment.
There are two types of accommodation payments, a bond and an accommodation charge.
Bonds
The amount of the bond is decided between you and the aged care provider, although there is no maximum amount which can be charged on bonds, you must be left with assets of at least $38,500 once the bonds have been paid.
If you decide to leave the home, the balance of the bond will be refunded.
Please note that the home is allowed to keep all interest earned on the bond and can deduct a ‘retention amount’ from the bond on a monthly basis for a maximum of five years.
Accommodation Charge
Accommodation charges are paid in high level care homes, and the most that can be charge is $28.72 a day on top of the daily care fees. This applies to those who have assets of or more than $98,237.60 when they enter the home. For those who earn less, the Government Department of Health & Ageing sends letters to advise amounts. Note that different rules apply to those who entered permanent residential aged care before 1 July 2004.
