The facts about the costs of Aged Care in Australia.

Fewer than one in 10 people over the age of 70 live in hostels or nursing homes in Australia . If assessed for this care there are two types of payment that may be asked for

daily care fees , and
accommodation payments . This is a contribution towards both care and accommodation .

The fees and charges , when entering residential aged care , will be determined by the care needs and by the patient’s income and assets.

Daily care fees

are those fees required for the cost of care and

each person will pay a basic fee , and
depending on income an additional ( income tested ) care fee may be requested.

Currently pensioners pay a basic daily fee of $A21.10 (indexed to cost of living ) . Non pensioners pay a basic fee of $A26.40 also indexed .

From March 1998 people entering care will have to pay daily fees which are based on income . Both pensioners and non-pensioners may have to pay an additional income tested fee. The total maximum amount that anyone may be asked to pay is either $A63.30 a day or the cost of their care whichever is the lower .

To be required to pay $A63.30 an annual income of $A56,000 or more is needed .

In NZ the maximum figure paid for residential care is approximately $636 per week and to assess the amount involves an income and asset test .

Accommodation payments

are for cost of accommodation in aged care facilities and

Hostel level care residents and people in " extra service" facilities may , depending on assets , be asked to pay an accommodation bond.

The accommodation bonds are agreed between resident and the care facility and are of no fixed amount. The bond is refunded when a person leaves the facility , less a maximum of $A2,600 a year , for up to five years. No accommodation bond is paid if assets are less than $A22,500.

People needing nursing home level care may be asked to pay , depending on assets , an accommodation charge. The accommodation charges are capped at $A12 per day depending on assets this being payable for a maximum of five years .

All money raised by charges and bonds must be used to improve accommodation and services .If the accommodation bond and charges cannot be afforded they lapse . Hostel and nursing home operators are required by law to care for those that cant pay. Government subsidies will depend on accreditation after January 1 , 2001 and accreditation or certification is required to charge bonds or accommodation charges.

There is also available respite care and home and community care carers and home patients respectively.

More than $A3 billion a year of public funding is allocated to aged care. It costs about $A40,000 a year for each person in nursing home level care - this is about $A110 a day for each resident .
Currently , residents pay less than $A27 a day towards these costs , the taxpayer funding the difference.

For more info Internet site http://www.health.gov.au/acc/

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