Financing accommodation in Aged Care has changed from 1 July 2014

Last week, PCAC held an information session in relation to financing your stay in residential aged care. If a person comes into an aged care facility after 1 July 2014, there are new guidelines now put in place by the Federal Government as to how that can be financed. The cost of your stay in a residential home is still based around three payments:

Basic daily fee
This covers living costs such as meals, power and laundry. For some people this is the only fee they are required to pay. The basic daily fee is set at 85% of the single person rate of the basic Age Pension. This works out at $46.50 a day (from 20 March to 19 September 2014). This figure is the same for singles and members of a couple.

Means-tested care fee
This is an additional contribution towards the cost of care that some people may be required to pay. The Department of Human Services will work out if you are required to pay this fee based on an assessment of your income and assets, and will advise you of the amount.

There are annual and lifetime caps that apply to the means-tested care fee. Once these caps are reached, you cannot be asked to pay any more means-tested care fees. Any income-tested fees you have paid in a Home Care Package prior to moving into an aged care home will also contribute to your annual and lifetime caps.

Accommodation payments
This is for your accommodation in the home. Some people will have their accommodation costs met in full or part by the Australian Government, while others will need to pay the accommodation price agreed with us at Prom Country House. The Department of Human Services will advise which applies to you based on assessment of your income and assets.

We will always advise that a family should receive financial advice about what type of accommodation payment will suit the resident best as we are obliged not to provide this type of service.

Further information sessions will be held in the upcoming months regarding finance. In the meantime, if you wish to know more about residential aged care in general, please refer to the My Aged Care website: www.myagedcare.gov.au or more specifically, a stay with us at PCAC, please call 5682 0800 and book a time to sit down and have a chat.