What are the aged care options?
- Help at home
Subsidy is available from the government for home care services. Your adviser will be able to provide you with further information about these services (they are not the subject of this article).
- Care through an aged care facility
Residential aged care provides care on a permanent basis or for a short stay known as respite. There are different levels of care available and range from a fairly independent lifestyle through to 24 hour nursing care.
What are the costs of entering an aged care facility?
You must first be assessed by an Aged Care Assessment Team (ACAT) to identify your eligibility to receive care and which services you will need.
The costs of entering and living in an aged care facility include:
- Accommodation Contribution (Refundable Accommodation Deposit – “RAD”)
- Daily Accommodation Payment (“DAP”)
- Basic Daily Fee
- Means Tested Care Fee
How much will I need to pay?
The facility will charge you an accommodation contribution, or if your income and assets are below the prevailing threshold, the government will pay your accommodation costs.
If you have been assessed as having the financial means to support your own aged care, the accommodation contribution may be paid by RAD or by DAP or a combination of the two. Interest charges may apply for any outstanding accommodation payment and residents must be left with at least a minimum amount of assets. As an example, if your accommodation payment is $300,000 you may pay this:
- in full as by RAD; or
- by DAP; or
- a combination, say $150,000 by RAD and the remainder by DAP.
Every aged care resident will pay the same basic daily fee. This is a fixed fee, indexed semi-annually for inflation.
The Means Tested Care fee applies only to residents whose assets exceed the asset threshold at the time and it is also paid at the maximum rate if the resident does not complete an annual Assets and Income Review with the Department of Human Services.
How can I get help to make my financial decision?
Contact an adviser at The Investment Collective to assist you in making your decision about aged care so that you have the best financial outcome. Information is also available on the internet at https://www.myagedcare.gov.au/
Please note the information provided in this article is general in nature only. It has been prepared without taking into account your individual objectives, financial situation or needs. Before acting on anything in this article you should speak with your financial adviser to discuss whether it is appropriate to you in regard to your objectives, financial situation and current aged care needs. An adviser at The Investment Collective to assist you in making your decision about aged care so that you have the best financial outcome. Some of the details in this article may fluctuate from state to state and it is best to speak to an adviser about your specific circumstances before considering any of this information.