Aged Care Advice
Aged Care can be a confusing area. Once needed, people often find the complexity of aged care overwhelming. Determining costs and the impact on Centrelink / DVA entitlements is difficult. Having to make decisions during a stressful and emotional time can adversely affect the person entering care.
Once an ACAT assessment has been completed and the level of care is determined Muirfield can help you determine the fees payable and how to best structure your assets to meet these costs. During our appointment we will focus on what to expect with fees, options for the existing home and cash flow strategies to ensure costs will be met.
It is important to obtain advice prior to making any decisions on a bond or the principal home. Quite often we can avoid the need to sell the principal residence.
High Level Care
High level care is for people who need 24-hour nursing care. This may be due to health issues, severe dementia-type illness or other behavioural problems. Residents in high care must receive additional care and services at no additional cost.
Low Level Care
Low level care focuses on personal care services (help with dressing, eating, bathing etc.), accommodation, support services (cleaning, laundry and meals) and some allied health services such as physiotherapy. Nursing care can be given when required.
Most low level aged care homes have nurses on staff, or at least have easy access to them.
Costs and fees
The costs and fees involved can differ between High and Low level care.
Daily Care Fee- This fee contributes towards daily living costs such as nursing and personal care as well as meals and laundry. All residents, regardless of level of care, are required to pay a basic daily fee.
Income Tested Fee- The income tested fee is an additional amount you may be required to pay on top of the daily care fee. The fee is determined by formula on the resident’s assessable income.
Extra Services Fee- This fee is associated with the home being able to provide you with a higher standard of accommodation and services. An extra service facility does not provide a higher standard of care. All aged care facilities are required to provide the same quality of care for all residents. This amount varies depending on the home.
Accommodation Charge- This fee is in addition to the daily care fee and payable for people requiring High level care only. The accommodation charge is used to maintain and improve your accommodation. This fee is negotiable with the care facility.
Bond- In moving into low level care or extra service care facility a bond will be payable. The bond amount will vary between both residents and aged care homes. Whilst there is no limit on the requested bond amount, the care facility must leave a minimum in assets.
In determining a bond negotiations can be done directly with the home or via the completion of an asset assessment. An asset assessment is not compulsory unless a person wishes to find out if they are eligible for any government assistance.
Once you commence discussions with the chosen facility it is important to remember the bond value is negotiable.
Payment of the bond can be via a lump sum, periodic payments or a combination of both. Any outstanding bond will incur interest. This rate of interest is variable and can change quarterly. The rate is determined by the Australian Government Department of Health and Ageing.
The aged care home is allowed to deduct a monthly retention amount from the bond for up to five years. The retention amount is set by the government and is fixed at the date of entry. The balance of the bond remains with the home as an interest free loan. The balance of the bond is refunded to you or your estate when you leave the home.
For Centrelink purposes the bond amount is exempt as an asset and is not deemed to earn income.
Please be mindful that total fees do not include any personal costs or requirements.
Aged Care information is often required at a very emotional time. At Muirfield we aim to provide you and your family a complete overview of fees, your assets and future income in moving into care.
Contact our office and discuss your situation with our Aged Care Specialist, Melinda, to ensure you make the right decisions.