Aged care fee changes March 2019
Residential Aged care fee changes March 2019 reflect the 1% increase in Centrelink Pensions effective from 20 March 2019. Each Aged Care Fee adjustment is relatively small but the overall impact is significant.
Basic Daily Fee for Residential Aged Care
The Basic Daily Fee for Commonwealth regulated residential aged care is set as 85% of the single rate of Age Pension.
Thus the Basic Daily Fee rises to reflect any increases in the Age Pension rate. Effective 20 March 2019, the Basic Daily Fee increased by 1.1% to $51.21.
The Basic Daily Fee pays for meals, laundry, cleaning and utility bills in residential aged care. In cash terms, all aged care residents will pay slightly more for this ‘housekeeping’ component of their aged care costs.
Commonwealth subsidy for Supported Resident’s Aged Care Accommodation.
The Commonwealth pays an Accommodation Supplement in respect of seniors who have very few resources. The Maximum Accommodation Supplement moved up to $57.14 per day from 20 March 2019. The aged care facility is entitled to the Maximum Accommodation Supplement in respect of every Supported resident.
If a Supported Resident has more than $49,500 worth of assets and /or more income than a full Age Pensioner then she will pay some Accommodation Contribution. The Commonwealth’s Accommodation Supplement payment is reduced by the amount of the Supported Resident’s Accommodation Contribution.
Seniors who entered permanent residential care as Supported Residents but now have significant assets or income pay an Accommodation Contribution equivalent to the Maximum Accommodation Supplement. These residents will pay a little more for their aged care accommodation following the 20 March 2019 increase in the Maximum Accommodation Supplement.
Permanent aged care residents’ contribution to their personal support and nursing care costs
Your Means Tested Care Fee is the amount that the Commonwealth expects you to contribute to the costs of your personal support and nursing care. The Means Tested Care Fees for permanent residents will be reviewed to take account of the small changes in the threshold amounts effective 20 March 2019. In practice, your daily Means Tested Care Fee could be reduced by a tiny amount if your asset and income position has not changed recently.
The Annual Cap and Lifetime Cap on care fees increased to reflect the indexation increase in Pensions and threshold levels in the Means Tested Care Fee calculation. If you are paying a high rate of Means Tested Care Fee then you might need to pay for a few more days before the Annual Cap is reached.
Please check your residential aged care invoices each month.
Your invoice for April 2019 could include an adjustment for the higher Basic Daily Fee allowable for the last twelve days of March.
Supported residents who pay an Accommodation Contribution could find another small adjustment on their April bills.
Mistakes in aged care invoices are not rare. If your invoice does not include the right charge for aged care accommodation then ask your aged care provider to help you understand your invoice. A small daily adjustment now could be easier to handle than a big retrospective bill next year when the mistake is discovered in an audit.
Financial Care Services your independent adviser
Financial Care Services is an independent advisory service specialising in retirees of modest means and aged care entrants. Our core values include working with clients in claiming DVA and Centrelink entitlements.
The team at Financial Care Services are here to answer your Age Pension questions and guide your understanding of aged care costs.
Help with Centrelink challenges is available from Financial Care Services, the specialist adviser to seniors in transition to new lifestyles.
To arrange an appointment for further confidential, independent and professional advice about DVA, Centrelink, lifestyle or aged care issues please contact Christine Hopper 03 9808 0338.
Financial Care Services charges fees based on the work involved in advising you about pensions and aged care fee solutions.
To make an appointment for confidential, independent and professional advice about aged care, retirement lifestyle, granny flat or Age Pension issues please contact Christine Hopper or call +61 3 9808 0338.
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Disclaimer: The information contained in this website is of a general nature only and does not constitute “financial advice”.
All eligibility for Commonwealth benefits will be determined by Centrelink or DVA, based on your personal position as documented and the legislation and Regulations in force at that time.
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