My Aged Care Budget Estimator 

Published: October 9, 2023
My Aged Care Budget Estimator

Determining Your Contribution to Home Care Package or Residential Aged Care Expenses. 

Introduction to Care360’s ‘Aged Care Budget Estimator‘ Tool and Overview of Aged Care Costs in Australia.

Explore below the details about Care360’s Budget Estimator tool, along with a concise overview of aged care expenses in Australia. 

The Care360’s Aged Care Budget Estimator 

Australia’s supportive aged care system operates with government subsidies, where an individual’s financial situation, including their assets and income, influences the extent of their contribution toward their care. 

Seniors receiving the full aged pension might find little need for additional payments towards aged care services. At the same time, homeowners with substantial assets and income may be obligated to cover various Budgets, contributions, and payments. 

The Function of Care360’s Aged Care Budget Estimator 

Care360’s Budget Estimator is a user-friendly online tool designed to assist you in planning for your future.My Aged Care Budget Estimator 

This straightforward calculator estimates the potential aged care Budgets applicable to your situation based on your circumstances.

You can utilise this estimator to project the costs associated with Home Care Packages and moving into a room within a residential aged care facility. 

The calculator prompts you to input information about 

The Budget Estimator will ask for very basic information 

  1. Your age 
  2. Up-front capital (Will their home be sold to contribute to aged care Budgets?) 
  3. Approximate value of their home 
  4. Other savings and assets 
  5. Ongoing income (Family Contribution, Aged Pension or any other sources of income)  

The Budget Estimator’s output is an approximate value. The precise amount you pay will hinge on your financial position upon entering care and the chosen service provider. 

Feel free to explore Care360’s Aged Care Budget estimator here to gain a rough understanding of the expenses related to residential aged care or home care packages.

At Care360, we assist you throughout your aged care journey. As a complimentary aged care placement service, we aid numerous Australian families monthly.

Exploring Aged Care Fees and Charges in Australia 

The Australian Government revises the Schedule of Budgets and Residential and Home Care Charges quarterly. The schedule can be accessed here: Schedule of Budgets and Charges for Residential and Home Care.

In Australia, Budgets for residential aged care are categorised into three segments: 

Basic Daily Care Fee (BDCF) 

This uniform Fee is paid by all aged care residents and is not subjected to means testing. It encompasses everyday expenses within the facility, including meals, cleaning, laundry, and administration. The payment frequency is typically on a monthly or fortnightly basis. 

The basic daily care fee is 85% of the standard full-aged pension, currently amounting to $58.98 daily. This Budget is deducted from the pension recipients’ pension and directly remitted to the aged care facility. 

Means Tested Care Fee (MTCF) 

Derived from evaluating a resident’s income and assets, including owned property, the means-tested fee is a continuous contribution toward personal and clinical care expenses.

Means-tested fees are determined through assessments conducted by Centrelink or the Department of Veteran Affairs. 

Effective from July 1, 2023, the maximum means-tested care fee charged by an aged care home is: 

  • $31,706.83 annually, or 
  • $76,096.50 over a lifetime.

Refundable Accommodation Deposit (RAD) or Daily Accommodation Payment (DAP): 

The Refundable Accommodation Deposit serves to cover residential aged care room costs. It is sometimes referred to as an ‘aged care bond’.  

Negotiated between the resident and the facility, the RAD varies and depends on location and facility amenities.

The Australian Government covers the RAD for residents with income below $31,504.20 and assets below $57,000. Those with income surpassing $76,096.50 and assets exceeding $193,219.20 must fully pay the RAD for their accommodation.

The RAD is typically refunded upon exit or can be chosen as a non-refundable Daily Accommodation Payment (DAP). 

Supplementary or ‘Extra’ Service Budgets 

In addition to the Budget above categories, aged care facilities might offer supplementary services like hairdressing, pay TV, specialised menus, and tailored furnishings. Opting for these additional services or an ‘extra services’ room could involve negotiations for extra Budgets, which are not government-subsidised. 

Understanding Home Care Package Costs 

Home Care Packages are allocated across four levels to Australian seniors, with Budgets varying according to income and assets. 

Basic Daily Care Fee 

This Budget, which is not subject to means testing, ranges from $10.88 to $12.14, depending on the Home Care Package level. Notably, most providers recommended by Care360 do not levy this Budget. 

Income-Tested Fee 

Centrelink determines This Budget after completing an income and assets assessment. It can reach up to $34.84 per day. 

Service and Management Fee 

These additional charges are drawn from the package and differ between providers.  The income test encompasses the following: 

  • Government income support payments 
  • Interest accrued on bank accounts and other investments 
  • Rental income 
  • Business earnings 
  • Superannuation income
  • Foreign earnings
  • Private trusts 
  • Compensation payouts 

The assets test includes: 

  • Deposits held in financial institutions 
  • Shares 
  • Managed investments 
  • Vehicles and boats 
  • Overseas assets 
  • Superannuation balance 
  • Real estate (excluding the primary residence) 
  • Household belongings and personal effects 
  • Special collections or valuable items 

Take The Right Decision with Care360’s Aged Care Budget Estimator

Care360’s Budget Estimator is a valuable tool that estimates your potential aged care expenses based on your income and assets.

While the estimator provides useful insights, seeking professional financial advice is advisable, as individual circumstances vary. You must undergo an aged care and income assessment to confirm your actual expenses. You can find additional information about these assessments here:

Finding an Appropriate Aged Care Provider 

This is where Care360 excels. As Australia’s premier aged care placement service, we are committed to aiding families throughout their aged care journeys.

Leveraging our tailor-made software, we match you with current residential aged care vacancies or home care package providers that align with your budget, location, care requirements, and personal preferences.

We then create a customised aged care Options Report at no cost, with zero hassle or stress on your part. 

Streamline your aged care options comparison by accessing all necessary information conveniently.

We do not receive any funding from aged care homes. All our data is independently collected and reviewed. 

Get Our Quality of Care Report is currently available to you at no cost. 

Care360 is funded by the fees paid for our consulting services and referral fees from our finance and real estate partners. While all of our partners have been thoroughly reviewed, you are under no obligation to use them at any stage. If we are receiving any referral fees, this will be made known to you at the time as part of our Transparency Promise.

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