These fees are very straightforward to understand. Extra services Fees can be compulsory or optional dependent on the facility.
Some facilities will charge an Extra Services Fee for additional items that are optional such as
•Glass of wine with evening meal
•Phone in room
•Higher quality meals
These fees would be added as a per day charge. Residents may have a choice of individual additional services, or they may be packaged.
This can add a considerable amount to the overall fees payable and it must be realised that in many cases it can be a negotiable cost.
Whilst they may make aged care fees higher, they also may add a better quality of life in the way of a more enjoyable experience in an elderly person's last period of their life.
Of the four fees payable when a person enters an aged care facility permanently, this one is one that can be difficult to understand. The Means Tested Care Fee is a fee payable by those residents who can afford it. It is intended to be a contribution towards the day to day costs of their care.
The Daily rate will be dependent on their financial means which is determined by The Dept Human Services. It is based on the combined income and assets of the individual. You cannot look only at assets or only at income to calculate this fee - it is a COMBINED income and asset tested fee. So, on the face of it, it may look like low assets, under the asset threshold, that an individual may be gong to be low means and not have to pay a MTCF, HOWEVER, if they have a defined benefit pension of $40,000 pa, even though they have few assets, they will still not be classed as low means.
There are caps in place to limit this fee, both annual and lifetime.
The annual cap is $27,532.59 (anniversary...
This fee is perhaps the most understandable of all of the four sets of fees that may be payable. The Basic Daily Care Fee is the fee payable by all residents, regardless of their asset or income situation.
This fee will be payable by permanent aged care residents
and those individuals who require respite care in a facility.
It's intention is to cover the cost of care and is set at 85% of the
annual single age pension and will be indexed quarterly.
There is ONLY ONE EXEMPTION –veterans who are former prisoners
of war or Victoria Cross recipients will not have to pay this fee.
This fee covers:
IT COVERS THE COSTS OF CARE
This fee is currently $51.21 per day
and will cost the resident $18,691.65
pa (March 20, 2019 to June 30, 2019)
This fee is often misunderstood in that it is equal to 85% of the full single age pension. Some people who are on a partial pension will only interpret it as "85% of the age...
The Fee Assessment process can be confusing - people generally are unsure about which of the four sets of fees they will be up for.
The first step to having it made clear is to get assessed!
The Dept of Human Services is responsible for assessing residents moving into aged care facilities.
Every individual will be required to complete an SA457 form (a combined income and asset assessment) that will determine whether they will pay the full raft of fees or whether they will be partially or fully supported by the government.
If an individual chooses not to complete the form, they will be required to pay the full raft of fees up to the limits of the imposed caps.
There are four sets of fees that can be payable, and whether an individual will be required to pay some or all of the fees will be determined by the assessment.
A letter of assessment will be forwarded to the resident who will be required to pass on to the facility of choice so they will know how to charge for care and...
Have you considered offering aged care as an advice area? If not, why not?
NOW is the right time to enter this field. While you can position yourself as a specialist BEFORE every adviser is offering it.
There are increasing beds in homes which means that there is increasing opportunities for advice provision.
I have found this to be such a rewarding area of advice. I have found an absolute passion for this area and feedback proves it to be so valuable to my clients. You can give so much more than financial advice in this area - you can guide your clients through the confusing, emotional transition to care with empathy and support and for this, clients are willing to pay.
I didn’t expect to like the aged care space, and I certainly didn’t expect to LOVE it! But that’s what happened.
You could make a difference, and you certainly would add an additional income stream to your practice, which, with the new world of Opt-outs and reducing insurance commissions, is...