Relocating a beloved family member into a residential home can be a stressful endeavour, especially when it comes to calculating the costs. Often, the government will subsidise the cost of aged care, but that depends on your unique situation (how much care you need, your finances, etc.).
In this article, we’ll explain the basics of aged care, the maximum costs and which services affect your fees. If you have any questions, feel free to give us a call.
What Affects the Cost of Aged Care?
Even though the Australian Government subsidises the cost of aged care in many cases, you may be expected to contribute to the cost depending on your financial situation. For example, if you have savings, assets and a generous pension, you won’t have access to all government subsidies.
Factors that affect how much you’ll contribute to the cost of aged care include:
- The services you require
- Your financial status
- Where you need to receive care (at your residence or in an aged care home)
- The fees charged by your care provider
Fortunately, the government sets maximum limits on the fees a care provider can impose on those in need. You should at no point be unable to pay for the basic care you require.
Introduction to Minimum and Maximum Fees for Basic Care
- Basic Daily Fee
Basic care refers to care provided to you at your own home, and the current maximum basic daily cost is $51.63, and the total cost cannot exceed $18,844.95 per year. This fee contributes to the cost of services such as meals, facilities management, cleaning and laundry.
The maximum basic daily fee cannot be more than 85% of the basic full age pension rate, which is updated in March and September annually. Remember to keep checking for updates to see how you’ll be affected.
- Means-Tested Care Fee
You won’t necessarily have to pay a means-tested care fee – your fees are based on an income and assets assessment. Depending on your financial situation, you’ll contribute between $0 and $252.20 per day to the cost of clinical and personal care, which may include help with dressing, bathing, grooming, and toileting. The means-tested care fee also includes services like medication assistance and nursing services.
- Means-Tested Care Fee: Annual and Lifetime Caps
According to current Australian law, an aged care home can charge a maximum of $27,754.52 per year or $66,610.90 in your lifetime. Your care provider must obtain permission to charge extra fees for additional services that you request.
Learn more about the Commonwealth Home Support Programme to see if you could bring your costs down further.
Types of Care Available
As you might imagine, different aged care homes offer different services to their residents, which can affect the cost of the care you require. However, broadly speaking, aged care can be broken down into three categories:
- Entry-level care in your home (basic)
- Complex care in your home
- Residential care in aged homes
If you need to relocate to a residential care home, the staff will determine the level of care you require, which will affect your fees.
Want to Know More about Aged Care Fees?
At Homestyle Aged Care, we think that you should be able to make the most of your golden years, which is why we have premium, affordable residential care homes throughout Melbourne and Geelong all in picturesque settings where you’ll never feel alone. If you want to learn about our fees and services – or if you have any questions about aged care costs in general – don’t hesitate to call us.