Aged Care Regulation changes 1 July 2014
The Commonwealth Aged Care Regulation changes impacting on new residents come into effect on 1 July 2014. Last year the Commonwealth parliament passed the Aged Care (Living Longer Living Better) Bill 2013. The new legislation changes the administration and financing system for both residential aged care and aged care at home. Parts of the Aged Care Act 1997 have been amended by the 2013 Act.
Will the Aged Care Regulation changes 1 July 2014 impact on people already living in residential aged care?
None of the Aged Care (Living Longer Living Better) Act changes would impact financially on people who are permanent residents of Commonwealth regulated aged care homes as at 30 June 2014. Their Accommodation Bond agreements would not be changed. Read more about the current system of Accommodation Bonds for Residential Aged Care.
Any Accommodation Charges for direct entry to permanent High Care would continue to be payable at the flat rate agreed on entry to permanent High Care in a nursing home before 1 July 2014.
Income Tested Fees would continue to be calculated under the existing formula.
The amount of the Income Tested Fees could change as the care recipient’s financial position changed and the Commonwealth adjusted the Income Tested Fee Allowances.
Aged Care Regulation changes to Resident Classifications on 1 July 2014
The aged care regulation changes in Aged Care (Living Longer Living Better) Act removes the distinction between Low Care and High Care effective from 1 July 2014.
This means that all Commonwealth regulated aged care homes will be able to accept any potential aged care recipient who has been assessed as needing residential care. Families will no longer have to wait for the final ACAS of High Care or Low Care before applying for an aged care place for someone who clearly is not able to come home.
Previously a person with an ACAS of ‘Low Care’ had to find a place in a Low Care facility, an aged care ‘hostel’ in the old language. New ‘Low Care’ residents could be asked for an Accommodation Bond on entry to permanent residential care.
Until June 2014, a person with an ACAS of ‘High Care’ has to find a place in a High Care facility, a ‘nursing home’ in the old language. New entrants to the aged care system coming direct from home or hospital into standard Commonwealth regulated High Care could be levied a modest daily Accommodation Charge on permanent entry by 30 June 2014.
Beware, all new entrants to Extra Service aged care facilities could be asked for a substantial Accommodation Bond on entry to permanent residential care. A daily Extra Service Fee is payable for any Extra Service aged care placement.
Any advantage in entering permanent residential care before the Aged Care Regulation changes 1 July 2014?
If your family member already has an ACAS for permanent High Care and her assets exceed $120,000 then she might be financially advantaged by becoming a permanent High Care in a standard nursing home before 1 July 2014.
The current maximum daily Accommodation Charge of $33.55 per day is similar to the interest on an Accommodation Bond of $186,000.
In contrast, an Accommodation Bond of $500,000 might be required for a spacious single room in a modern aged care facility in Melbourne. The Accommodation Bond for a place in standard twin bed nursing home room could be at least $200,000.
But saving money by paying the current maximum daily Accommodation Charge that is similar to the interest on an Accommodation Bond of $186,000 might be not a good enough reason for entering residential care early.
Help is available for families facing the aged care entry challenge. Christine at Financial Care Services is experienced with Centrelink Aged Care Entry Asset Assessment Applications and the various Centrelink means tests.
If you need help understanding the Age Care Entry Asset Assessment Application and the daily fees for residential aged care you can call Christine on 03 9808 0338 to arrange a Consultation to discuss your position.
Normal hourly rate consultation fees apply for assistance with personal data collation, completing Centrelink forms and attendance at a Centrelink office with you.
If you would like further confidential, independent and professional advice about Centrelink, lifestyle aged care or financial issues please contact Christine Hopper
03 9808 0338.
Disclaimer: The information contained in this website is of a general nature only and does not constitute “financial advice”. You should obtain your own personal financial advice before investing any money or moving in to any retirement village, lifestyle community or aged care facility.
Financial Care Services is licensed to provide financial advice to individual clients based on their personal situations.
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To make an appointment for professional advice, call Financial Care Services 03 9808 0338