Aged Care Planning FAQs
There are a number of changes to the new aged care rules but most importantly there is one level of care and same accommodation payments options for all residents. The accommodation fees are published and it is an option to negotiate that down. Different from before, now the Aged Care facility can no longer reduce the lump sum by retention amount and most importantly there has been an introduction of the Means Tested Care fees which is determined by an income and asset test.
At Investlink Group we can assist if it is best to sell your home or keep it. If the house is kept we can best structure the accommodation payment to ensure the family home does not affect your Centrelink tests. If the house is sold, we can also help how best to invest the proceeds and get the balance right between generating an income, maximising the age pension and minimising the aged care fees.
To simplify the fees and charges, the fees can be divided into four categories;
- Entry Fees - This can be paid as a refundable accommodation deposit (RAD) and /or Daily Accommodation Payment (DAP).
- Extra / additional service fee - Payable if the facility has an extra or optional services. This fee is set by the facility packaged extra or optional extra.
- Basic Daily Fee - This is payable by all residents. This is $46.50 per day.
- Means tested care fee - Payable if means tested amount is over a set amount. This is determined by assessable income and assets.