Last amended: 1 July 2014
Funding for the care of residents varies based on their relative care needs. All residents are assessed by the aged care facility and have a classification under the Aged Care Funding Instrument (ACFI) which determines the level of Government subsidy.
The Government also contributes towards the cost of a care recipient's accommodation, depending on whether the facility meets certain building requirements, its age and when it was last refurbished.
Certain reductions may be made to the amount of Government subsidy based on financial means of the care recipient. An approved provider will be able to recoup the reduction in Government subsidy by charging the care recipient.
More ? [3]
There is funding appropriated through the Veterans’ Affairs portfolio to provide the Australian Government subsidy for entitled veterans and war widows/widowers in residential aged care facilities.
It includes the Veterans’ Supplement* payable to aged care providers who provide care to veterans with service related mental health conditions. The Supplement has been introduced to ensure that a veteran’s mental health condition does not act as a barrier to accessing appropriate care. These payments to the aged care facilities are paid through the DHS payment system.
*This is an amount payable to residential care providers and is different to the supplement with a similar name that is payable to eligible persons under the VEA [7].
Veterans' Entitlements Act 1986.
People receiving aged care services are expected to make a financial contribution to the cost of their care and accommodation, if they can afford it. Some aged care fees are set by DSS at the same rate for all residents. Some fees are determined according to each individual's care needs and the level of their income and assets, capped at maximum rates set in the Aged Care legislation and the costs of the individual's care.
DVA pays the basic fee for Australian former prisoners of war. These residents are exempt from paying any income-tested or means tested care fees but can be asked to pay for the costs of their accommodation depending on their means.
Eligibility for government assistance is established through an income and assets assessment. Aged care facilities receive the maximum government subsidies for residents with low means. People who were provided with permanent residential aged care before 1 July 2014 and pre-20 March 2008 and qualified for government assistance with their accommodation costs are known as supported residents, and concessional or assisted residents respectively.
The Aged Care legislation also contains financial hardship provisions that may be available to a care recipient who is unable to pay either part or all of fees. If DSS [7] grants a hardship determination, a hardship supplement may be paid to the provider and the care recipient fees are reduced.
Aged Care Act 1997 → [11]The Department of Social Services
Links
[1] https://clik.dva.gov.au/user/login?destination=comment/reply/23361%23comment-form
[2] https://clik.dva.gov.au/user/login?destination=comment/reply/23354%23comment-form
[3] https://clik.dva.gov.au/book/export/html/23361#tgt-csref_acmt_ftn4
[4] http://www.comlaw.gov.au/Details/F2014L00862
[5] https://clik.dva.gov.au/book/export/html/23361#ref-csref_acmt_ftn4
[6] https://clik.dva.gov.au/user/login?destination=comment/reply/23392%23comment-form
[7] https://clik.dva.gov.au/%23
[8] https://clik.dva.gov.au/user/login?destination=comment/reply/23389%23comment-form
[9] https://clik.dva.gov.au/user/login?destination=comment/reply/23352%23comment-form
[10] https://clik.dva.gov.au/user/login?destination=comment/reply/23365%23comment-form
[11] https://clik.dva.gov.au/book/export/html/23361#tgt-AgedCareAct1997_ftn1
[12] http://www.comlaw.gov.au/Series/C2004A05206
[13] https://clik.dva.gov.au/book/export/html/23361#ref-AgedCareAct1997_ftn1