Understanding Aged Care

Article posted:Jun 25, 2019

Category: Aged care financial planning

How Much Does Aged Care Cost?

Residential aged care costs money, and there can be a range of fees and costs which need to be considered and understood before moving into aged care.

In Australia, the Government often subsidises the cost of aged care, and there are maximum amounts which can be charged. The cost of aged care often depends on your current income, your assets and pension rates.

The rates vary from year to year, so we will not place precise dollar amounts in this article to spare you confusion and frustration as the rates for these services often gradually increase every year or two.

However, we can supply you with basic information, such as the fees that usually have to be paid, where to find precise financial information and the financial assistance available to you.

Residential Aged Care Fees

When you move into residential aged care these are the fees you will likely come across:

  • Basic Daily Fee (this fee contributes towards the cost of the accommodation and daily living)
  • Accommodation Payment (this is a contribution towards accommodation costs), either paid as a lump sum or as installments
  • Income Tested Care Fee
  • Extra Service Charge (the fee for resdients who live in Extra Service aged care residence where the standard of food and accommodation is significantly higher)
  • Additional Service Fee (the fee for any additional 'luxury' services such as hairdressing or a glass of wine with dinner. The resident must agree to this fee)

Click here for more information on the fees associated with residential aged care.

How can I find out the exact cost of these aged care fees?

The cost of fees in residential aged care can vary between residential aged care homes and in most cases, they can be negotiated. The Government sets the maximum amount of daily care fees which can be charged in aged care and also offers financial assistance. 

We recommend contacting your chosen aged care provider and sitting down with them in order to calculate the exact costs that will be involved for you and your family. 

Find out more: Making Sense of RAD and DAP

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Do you need help finding aged care?

My CarePath can provide you with a complete end to end consultancy service to assist you in navigating the complexities of residential aged care & home care packages. Our consultants are ready to help - call or email today for a friendly, no-obligation chat! 

Call 1300 755 702 or Email Us

 

 


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