Aged Care Financial Advice

Home care packages are designed to support an elderly person to live at home independently, but what can I spend my aged care package on? Once you have been granted a home care package, your package provider will design a plan that is individual and specific to you. The funds can be used on nursing care and personal care, shopping, home delivered meals, garden maintenance, assistive technology, home modifications, mobility aids, social support and companionship. The aged care package can be spent on any daily tasks and age care related needs, to keep the elderly person safe, socially engaged and living in their own home. 

Caring for an elderly person can be time consuming and stressful. Fortunately respite care in aged care provides a solution for this. Respite gives the carer a rest from their caring duties. Respite care means the elderly person moves into the aged care facility, they have their own room and ensuite, 24-hour care and support and will be encouraged to join in any of the activities or social events at the facility during their stay. The Government subsidises 63 days in a financial year for respite care. The respite recipient will be required to pay a Basic Daily Fee and any additional service fees offered by the individual aged care facility.  

The asset threshold for aged care depends on several factors. Aged care accommodation costs and ongoing fees are in part, determined by the resident’s assets and income. There are two main costs that are means tested – the cost of the room or ‘Refundable Accommodation Deposit’ and an ongoing care fee called the ‘Means Tested Care Fee’. For assets, there’s a capped value on your home ($201,231 in March 2024) unless it’s protected by a spouse/partner or family member living there. The rules around means testing to determine a future resident’s aged care fees are complicated and you should seek professional advice. 

The maximum means tested fee for aged care is determined by the future resident’s assets and income and can increase or decrease if there is a change in the resident’s financial position. The means tested care fee ranges from $0 per day to a maximum of $406 per day. There is an annual cap on the means tested care fee of $33,309 and a lifetime cap of $79,942 (March 2024). Once the annual cap is reached the resident will not pay a means tested care fee until the anniversary date of becoming a permanent resident. Once the lifetime cap is reached, the resident will no longer pay a means tested care fee. In most cases it is recommended that a future resident discloses their assets and income to Services Australia/Centrelink so the maximum fee of $406 is not charged.