Financial Care Services Newsletter

by Christine Hopper
Volume 12 Edition 5 – 31 May 2022

Financial Care Services, the specialist adviser to seniors in transition to new lifestyles

Help to stay at home

“Seniors all want to stay in their own homes and not go into residential aged care.”
“Home care packages provide the help that seniors need to stay in their own homes.”

These quotes are what the “experts” are telling us about the wants and needs of seniors.

However I have yet to locate any evidence for these claims.
Possibly, these quotes reflect the least cost to the general taxpayer rather than the views of seniors and their families.

When ‘home care’ could provide sufficient support

Seniors who can safely take themselves to the bathroom whenever they need the toilet could stay at home.
These seniors might need some help with showering or housework.

A ‘home care package’ might fund a few visits each week to provide for essential ‘personal care’ and some housework.
Family, friends or additional carer visits, could provide emotional support and social contact to reduce the loneliness.

“Help to stay at home” could be adequate for these seniors to live independently.

When is residential aged care really needed

But if you cannot get yourself up out of bed and walk to the bathroom unaided then residential care might be your best option.

Remember, most households do not have two strong adults available for carer duty all day and all night.
Therefore, your family are unlikely to always have the two fully able adults needed to operate the swing lift used to transfer frail seniors from bed to chair.

Hence, if you can only safely walk with the assistance of other people, then you might need residential aged care.

Also the seniors who cannot remember what toileting is all about, might need the constant supervision of residential aged care.

Then there are the few whose logic and self-control have deteriorated seriously.
In their confusion, these folk could injure themselves, their families and their carers.
These seniors need a calm, secure environment for their own protection.

Sadly, for some seniors, residential aged care could be the safest place to call home.

When the family prefer staying home with the highest level of ‘home care package’

“We promised our elders that we would never put them into an old people’s home.
So we must keep them in their own home or ours, with their daughter as their fulltime carer.
The ‘home care package’ will provide the help their daughter needs while their sons will keep in touch. ”

Translated into plain speak:

“The daughter will give up her life to live with the elders as their fulltime carer.
If she has to live apart from her partner while she provides care to our parents then so be it.
The ‘home care package’ might allow her some help with bathing her parents.
But she will always be responsible for their every need: physical, emotional and social.
If she uses her money to provide for the elders then that is OK as she might get something from their estate later.
The sons will not be inconvenienced timewise or financially, by their parents’ frailty.”

What help could a care recipient get with a ‘home care package’

A ‘home care package’ is like a voucher that could be used to ‘buy’ help to stay at home.

To qualify for a home care package, the care recipient has demonstrated that she actually needs some personal help.

The help needed by a physically frail senior could be ‘personal assistance’ such as showering and dressing in the morning, or help with a bedtime routine.

The family might be willing and available to provide ‘domestic services’ for the senior.

However, the daughter is not welcome to invade her parents’ privacy by helping them in the bathroom.

A more agile senior might want to use her home care package for community access: help with transport to medical appointments and local shopping.

A mentally slowing senior might want to include social support and medication management in her home care package.

The carer could fill out the one hour visit with a combination of the social engagement of preparing and eating a main meal as well as some light housework.

Another more specialised visitor could be required for the medication supervision.
The regular carers might not be qualified to hand out tablets or give insulin injections.

Would the ‘home care package’ provide the full support that each senior needs

The ‘home care package’ is like a voucher that could be used to ‘buy’ help to stay at home from an approved Home Care Provider.

The care recipient then chooses where to spend her home care package: the senior selects a Home Care Provider.
The senior then selects the actual home care services that are to be provided to her by her Home Care Provider.

If the cost of the home care services that she actually wants exceeds the amount of her ‘home care package’ voucher then she could contribute an additional amount to cover the gap.

The alternative is to adjust her home care service selection so that the cost of her services matches the value of her home care package voucher.

Please be aware that each Home Care Provider sets their own fee schedule including minimum fees for each home care visit.

What is the value of a ‘home care package’

The total amount that you could spend from your ‘home care package’ is equivalent to the amount that you contribute and the amount of home care subsidy that the Commonwealth pays into your ‘home care package’.

The Commonwealth sets the maximum amounts of taxpayer funding, the “subsidy”, for each level of home care package.

The amount of subsidy credited to your home care package is the maximum subsidy for your level of home care package less the amount of your Income Tested Fee.

The maximum home care subsidy and rates are revised each July.

If you pay the Basic Daily Fee for your home care package then this amount is also available for you to ‘spend’.

The maximum home care ‘subsidy’ rates as at 27 May 2022, are shown below.

Home care package level	Basic Daily Fee	Maximum subsidy	Total available if you pay all of your home care fees
Level 1	$10.08 per day	$24.73 per day	$34.81 per day
Level 2	$10.66 per day	$43.50 per day	$54.16 per day
Level 3	$10.97 per day	$94.66 per day	$105.63 per day
Level 4	$11.26 per day	$143.50 per day	$154.76 per day

How much money does the care recipient contribute to a ‘home care package’.

All home care recipients are expected to pay a Basic Care Fee.

The Commonwealth sets a maximum dollar amount of Basic Care Fee for each level of ‘home care package’.

As at 27 May 2022, the Basic Care Fee ranges from $10.08 per day for a Level 1 ‘home care package’ up to $11.26 per day for a Level 4 ‘home care package’.

These amounts are set as percentages of the single rate of Age Pension.

Hence the Basic Daily Fee amounts are adjusted each March and September when the Age Pension increases.

If your home care provider does not collect the Basic Care Fee then you would have less credit in your ‘home care package’ to spend on your home care.

Then the care recipient could be charged an ‘income tested care fee’.

If you are paid the full Age Pension or DSP, then you would not expect to be charged any Income Tested Care Fee for your home care package.

The Income Tested Care Fee is similar to half of your income in excess of the income that a full Age Pensioner could have but with some limits on the amount of Income Tested Fee.

As at 27 May 2022, a senior who is entitled to a part Age Pension would not pay more than $16.25 per day of Income Tested Fee for her home care package.

The maximum Income Tested Fee for the home care package is currently $32.30 per day for a senior who is excluded from any Age Pension by the Asset Test and/or the Income Test.

The amount of your Income Tested Fee could be adjusted each time the Age Pension rate or means test allowances change.

Income Tested Fee assessments are based on your income as assessed by Centrelink for Age Pension purposes.

Self-funded retirees need to submit detailed income and asset information to Centrelink for their Income Tested Fee assessments.

Christine at Financial Care Services helps clients complete their Centrelink income and assets forms for aged care fee assessments and Pension claims.

What does the Commonwealth pay into the ‘home care package’

The Commonwealth sets the ‘maximum subsidy amount’ for each home care package level

The amount that the Commonwealth actually pays into your home care package is the ‘maximum subsidy amount’ for your home care package level less your Income Tested Fee.

As at 27 May 2022, the Commonwealth subsidy for home care packages ranges from $24.73 per day for a Level 1 home care package up to $143.50 for a Level 4 home care package.

Your ‘home care package’ would be credited with the maximum home care subsidy if you are receiving the full rate of Age Pension or Disability Support Pension, (DSP).

If the Income Test could impact your Age Pension or DSP payment rate then your home care subsidy could be reduced.

The caps on the Income Tested Fees for home care ensure that a DSP or Age Pensioner, would have some Commonwealth subsidy paid for her home care package.

In contrast, a self-funded retiree with a substantial income might not qualify for any Commonwealth subsidy on a Level 1 home care package.

The subsidy would be zero if her Income Tested Fees for home care exceeded $24.73 per day, the maximum subsidy for a Level 1 home care package.

What could be in a home care package

Consider Mary a full Age Pensioner who has a Level 2 Home Care Package.
Mary’s home care package is credited with the maximum Level 2 subsidy of $43.50 per day.
Mary could be asked to pay the Basic Daily Fee of $10.66 per day for a Level 2 Home Care Package.
If Mary pays the Basic Daily Fee then she has $54.16 per day, $379.12 per week to spend on her home care.
Mary could choose to use her home care package for three carer visits each week.
On three weekday mornings, a carer could help Mary with showering.
For the remainder of each of those visits, the carer could change the bedlinen, hang up the washing and vacuum the floors on one day then thoroughly clean the bathroom and kitchen on another day then organise some shopping on the third day.
Mary could use any ‘saved’ credits in her home care package, or additional funds she contributed herself, to have a carer accompany her to the hairdresser.

Consider Age Pensioner, Tom who has a level 4 package
Tom lives with his daughter Tara.
Tara gave up her fulltime job to be Tom’s carer.
Tara still likes to work three afternoons each week just to keep in touch with the world and supplement her Centrelink income.
Tara receives the Carer Pension, a means tested Centrelink pension.
Tom cannot walk unaided so his other daughter, Tamsin, comes in when Tara goes to work.
Tom’s home care package is credited with the maximum Level 4 subsidy of $143.50 per day.
Tom could be asked to pay the Basic Daily Fee of $11.26 per day for a Level 4 Home Care Package
If Tom pays the Basic Daily Fee then he has $154.76 per day, $1,083.32 per week to spend on his home care.
Tom’s family could choose to use his home care package for daily visits.
Two carers are needed on the mornings that Tom is showered.
A registered nurse comes as part of that team so that Tom’s leg ulcer is cleaned and covered with fresh dressings.
On the other mornings, one carer could manage to get Tom washed and clothed then Tara helps to walk him to his daybed.
In the evening Tara and Tamsin settle Tom into bed.
Tom’s home care package does not stretch to having another carers’ visit each evening.
When Tom has a fall then two strong people are required to lift him.
The ambulance teams are called to do the lifting when Tom’s daughters cannot both come to him.

Christine at 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 Christine Hopper at Financial Care Services, the specialist adviser to seniors in transition to new lifestyles.

Christine has neat handwriting just right for inserting your data into small printed spaces.
She helps clients complete Centrelink forms.
Christine could help you with collating your supporting documents and then mailing your form to Centrelink.

Assistance with completing Age Pension Claims and the Commonwealth aged care means testing forms is available to clients of Financial Care Services.

Christine 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 costs, granny flat or Age Pension issues please contact Christine Hopper or call +61 3 9808 0338.
______________________________

Christine Hopper
Financial Care Services Pty Ltd
Independent aged care, strategic lifestyle and Social Security advice for seniors in Melbourne, Victoria, Australia
Telephone – call +61 3 9808 0338
Email – contact info@financialcareservices.com.au
Address – mail to 172 Warrigal Road, Camberwell Victoria 3124
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Disclaimer: The information contained in this newsletter 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.