Finally some
good news...
the maximum interest rate that can be charged on any accommodation
bond has been reduced to 8.76% for residents entering care from January
1st 2009 (it was 11.31%) .
The current holiday period is a great opportunity
to spend quality time with your family.
But it can also be when you realise
that more care is needed than is available in the home environment.
Don't
stress any further, talk to us about your loved one's care needs and we can talk
to you about the best care and accommodation options available.
Send an
Online Enquiry
last updated
2nd Jan 2009 |
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Aged
Care Financials
Accommodation Bonds Simplified
Rules and regulations
It is very important to understand the rules and regulations associated with
the financials of aged care homes.
Costs Homes may be government
funded hostels, standard nursing homes, 'extra service' nursing homes and the
private sector. The costs are structured differently in each sector. Whether you
are a pensioner, part pensioner, blind pensioner or non-pensioner will affect
the payment.
Daily care fees are the same whether you are a resident
in a low level or high level care home.
These fees have two components:
Basic daily care fees are based on the pension and are indexed.
Income tested daily care fees for residents with a higher income.
Part pensioners and non pensioners may be required to pay an additional
income tested fee.
The assessment is done by Centrelink or the Department
of Veterans' Affairs.
Accommodation payments. Accommodation
bond.
You may be asked to pay an accommodation bond if you enter
hostel care. It can also apply in a low level or high level home offering 'extra
service.' In effect, the bond is an interest free loan to the home and most is
refunded to the person or their estate when they leave. If you can't afford it
then you won't be asked to pay it. The bond is not treated as an asset by Centrelink
and DVA pension Accommodation charge.
A high level care home may require
payment of an asset tested accommodation charge. It can apply for a maximum
of five years. If you pay an accommodation bond to a home you cannot also be asked
to pay an accommodation charge.
Concessional and assisted residents.
If you cannot afford to pay the accommodation bond or accommodation charge
you may be eligible to be a concessional or assisted resident. All providers must
take a minimum number of concessional and assisted residents and they receive
extra Australian Government payment for these residents.
Concessional
residents include means-tested pensioners who have not owned their own home in
the past two years and who have assets of less than two and a half times the annual
single basic age pension.
Assisted residents must meet the same criteria
as concessional residents but can have assets of more than two and a half times
and less than four times the annual single basic age pension. There are also Hardship
Provisions for people who would face genuine hardship if they were to pay an accommodation
charge.
Extra service fee. If you are in a home with 'extra services'
there will be an additional fee. The amount must be specified on the contract
which you sign before taking up residence.
Respite Care. If you
enter a residential aged care home for a short respite there will be a daily fee
but there are no accommodation payments.
Rent Assistance. You
may be able to offset some costs with Rent Assistance. It can be paid if the home
you are living in does receive a subsidy from the government for your care costs.
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complete all the important steps needed to achieve a successful aged care
placement,