Vol 4 Ed 5
Volume 4 Edition 5 Newsletter
FINANCIAL CARE SERVICES
Independent aged care, lifestyle and financial advice for seniors
Volume 4 Edition 5 –30 May 2014
Preparing for Living Longer Living Better
From July 2014, new entrants to permanent residential aged care will be impacted by the Commonwealth aged care reform Living Longer Living Better.
Living Longer Living Better changes both the formula for calculating the means tested Care Fee and the process for determining the Accommodation costs.
Firstly, the accommodation costs are to be based on the style and ‘quality’ of the accommodation selected for the new resident. The aged care manager must not ask the potential resident about her financial position until after she has been accepted.
In preparation for Living Longer Living Better, each aged care facility must now include accommodation information on its website. The facility must post a description of the accommodation and the Accommodation Price for a bed or room of each type in its facility.
The maximum Accommodation Price for a good quality room would be $550,000 in July 2014 unless a higher price has been agreed with the Commonwealth for a very superior place. Therefore, no longer may a standard room be priced at $750,000 for a new resident who happens to own her former home but the same room be available at only $300,000 for someone else.
Secondly, the July 2014 formula for calculating the means tested fee includes both income and assets based components. The daily Care Fee is capped at the assessed cost of care less a fixed amount and further subject to annual and lifetime caps. The interaction of the new formula for calculating the Means Tested Amount and the capping of the daily Care Fee implies that some July 2014 entrants could be levied daily Care Fees that are lower than their Income Tested Fees under the current system.
So would my mother pay more for aged care if she defers entering permanent care until July 2014? Her fees and charges would be different under the July 2014.
You could Read more about the changes in general. But for specific information about the impact on your family member contact Christine at Financial Care Services to arrange a consultation.
Arrange an appointment now to clarify the impacts of Living Longer Living Better before you finalize an aged care entry in June. Call Christine at Financial Care Services on 03 9808 0338 for an appointment.
To estimate the total costs of living in a Commonwealth regulated aged care facility for July 2014 entrants requires some data about the type and level of personal support and nursing care that the new resident needs. Please be assured that Financial Care Services is very careful about handling this sensitive personal information. Our detailed client records are paper based and not accessible via the Financial Care Services website.
Help is available. Financial Care Services offers consultation with families to Illustrate the financial implications of their choices of aged care placements.
A consultation before placing a loved one into permanent care could clarify the costs and check that the place is affordable before permanent entry is confirmed. Call Financial Care Services to book a consultation before you finalize an aged care placement.
Call Christine on 03 9808 0338 to book an appointment to discuss your aged care financing.
Financial Care Services Pty Ltd
Independent aged care, lifestyle and financial advice for seniors in Melbourne, Victoria, Australia
Australian Financial Services Licence Number
299570 (check this at www.search.asic.gov.au/fsr/flb.html)
Authorised Representative Number
252529 (check this at www.search.asic.gov.au/fsr/far.html)
Telephone – call +61 3 9808 0338
Email – contact email@example.com
Address – mail or meet at 172 Warrigal Road, Camberwell Victoria 3124
Website – visit www.financialcareservices.com.au
LinkedIn – connect www.linkedin.com/in/fincareservice
LinkedIn Company – follow www.linkedin.com/company/financial-care-services
LinkedIn Group – join www.linkedin.com/groups/Financial-Care-Services-4215797
Facebook Page – like www.facebook.com/fincareservice
Twitter Feed – follow www.twitter.com/fincareservice
Past newsletters – see http://www.financialcareservices.com.au/newsletters
Newsletter – subscribe http://eepurl.com/js41T
Disclaimer: The information contained in this newsletter is of a general nature only and does not constitute “financial advice”. You should obtain your own personal financial advice before investing any money or moving in to any retirement village, lifestyle community or aged care facility. Financial Care Services is licensed to provide financial advice to individual clients based on their personal situations.
© 2014 Financial Care Services Pty Ltd. All rights reserved.