Aged Care Assistance
Case Studies: Aged Care fees
Upon being assessed that aged care is required, one of the key issues for many people revolves around how the fees are calculated and how they will be funded. Whilst the answers to this question is specific to each individual situation we have outlined below 2 case studies for people entering low and high care.
Case Study 1: Christine, aged 73
Christine has been assessed as requiring a low level of care (hostel) by ACAT. Her current financial position is summarised below. The Aged Care facility is not an extra service facility and requires an accommodation bond of $110,000 (which Christine funds from term deposits).
| Asset |
Asset |
Centrelink |
Actual |
Centrelink Income $ |
| Family Home |
700,000 |
0 |
0 |
0 |
| Accommodation Bond |
110,000 |
0 |
0 |
0 |
| Term Deposit |
10,000 |
10,000 |
500 |
300 |
| Superannuation Pension |
150,000 |
150,000 |
12,295 |
0 |
| Employer Pension |
0 |
0 |
12,000 |
12,000 |
| Age Pension |
0 |
0 |
15,469 |
0 |
| Personal Assets |
10,000 |
10,000 |
0 |
0 |
| TOTAL |
980,000 |
170,000 |
40,264 |
12,300 |
Fees
The table below outlines the fees that Christine will be required to pay.
| Assessable Income |
Assessed income is $27,369pa, or $1,052.64 pf |
| Free Area |
$876.11 pf |
| Excess |
$176.53 pf |
| Daily income tested fee |
($176.53 x 5/12)/14 = $5.25 per day |
|
|
|
| Fees |
|
| Basic Daily Fee |
$42.72 |
| Daily income Fee |
$5.25 |
| TOTAL |
$47.97 per day or $17,501.75 p.a. |
After 2 years the family home would become assessable, and additional planning is required.
Case Study 2: Michael, aged 72
Michael is assessed to require a high level of care (nursing) by ACAT. His assets and income are set out below.
| Asset |
Asset |
Centrelink |
Actual |
Centrelink Income $ |
| Family Home |
620,000 |
0 |
0 |
0 |
| Term Deposit |
120,000 |
120,000 |
6,000 |
4,719 |
| Superannuation Pension |
150,000 |
150,000 |
12,295 |
0 |
| Employer Pension |
0 |
0 |
12,000 |
12,000 |
| Age Pension |
0 |
0 |
13,259 |
0 |
| Personal Assets |
10,000 |
10,000 |
0 |
0 |
| TOTAL |
900,000 |
280,000 |
43,554 |
16,719 |
Fees
The table below outlines the fees that Michael will be required to pay.
| Assessable Income |
Assessed income is $29,578pa, or $1,138.00 p.f. |
| Free Area |
$876.11 p.f. |
| Excess |
$261.51 p.f. |
| Daily income tested fee |
($261.51 x 5/12)/14 = $7.78 per day |
|
|
|
| Fees |
|
| Accommodation Charge |
As Michael's assets exceeded $109,640.80 at time of entry he will have to pay the maximum accommodation |
|
|
charge of $32.76 per day |
| Basic Daily Fee |
$42.72 |
| Daily income Fee |
$7.78 |
| TOTAL |
$83.26 per day or $30,308 p.a. |
Again after 2 years the home will become an assessable asset for pension purposes and additional planning will be required.
General Advice Warning: This information is of a general nature only and has been provided without taking account of your objectives, financial situation or needs. Because of this, we recommend you consider, with or without the assistance of a financial adviser, whether the information is appropriate in light of your particular needs and circumstances.
Contact details
Suite 401 29-31 Solent Circuit
Norwest Business Park
Baulkham Hills, NSW 2153 Australia
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P:
(02) 9899 3044
F: (02) 9899 1524
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