Aged Care

Aged Care Not That Easy!

By Mark Teale

For children who live far away from mum and dad, and only visit at Christmas, the vision of their parent’s declining health may be quite a shock. Ageing’s toll on individual health becomes a family issue – which can’t be ignored.

For most people the steps they need to take in trying to help mum and dad are complex and frustrating, especially if you have no prior knowledge of the requirements and the legislation.

I have written a number of articles covering the complexities of aged care – let’s revisit the process in logical and easy steps:

  1. Before mum or dad can be placed in a nursing home they require an assessment of their health and the care they need. This assessment is completed by an Aged Care Assessment Team (ACAT) or if you are in Victoria it will be Aged Care Assessment Service (ACAS).
  2. Completing and lodging a ‘Permanent Residential Aged Care – Request for a Combined Assets and Income Assessment’. The information provided is assessed by either Centrelink or the Department of Veterans Affairs to establish your residential status and the fees you may have to pay.
  3. Finding a suitable home. The government website is an excellent starting point. This site will provide details of the homes in the area which would be suitable, the services offered and the entry costs.
  4. Understanding the costs. All residents pay a basic daily fee (currently $48.44 per day), this amount is based on 85% of the basic age pension. Some homes do charge an extra service fee. This fee will give residents options in relation to meals, crockery and cutlery, wine, pay television etc. It can vary depending on the services offered but does generally average $25 to $30 per day. A person’s income and assets will decide whether they are required to pay a daily means-tested care fee (MTCF). The maximum MTCF a person can pay is capped, currently at $26,041pa. The largest cost a resident may need to pay will be the Refundable Accommodation Deposit (RAD), the average at present is very close to $400,000. As the name suggests this amount is refundable and is government guaranteed.

The final step is complicated, and trying to understand the fees and how they are calculated by reading the information is not the easiest option.

Decisions need to be made on the basis of a clear understanding of what fees would be payable and how much age pension would be payable in the future.

Dealing with the emotions surrounding these decisions is difficult enough, so my suggestion is to outsource to a person who not only understands the issues but is also removed from the emotional side.

This should ensure the best result for mum or dad in the long run.

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The information contained in this document is of a general nature only and does not take into account your particular objectives, financial situation or needs.

Accordingly the information should not be used, relied upon or treated as a substitute for specific financial advice.

While all care has been taken in the preparation of this material, no warranty is given in respect of the information provided and accordingly neither Centrepoint Alliance Limited nor its employees or agents shall be liable on any ground whatsoever with respect to decisions or actions taken as a result of you acting upon such information.

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