Working Out The Cost
| Whilst the Australian Government helps with the cost of residential aged care it also expects those who can afford it to contribute to the cost. Residents in aged care can be asked to make two types of payment: Daily Fees and Accommodation Payments. 1. Daily Fees Daily fees contribute towards your daily living costs such as nursing and personal care, meals, linen and laundry. You may also be asked to pay an additional Income Tested Fee depending on your financial situation. Centrelink and/or the Department of Veterans Affairs bases this fee on an income assessment and the amount you may be asked to pay will depend on the amount of private income you have above a certain level. Full-rate, means-tested pensioners will not have to pay an additional income tested fee. 2. Accommodation Payments Accommodation payments contribute towards the cost of your accommodation in residential care. You will only be asked to pay an accommodation payment if your assets exceed an amount set by the Australian Government. You may be asked to pay either an accommodation bond or an accommodation charge. Accommodation Bond - For residents in low care or receiving extra services in either high or low care. Accommodation Bonds are like an interest free loan to aged care residences and by law must be used by the residence to improve building standards and the quality and range of aged care services provided. Accommodation Bonds are completely safe as they are guaranteed by the Australian Government. If you are required to pay a bond you will need to enter into an agreement with your chosen residence to do so. You have 21 days after entering an aged care home to enter into this agreement. The amount of the bond will be agreed between you and the aged care residence. The Government does not fix the amount of the bond, however you cannot be charged a bond which would leave you with less than a set level of assets. You can pay your bond as a lump sum or in regular periodic payments or as a combination of the two. New residents have six months to pay an accommodation bond as a lump sum however you may be charged interest on the unpaid lump sum amount from the time you enter the aged care residence. The aged care residence will deduct from your accommodation bond an agreed monthly retention amount. This is used towards maintaining and improving your accommodation. Retention amounts can only be deducted for a period of five years. Your agreed bond and monthly retention amount will also be setout in your Resident and Accommodation Bond Agreement. If you change aged care residences your bond balance can be transferred to the new residence. The remaining bond balance will be returned when you no longer require residential aged care. Accommodation Charge - For residents in high care. High Care Residents with assets over a certain amount may be asked to pay an Accommodation Charge. This charge is an amount paid daily in addition to your Daily Fee and any Income Tested Fee. The amount of Accommodation Charge to be paid must be agreed to by you and the residence when you move in. However, the Government sets a maximum charge aged care residences can ask you to pay. As with an Accommodation Bond this charge is used by aged care facilities to maintain and improve your accommodation. It is not compulsory for everyone entering aged care to undergo an assets assessment. Assessments are necessary if you want to establish your eligibility for a Government subsidy. If you choose not to undertake an assessment you may be asked to pay an Accommodation Bond or the maximum Accommodation Charge. Extra Service In addition to the above fees you may wish to select a residence which offers extra service. This means the home is able to provide you with a higher standard of accommodation and services, which will cost you more. The amount for extra service varies from home to home depending on the services offered but is regulated by the Government. |
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