Aged Care
Residential Aged Care
Formal residential aged care is accessible to people who can no longer live safely at home. The first step towards entry to Commonwealth regulated aged care is an Aged Care Assessment.
People who are assessed as eligible for “Low Care” may become residents of Commonwealth regulated hostels. Hostel residents are expected to walk to the dining room for meals and communal activities. Hostel staff provide some help with the activities of daily living including supervision of medications.
People who need more extensive assistance may enter Commonwealth regulated nursing homes for “High Care”.
Some privately operated facilities offer the equivalent of aged care at commercial fee rates. In Victoria, these facilities may be registered as “Supported Residential Services”. A typical SRS would provide the equivalent of hostel care only. Some SRS are staffed and equipped to cater for people requiring additional support.
What is the cost of living in formal aged care?
Ongoing daily care fees for both hostels and nursing homes are set by the Commonwealth and include a means tested fee assessed by Centrelink. Residents and their partners, who choose not to disclose their full asset and income situation to Centrelink, are charged at the maximum fee rates.
A consultation with Financial Care Services could estimate daily fees based on your financial situation.
People who move from home or hospital, into a standard nursing home pay a daily Accommodation Charge. The amount of the Accommodation Charge is based on the resident’s assets at the date of entry.
A consultation with Financial Care Services could estimate daily fees and accommodation costs based on your financial situation.
New entrants to hostels and “extra service” nursing homes may be asked for an Accommodation Bond. The amount of the Bond is negotiable subject only to the Commonwealth requirement that the resident has a prescribed level of assets in excess of the agreed Bond amount.
The Commonwealth has prescribed rules about excluding a new resident’s former home from the asset assessment when a family member has been living with the person entering aged care.
Accommodation Bonds can be paid as lump sums and/or periodic payments. The periodic payments are similar to an interest charge on the unpaid part of the Bond.
How much Bond could be required from our family member? The maximum Bond amount depends on the resident’s financial situation; the actual amount is subject to negotiation.
Before you disclose any financial information to an aged care facility, a consultation with Financial Care Services could provide guidance about negotiating the Accommodation Bond.
What does an Supported Residential Service (SRS) cost?
Each SRS sets its own fee scale. Many SRS facilities charge a flat all inclusive weekly fee for hostel like care. An additional weekly fee could be required where the resident needs more support. Some SRS facilities require the resident to “purchase” an apartment and then pay a lower weekly fee, such as 85% of the single rate of the Age Pension.
How does the cost of an SRS compare with the fees for formal aged care?
A typical SRS charges a weekly fee similar to the total maximum fees and charges for a standard nursing home placement.
A consultation with Financial Care Services could compare the costs of living in an SRS or formal aged care based on your financial situation.
Do we have to sell the family home to finance aged care?
The aged care fees need to be paid each month. If the resident’s income including any means tested pension, is insufficient to cover the fees then the former home might be leased and/or an asset sold to generate adequate financial resources. The Centrelink means tested fee for aged care and the Age, or Service, Pension could be impacted by the leasing or sale of the former home.
A consultation with Financial Care Services could provide guidance about the impact of leasing, or selling, the former home on the means tested aged care fees and the Age or Service Pension in your particular situation.