Aged Care Fees & Costs

 

When making a decision about aged care for your loved ones, the first thing that you probably need to think about is aged care fees.

For most people, this is not something they’re familiar with and with the many aged care fees and charges, we understand that it can be a confusing and exhausting process.

However, it’s important to understand that costs can vary from person to person and depend on individual needs.

The cost of aged care can range from from around $18,000 p.a. – over $50k p.a. based on aged care home chosen, level of income and assets and strategy in place.

With profession advice, aged care costs can be significantly reduced. On average we save our clients $5000 per year.

We always recommend seeking professional financial advice before you begin the aged care process, in order to fully understand the costs of aged care, as relevant to your financial situation.

 

Aged Care Fees Explained

 

Aged care costs in Australia can be quite complex to understand for a lay person. So let’s take a quick look at the basic fees you need to know all about:

 

  1. Basic daily fee:  This is the fee that goes towards day-to-day costs for meals, heating, cleaning, laundry and so on. The government has set a minimum basic daily fee of $47.86 for every new resident and a maximum of 85% of the person’s basic Age Pension. This figure changes annually to match the Age Pension.
  2. Means-tested care fee:  This is an extra determined by the Department of Human Services (DHS) once they assess your income and assets. This fee has a yearly and lifetime cap therefore, you don’t have to keep paying it once you’ve reached your cap.
  3. Accommodation payment: This fee is used to pay for your loved one’s accommodation in the aged care home. Sometimes the Australian Government can  cover all or part of the aged care accommodation costs, saving you a huge chunk of the amount of money you spend. When speaking to your aged care adviser, make sure you find out if this benefit is available to you.

Each of these fees can vary, depending on individual situations. Your family’s income and pension can play a large part in determining in how much you ultimately pay in aged care fees.

 

Aged care costs in Australia: How to work it out

 

Now that you have an idea of the aged care payments  you have to make let’s talk about how to work out the exact costs.

 

  • Estimate costs

 

First you have to estimate what the aged care home costs will be. An aged care financial adviser can use an estimation tool to calculate your aged care costs. This  estimate will give you an idea of how much to expect to spend once you put your loved one in care.

 

  • Arrange a financial assessment

 

The next thing you need to do is have an expert assess your income and assets to determine your ability to cover the aged care fees and determine whether it’s necessary to sell the family home.

You can also get assistance from the Department of Human Services or the Department of Veterans’ Affairs (DVA). it’s important that you do this as soon as possible before putting your loved one in a home. This assessment will determine whether you qualify for any benefits or government assistance and can often help you save a lot of money.

 

  • Find out about provider’s costs

 

Before you put your love one into aged care , you need to talk to different providers to assess their costs. You will need to work out a balance between aged care costs and comfort to see which provider is most suited for your needs.

 

Minimise your aged care fees and charges

 

At Core Value, we are a highly specialised team of experts providing aged care advice to clients.

With decades of experience in the industry, we have helped hundreds of clients like you  maximise Centrelink and DVA support. By assessing each client’s individual financial concerns, we can also help you minimise your aged care fees so you never pay more than what you need to.

By employing clever strategies to reduce the means tested care fee and maximising the benefits owed to you we can save you thousands of dollars every year.

Give us a call on 1300 944 011 to schedule a free consultation with an expert financial adviser for aged care.

 

Speak to an

Aged Care Financial Advisor

We will assess your unique situation and advise you on the options available to you.

Contact us for a FREE consultation or please call 1300 944 011. 

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