If you need help at home, the Australian Government provides a range of care services.
Where to start
The first thing to do is think about what you need. You might want to stay in your own home but need some help with domestic chores. Or you might be ready to start looking at options for longer-term residential care.
Talk to your family or friends about what you want. This will help you get the right care when the time comes.
Once you have an idea of your needs, contact My Aged Care. They will:
- check your eligibility
- assess your care needs
- assess your financial situation
It’s important to plan ahead, as this process can take time. There are waiting lists for some services.
To discuss your options, speak to an Aged Care Specialist Officer (ACSO) at a Services Australia service centre. To make a free face-to-face appointment, call 1800 227 475, Monday to Friday, 8am to 5 pm. Alternatively, you can contact us if you’re not sure where to begin.
Care and help at home
To help you stay in your own home for as long as possible, the government provides subsidised home care. This is to help with everyday tasks like shopping, cooking and transport, as well as with personal and nursing care.
There are two types of home care:
- entry level care — Commonwealth Home Support Programme for people who can manage but need support with a few tasks
- more complex care — Home Care Packages for people who need more support on an ongoing basis
What you pay
Costs for the Commonwealth Home Support program vary depending on the services provider. If you can afford to do so, for Home Care Packages you may have to pay:
- a basic daily fee — a standard amount that everyone has to pay
- an income-tested fee — an amount that will vary depending on your income and assets
If you can’t afford to pay, you may be able to get financial hardship assistance.
Residential aged care
If you can no longer live at home, you may choose to move to an aged care home (sometimes called a nursing home or residential aged care facility). Care is available 24 hours a day. This can be a short-term stay or a permanent move.
What you pay
If you can afford to do so, for government-subsidised aged care homes, you may have to pay:
- a basic daily fee — a standard amount that everyone has to pay
- means-tested fee — an amount that will vary depending on your income and assets
- accommodation payment — an amount for your room, based on its quality, location and features
The accommodation payment can be one of your biggest costs. You can pay this as a:
- bond or lump sum up-front, which is refundable (called a Refundable Accommodation Deposit, or RAD)
- daily amount (called a Daily Accommodation Payment, or DAP)
- combination of RAD and DAP
If you can’t afford to pay, you may be able to get financial hardship assistance.
Selling or keeping your family home
You may be thinking of selling the family home or using the equity in your home to pay the bond (RAD). Or maybe you’re wondering whether it’s better to rent it out to help pay the daily amount (DAP).
You have 28 days after you go into aged care to decide how to pay for your accommodation. You must pay the DAP until the RAD is paid:
- if you decide to pay a RAD within those 28 days, you have 6 months to pay the RAD
- if you decide to pay a RAD after those 28 days, it is due as agreed between you and the provider
You may need professional advice to work out whether selling or renting your home is the best option, so you can contact us for more information.
Either way, be aware that what you choose to do with the family home may affect the Age Pension assets test.
If you sell the home, its value will count towards the Age Pension assets test.
If you rent out the home, its value may count towards the Age Pension assets and income test, depending on when you moved into aged care.
If you keep the home without renting it out, it is exempt from the Age Pension assets test for two years from the date that you moved into aged care. (This may vary if you are, or were, a couple when you moved into aged care.)
Short-term help
Short-term help is available, either in your own home or in an aged care home. There are different types of care:
- transition care (or after-hospital care) — for when you’ve been in hospital and need help with your recovery
- respite care — for when you or your carer needs a break (for a few hours, a few days, or longer)
- short-term restorative care — for when you’ve had a setback and want to get your independence back
Private retirement accommodation
As well as government-subsidised aged care homes, there are many private retirement accommodation options. For this kind of accommodation, you pay the full amount yourself.
The Australian Competition and Consumer Commission has information about types and costs of retirement homes.
As you can see, aged care can be complex, so it is important to seek advice.
Contact Carrick Aland’s Wealth Planning team on 1300 466 998 or visit carrickaland.com.au/wealth-planning/.
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