What will aged care cost?

Cashflow planning is the key to ensure you can pay your fees and personal expenses as well as protect the value of your estate - aged care personal advice helps you make the right decisions for your family.

Residential care.

When planning for residential aged care, you should consider:

  • How to pay for your room

  • How to manage cashflow to pay ongoing expenses while you live there

  • What happens when you leave.

Because fees can change over time or when your circumstances change, aged care personal advice to review all implications is important. Good strategic planning requires the skills and knowledge – as well as the as well as compassion and experience to understand your personal goals. We also have access to industry leading software to accurately evaluate and compare the financial options for your situation.

Accommodation costs

You are moving to a new home, so you might be asked to pay for your room and the right to live there. The fee structure depends on which of these categories you fall into:

  • No accommodation payment
    If you have very low levels of income and assets, the Government will pay your accommodation costs.

  • Pay an 'accommodation contribution'
    Depending on your income and assets, you may be asked to pay part of your accommodation cost and the Government will pay the rest.

  • Pay an 'accommodation payment'
    If you have higher levels of assets and/or income you may need to pay the full cost of your accommodation, at the rate published by the care provider.

We can help you work out which category applies to you. When you move into care, Services Australia will do an assessment to confirm the category. ​If you have been asked to pay an accommodation payment, you will need to agree the amount directly with your residential care provider before you move in. The prices are published on the MyAgedCare website, although some providers may agree to negotiate a lower amount. You can choose to pay the agreed accommodation payment/contribution as:

  • A lump-sum 'refundable accommodation deposit/contribution', or

  • Rental-style payments called a 'daily accommodation payment/contribution', or

  • A combination of both.

You have 28 days from the day you move into residential care to decide which payment method you prefer. The daily fee is payable until the lump sum is paid (if at all).

Living expenses and care costs.

You will also be asked to pay contributions towards your day-to-day living expenses and care costs.

  • Basic daily fee
    Everyone pays this flat fee to cover day-to-day living costs such as meals, cleaning, laundry, electricity and heating. The fee is set at 85% of the basic rate of single person Age Pension.

  • Means-tested care fee
    How much you pay depends on the assessment of your assets and income. Annual and lifetime caps also apply. Services Australia calculate this fee and it can change each quarter.

  • Additional services fees
    Your care provider might offer additional services for residents who want more choice. Services may include entertainment options, meal choices, social activities or personal services such as manicures and hairdressing. It is a good idea to talk to the staff about what is available and the costs.

Home care packages.

If you stay at home and receive a home care package, the amount of money available to spend depends on the package level. Most of this money is paid by the Government but you may be asked to pay:

  • A basic daily fee
    Set at a maximum of 17.5% of the basic rate of single person age pension

  • An income-tested fee
    Based on your assessable income if you are a part-pensioner or self-funded retiree or only receive a non-means tested pension.

It is important to compare home care providers and ask what they charge for administration, case management and services. You can start your comparisons on the MyAgedCare website. The higher are these fees, the less money you will have available to pay for care.

If the budget allocated to your package is not enough to cover your care needs, you might be able to pay extra fees to access extra care services.

 

Find out more.

For more information, download our Covering the cost of residential aged care brochure.