The ages care system in Australia is about to experience major change. From 1st July 2014, residents entering aged care facilities will be faced with a new fee structure making it even more important to plan early and seek advice.
While a new set of rules will apply to those entering care from 1 July 2014, all existing residents as at 30 June 2014 will continue to have their fees and charges assessed under the current rules.
WHAT ARE THE CHANGES?
Accommodation Payments
There will no longer be a distinction between low level and high level care. Under the current system, those entering low level care pay an accommodation bond while high level care residents pay a daily accommodation charge unless that are entering an extra services facility.
From 1 July 2014, everyone entering care will have the choice of paying their accommodation costs as a refundable lump sum payment a daily payment or a combination of both. Extra services may still be offering by some facilities for an additional daily fee.
Residents will have up to 28 days after entering care to decide which accommodation payment option they will use and accommodation payments will be subsidized by the Government if residents don’t have sufficient means to meet the costs.
Finally, all care facilities will be required to publish the prices of their rooms on the M Aged Care website at www.myagedcare.gov.au
Source: ClearView Financial Advice Connection Point Newsletter