Aged Care Financial Advice

The cost of aged care varies depending on the facility you choose and your income and assets. There is a basic daily fee, which everyone must pay. The maximum basic daily fee is currently $52.25, or $19,071.25 per year – this figure is 85% of the single basic Age Pension. In addition to this fee, there is an accommodation fee and a means-tested care fee. How much you pay for accommodation and means-tested care fee will be determined solely by your means assessment. The maximum daily rate for means-tested care fee is $256.44, but not everyone will have to pay this fee.

If you are eligible for an aged care home, you may have to pay one, two, or all three of these fees.

Additional fees may incur for extra and additional services provided by the facility.

The Government will help with aged care accommodation costs

If you don’t have the means to cover the full costs of aged care, you will receive financial aid to cover some or all of the costs – this is determined in the means assessment. A guide to the available funding is as follows:

• Assets below $50,000 and income below $27,840: The Government will cover all accommodation costs
• Assets above $ 171,535.20 and income above $70,320: You will cover all accommodation costs
• If you have to pay part of the accommodation costs, the Government will cover the rest of the costs

The Australian aged care system is for those aged 65 or over, who cannot live in your home without assisted support. The system is funded by the Australian Government, which spent $19.9 billion on aged care services in 2018-19.

There are three types of care available; at-home care, residential care (nursing home), and flexible care, which comes in various forms.

How much you have to pay for your aged care depends on whether you have the means to contribute or not (see above for costings). Those seeking subsidised aged care must apply for an assessment. The assessment process determines eligibility based on your care needs by the home and how much you can afford to pay towards your care and accommodation costs.

There is no difference between aged care (home) and a nursing home. However, Aged Care is a broader term which doesn’t necessarily refer to residential care, such as a nursing home. There are three types of aged care options; at-home care, residential care (nursing home), and flexible care, which comes in various forms.