All Home Care recipients can be asked to pay the basic fee [3], which is 85 per cent of the basic age pension amount. The basic fee for Home Care is the same as the basic fee for residential care. DVA pays the basic fee for Australian former prisoners of war.
A contribution towards day-to-day living costs such as meals, cleaning, laundry, heating and cooling. Everyone entering an aged care home or taking up a Home Care Package can be asked by their service provider to pay the basic fee.
Residents with sufficient income can be charged an income-tested care fee [3].
If the care recipient is a full pensioner (or has an equivalent income), they will pay no income-tested care fees as the Government will pay the full amount of Government subsidy relevant to them. They can be asked to pay the basic fee.
If the care recipient is a part pensioner or self-funded retiree, then the Government subsidy will be reduced. The provider will be able to recoup any reduction in subsidy based on the care recipient’s income by charging an income-tested care fee.
If someone is already receiving a Home Care Package prior to 1 July 2014, nothing will change and they can not be asked to pay an income-tested care fee.
Prisoners of War are exempt from paying an income-tested care fee.
A care recipient’s contribution toward the cost of a Home Care package if the person has sufficient income.
The income-tested care fee [3] is calculated at the rate of 50 per cent of income above the income free area [3] (IFA) applicable to the person.
There are caps on the amount of income-tested care fee [3] certain people can be asked to pay. Once these caps are reached, the Government will pay all fees for the person.
There is also a lifetime cap [3] of $60,000 for income-tested care fees, the same cap that applies to means tested care fees [3] for residential care.
If someone transfers to Home Care from residential care, the means tested fees they have paid in Residential Care will count towards their annual and lifetime home care cap, and vice versa. If the person transfers to Home Care and they have paid in excess of any of the Home Care caps, they will not be asked to pay any more income-tested care fees but will not receive any refund for an amount in excess of the Home Care cap.
The Department of Human Services (DHS) will let the person and their provider know when the person has reached one of the caps above.
For more information about the relevant caps, please see the Aged Care (Subsidy, Fees and Payments) Determination 2014 on Comlaw at: http://www.comlaw.gov.au/Series/F2014L00875 [6]
For residents who are receiving a means-tested income support payment, the income details from the pension assessment are provided by DVA or Centrelink to DHS.
Self-funded retiree residents will be sent the Centrelink form ‘SA456 Aged Care Fees Income Assessment’ to collect their income details. If residents choose not to submit an income assessment, they may be required to pay a higher fee.
Changes to a person’s income will result in changes to the income-tested fee. DVA will use the information collected for income support payment purposes to update a resident’s income for aged care purposes.
A self-funded retiree should advise Centrelink (or DVA if applicable) of any changes in their circumstances.
A care recipient’s contribution toward the cost of a Home Care package if the person has sufficient income.
The income free area is the amount of income that an income support pensioner may receive without suffering any reduction in pension under the income test.
A care recipient’s contribution toward the cost of a Home Care package if the person has sufficient income.
A lifetime maximum on means tested care fees and income tested care fees. Once a resident reaches the lifetime cap they will no longer pay any means tested or income-tested care fees and the Government will pay for their care costs.
An extra contribution towards the cost of care that residents may need to pay depending on their income and assets and their care needs.
Links
[1] https://clik.dva.gov.au/user/login?destination=comment/reply/23355%23comment-form
[2] https://clik.dva.gov.au/user/login?destination=comment/reply/23398%23comment-form
[3] https://clik.dva.gov.au/%23
[4] https://clik.dva.gov.au/user/login?destination=comment/reply/23349%23comment-form
[5] https://clik.dva.gov.au/user/login?destination=comment/reply/23378%23comment-form
[6] http://www.comlaw.gov.au/Series/F2014L00875