What happens if you can not afford aged care?

Published: October 19, 2023
What happens if you can not afford aged care

In Australia, access to aged care is a right, irrespective of your financial circumstances. We understand that not everyone can cover the costs of residential aged care, and that’s where options come into play. In this blog, we have discussed about, what can you do, if you can not afford aged care.

Navigate the Financial Landscape

Ever wondered about affording aged care? Unveiling the expense of living in a nursing home or residential aged care facility – there are four fee categories to grasp:Exploring Residential Aged Care Fees and Options

1. Basic Daily Care Fee: Every resident contributes equally to this fee, ensuring smooth day-to-day living essentials such as meals, upkeep, facilities management, and laundry.

This fee, constituting 85% of the standard full aged pension, is remitted directly to the facility or through your pension.

2. Means-Tested Care Fee: This fee’s calculated based on income and assets, including property ownership. If your assets exceed a threshold, this fee funds your personal and clinical care.

3. Accommodation Costs: Tailored to your income and assets, a Refundable Accommodation Deposit (RAD) or Daily Accommodation Payment (DAP) covers your room. It’s triggered when your assets surpass a certain point.

4. Extra/Additional Fees: Some aged care homes offer optional extras like pay TV, resulting in additional costs beyond government support.

These calculations might become challenging, particularly in the mental state when someone is preparing for aged care.

No worries! We’ve got a simpler solution for everyone. Utilise the incredibly user-friendly Aged Care Fee Estimator to determine your aged care fees.

Your Aged Care Journey Unveiled

Embarking on government-subsidised aged care? Discover the steps to streamlined support:

1. Check Eligibility: If you’re 65 or older (or 50+ for Aboriginal and Torres Strait Islander individuals) and need health assistance, you’re eligible. Quickly gauge your eligibility via My Aged Care’s online tool.

2. ACAT Assessment: Register with My Aged Care and undergo an Aged Care Assessment Team (ACAT) interview. This in-person assessment delves into your circumstances and care needs.

3. Income and Assets Test: The Services Australia or Department of Veterans’ Affairs (DVA) conducts this test to gauge your Means-Tested Care Fee and accommodation contributions.

4. Approval & Planning: Post-approval, you’ll receive a support plan and referral code, which guide your choice of government-supported room.

What happens if you can not afford aged care in Australia?

If you can’t afford aged care in Australia, you have several options:

  1. Undergo an Aged Care Assessment.
  2. Government subsidies are available, with the amount based on your financial situation.
  3. Home Care Packages can provide support for living at home.
  4. Residential Aged Care may require means-tested fees and accommodation payments.
  5. You can apply for hardship provisions if you genuinely can’t afford the fees.
  6. Assets and income are assessed through means testing.
  7. Seek financial advice to understand your specific situation and available support options.
  8. Contact My Aged Care for guidance and assistance.

Frequently Asked Questions Demystified

Financial Advisor: Seek free financial advice via Services Australia’s Financial Information Service (FIS) or explore financial support and tools through My Aged Care.

Negotiation: While some costs are set, accommodation and extra fees are negotiable with your chosen facility.

Savings & Assets: No fixed threshold; savings are considered in income and assets assessments.

Avoiding Fees: Transferring assets to avoid fees is evaluated during your funding application.

Financial Hardship: If costs become insurmountable, explore financial hardship assistance through Services Australia.

Support for All: Even if you lack means, the government ensures some or all of your care-related fees are covered.

Care360 simplifies your journey. Our FREE service matches your needs, preferences, and budget with suitable nursing home vacancies, providing tailored options reports for your review. Zero stress, zero cost – discover your path to quality aged care today.