My parent received compensation for an illness or injury that led to their need for aged care. How does this affect the cost of their care, and what do I need to know?
I completely understand that navigating compensation and aged care costs can feel overwhelming. When your parent receives compensation for an illness or injury that contributed to their need for aged care, it can affect how much they (and the government) contribute to their care. Here's what you need to know to help your parent through this process.
How Does Compensation Affect Aged Care Costs?
The Australian Government subsidises aged care services to make care accessible and affordable. However, if your parent's compensation includes funds meant for aged care (either help at home or in an aged care home), they are expected to use this money to help pay for their care.
This means:
- Paying Back Costs: Your parent may need to repay some of the money that the government has already subsidised for their care.
- Future Care Costs: They will likely need to use the compensation to cover part or all of their future aged care costs.
What Should You Consider in a Compensation Claim?
When making a compensation claim, it’s crucial to consider both past and future aged care costs. Your parent’s legal representative should factor these costs into the claim. The specific amount needed will depend on the level of care they require and how long they may need care for.
- For future aged care cost estimates, you can email the Department of Health and Aged Care for more information.
- For understanding how to repay past aged care costs, email Services Australia.
How Do You Declare Compensation Money?
You must inform the government if your parent receives compensation, so they can adjust their aged care contributions accordingly. Here’s what to do based on their situation:
If They Haven't Started Receiving Aged Care Services Yet:
- Complete an Income or Means Assessment:
- For help at home: Complete an income assessment.
- For an aged care home: Complete a means assessment.
- These forms will ask about any compensation money received. Be as transparent as possible to ensure accurate calculations.
Learn more about income and means assessments through Services Australia.
If They Are Already Receiving Aged Care Services:
- Revise Their Assessment: Contact the department that did the original assessment — either Services Australia or the Department of Veterans’ Affairs (DVA).
- They will adjust the contributions based on the compensation amount received.
Supporting Your Parent
This process can feel complicated, but understanding these steps helps ensure your parent’s care costs are handled fairly and transparently. If you need further assistance or have questions, reaching out to the relevant departments can provide clarity. Remember, you’re not alone — there are resources and support systems available to help you through this.
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