Commonwealth Government funded residential aged care facilities are for people who can no longer live at home as they are unable to live independently, need assistance with everyday tasks or with their healthcare. To be eligible for a place in a residential aged care facility you must be an older person or a younger person with a disability, early onset dementia or special care needs. People entering residential aged care will need to be assessed by ACAT and receive a support plan outlining the care you have been approved to receive.
There are two types of residential aged care facilities; non-government funded, and government funded facilities. Non-government funded aged care means you will have to pay the full cost, as these facilities are not subsidised or regulated by the government. Government funded facilities are subsidised by the government and must meet certain quality standards. Each government-funded aged care facility receives the subsidy directly from the government. The subsidy they received is based on an assessment of the resident’s care needs and how much they can afford to contribute to the cost of their care and accommodation based on a means test.
There are three costs that all residential aged care facilities require payment for; a basic daily fee, accommodation costs and a means tested care fee. Everyone pays a basic daily fee for the day-to-day services they receive. The basic daily fee is set at 85% of a single person’s rate of the aged pension. This increases twice a year at the same time the aged pension increases. The accommodation cost is the amount you contribute for the cost of your room. A means tested care fee is a contribution some residents pay towards the cost of their personal and clinical care. The cost is determined by a means assessment.
You will receive a fee advice letter once your means assessment has been completed. The letter will outline your basic daily fee, the maximum fee you will pay for accommodation costs based on your eligibility for government subsidies, and your means tested care fee.
Depending on the residential aged care facility you may be charged additional costs. These costs are generally not set by the government, and you must pay the full costs. These costs include an additional service fee for services that go beyond the minimum care offered by the facility and/or an extra service fee for an upgrade to hotel-type services. These fees must be in the resident agreement you will sign when you enter residential aged care.
Once you have accepted an offer of a place in an aged care facility, you will be asked to sign a legally binding document, known as a resident agreement. The resident agreement must be signed before you start receiving services from the facility or shortly after you move in. As a resident of the aged care facility, you have fourteen days to withdraw from the agreements although you will be required to pay for any fees and charges mentioned in the agreement for the period you are in care. You may also be required to sign an accommodation agreement, which outlines a resident’s accommodation costs and other agreed conditions. You may also be asked to sign an extra service agreement, which is given to residents who have chosen a facility or room with extra services.
We recommend you speak to Price Financial Intelligence for independent financial advice before moving into an aged care facility.
Contact us for a free thirty-minute consultation with an aged care lawyer.
Any information on this website is general in nature and should not be taken as personal legal advice. We recommend that you speak to a lawyer about your personal circumstances.