Aged care is likely to get a lot more expensive from July 1, 2014 when means testing for the government accommodation supplement will be based on income and assets of the recipient as opposed to just income-testing alone.
The current income-tested care fee – which is based on assessable income – will be replaced by a means-tested care fee that will be based on both assessable income and assets (which may include your home). The government will either pay the maximum accommodation supplement or a part accommodation supplement, depending on the recipient's assessed financial circumstances. For many, this will mean ongoing care fees will be higher if entering into an aged care facility on or after July 1, 2014.
Further, the manner to which payment for the accommodation should be made, the amount of accommodation fees payable and any on-going care fees will also be affected. Critically, the family home may also impact the accommodation fees payable.
The table on the following page summarises the current situation and the post July 1 changes.
The changes will not affect people who are already living in aged care facilities or those who are already receiving care at home - unless they leave care and re-enter after a period of 28 days, or if they change facilities and decide to re-enter under the new rules. However, anyone now receiving care at home who enters aged-care accommodation on or after July 1 would have to enter into a new agreement with the new provisions.
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