{"id":8167,"date":"2023-09-11T12:03:52","date_gmt":"2023-09-11T02:33:52","guid":{"rendered":"https:\/\/adelaideprivatewealth.com.au\/aged-care-financial-planning\/"},"modified":"2023-09-11T12:03:52","modified_gmt":"2023-09-11T02:33:52","slug":"aged-care-financial-planning","status":"publish","type":"post","link":"https:\/\/adelaideprivatewealth.com.au\/aged-care-financial-planning\/","title":{"rendered":"Aged Care Financial Planning"},"content":{"rendered":"
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When looking into the financial elements associated with planning for aged care, there is a lot of information out there which can be confusing. With this in mind, it\u2019s important to have your questions answered by those who are experts in finance specialising in the aged care industry. These experts will look at your unique situation and advise you on your options. Things to consider may be superannuation, pension, existing assets and liabilities, banking, investments as well as Centrelink benefits which you may be eligible to receive.<\/p>\n

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Looking into the fees and charges associated with aged care can get quite complex and as such it is advisable to seek advice from professionals within the industry. These fees and charges are regulated by the Government. The amount of which you are likely to pay will vary and is unique for everyone. Some fees\u00a0are the same for all residents and some can be based on your income. Whether you\u2019re on a pension and the type of pension it is can also impact on the amount you will be required to pay.<\/p>\n

There are two main areas of fees associated with moving into\u00a0residential aged care<\/a>; daily and income tested fees. A facility will also require either an accommodation bond for low care or an accommodation charge for high care residents.<\/p>\n

Home\u00a0care packages<\/a>\u00a0require a set daily contribution fee which is regulated by the Government. The only addition to this fee will depend on your income and is determined by the service provider following guidelines set by the Government.<\/p>\n

Residential aged care facility costs<\/h3>\n

There are two main areas of fees for consideration in residential aged care. Firstly, the\u00a0daily care fee<\/em>\u00a0is a contribution to your daily living costs such as nursing and personal care, living expenses, meals, linen and laundry, heating and cooling.<\/p>\n

In addition\u00a0to a daily care fee residents may be asked to pay a\u00a0daily income tested fee<\/em>. Centrelink or the Department of Veterans Affairs bases this fee on an income assessment. If you are a full pensioner you will not have\u00a0to pay an income tested fee. Part-pensioners and blind pensioners are usually required to pay this fee, depending on circumstances such as the level of care required, and any dependent children. These circumstances in addition to your income will be taken into account if you are a non-pensioner.<\/p>\n

Secondly, an accommodation\u00a0payment in the form of either a\u00a0RAD or a DAP<\/a>\u00a0will need to be considered.<\/p>\n

A RAD\u00a0can be paid as a lump or regular periodic payment (DAP), which you will be required to pay if your assets\u00a0exceed a set amount outlined by the Government. The amount of your RAD will be decided by the aged care facility you enter into.<\/p>\n

The Government requires that residents be left with a certain amount of assets once the RAD is paid, the RAD is refunded when the resident leaves the facility minus the retention rate. The retention rate is a set amount which is paid every month for a certain amount of years, every year after this time (for example, after 5 years) no retention rate is withheld.<\/p>\n

Since the exact amount for fees, RAD\/DAP and asset requirements can change at any time, it is best to contact the aged care home directly\u00a0for current rates and fees.<\/p>\n

An\u00a0accommodation charge<\/em>\u00a0on the other hand is a set amount per day for high care residents to pay if their assets are over a certain amount. If the resident\u2019s assets are between certain amounts they will pay a lower fee. If the resident has assets under a certain amount they do not have to pay this charge, the Government will subsidise it, they will just have to pay the daily care fee and the daily income tested fee depending on their income.<\/p>\n

Home care packages (Level 1 \u2013 4) pricing structure<\/h3>\n

The pricing structure for\u00a0Home Care Packages<\/a>\u00a0are set, regulated and funded by the Government. Fees charged for Home Care Packages vary between levels.<\/p>\n

There are currently four levels of Home Care Packages:<\/p>\n