If Mum or Dad needs to move into an aged care home permanently, how much will it cost, and what if we can’t afford it?

18 Dec

It’s completely understandable to be concerned about the costs of moving a loved one into an aged care home. There are different fees involved, but government subsidies are available to help make it more affordable. Here’s a breakdown of what to expect and what support is available:

💡 Types of Fees in an Aged Care Home

When your loved one moves into an aged care home, the costs typically include:

Basic Daily Fee:
- Everyone pays this fee to cover day-to-day living expenses like meals and cleaning.
- Current rate: Up to $63.57 per day (85% of the single age pension).

Means Tested Care Fee:
- This fee is based on your loved one’s income and assets.
- Some people may not need to pay this fee. Services Australia calculates this amount through a means assessment.

Accommodation Costs:
- Depending on financial circumstances, your loved one may:
  - Pay the full cost of the room,
  - Make a partial contribution, or
  - Receive full government assistance for accommodation.

Additional and Extra Service Fees:
- For extra services like premium meals, WiFi, or hairdressing, which are not covered by government subsidies. These fees are agreed upon directly with the provider.

💼 How to Find Out Exact Costs

Fee Estimator: Get an estimate of potential fees using the Fee Estimator Tool.

Means Assessment: This assessment, done by Services Australia or the Department of Veterans’ Affairs (DVA), will determine eligibility for financial support.

💙 What If You Can’t Afford the Fees?

If your loved one cannot afford the fees due to reasons beyond their control, they can apply for financial hardship assistance. If approved, the government may cover some or all of the costs, including:

Basic daily fee,

Means tested care fee, and/or

Accommodation costs.

Note: Financial hardship assistance does not cover additional or extra service fees.

Seek Financial Advice

It’s recommended to talk to a financial advisor before making decisions. Services Australia’s Financial Information Service (FIS) is a free resource that can guide you through the financial implications of aged care costs. Call 132 300 and say “Financial Information Service” when prompted.

It’s a lot to process, but knowing these options and supports can help you make the best decision for your loved one’s care and financial situation. You’re not alone in this journey, and help is available every step of the way.

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