Make a tough decision a little easier by knowing the facts first
If you’ve reached the point where you have no option but to consider aged care either for yourself, a partner or your parents, there’s no doubt you’d be faced with many decisions.
It’s not an easy thing to do, and many families agonise over moving parents into an aged care facility.
And if it’s become an urgent decision due to an illness requiring constant care, you’ll have added pressures to get through the application process even quicker.
Take your time (if you can) to visit a few aged care facilities and talk to the administrators and the residents, to get a real feel of the home. They should give you loads of information regarding your options and the financial decisions associated with the differing care levels.
Everyone’s situations will differ, and some people may choose to arrange home nursing help if they have support from family and friends and unlimited finances.
However, if home care is not an option, the following will provide you with a guide to aged care costs.
Aged care costs: Basic daily fee
The basic daily fee is used for your everyday living expenses. This includes meals, laundry, cleaning and some bills such as electricity and basic telecommunications. The basic daily fee is the same for everyone regardless of your eligibility for the Age Pension.
This is a fee that every aged care facility will ask you to pay. This fee will apply from the day your care starts to the day your care ends and will still apply even when you’re on social leave or in hospital.
Most providers will need this fee paid up to one month in advance so make sure you ask them how they expect this payment when you’re making your visits to the facilities.
Aged care costs: Means-tested care fee
Another thing to ask your provider is whether they’ll ask you to pay a means-tested care fee. This fee is a contribution to the day to day care costs you may need. As the name suggests, this fee is means based, meaning the amount you pay will depend on your combined income and assets assessment.
This can go two ways:
- You don’t need to pay the means-tested care fee as the Australian Government will pay the full cost of your care, or
- You will need to pay the means-tested care fee, and the Department of Human Services will tell you how much this is.
If you do have to pay, the good news is there is an annual and lifetime cap in place, and once these have been reached, you don’t have to pay this fee anymore.
Aged care costs: Accommodation
Each aged care home can charge you a fee for the type of accommodation they provide. This fee is designed to cover bricks and mortar (the building) and any associated maintenance costs.
When you contact the providers, they should advise you of this cost and make it very clear to you what it covers. This is a factor which will vary from each home, so make sure you find this out and take it into account when working out your costs.
The accommodation fee will vary with various factors both externally and internally. These include, but are not limited to:
- Local property prices (and associated Council rates)
- The size of your room
- The style of your room (self-contained etc.)
- Property amenities (gym, swimming pool, gardens etc.)
Aged care costs: Additional services
If you’ve ever booked a hotel, you’ll be aware of all the extra add-ons that you are upsold on. The same theory applies to your aged care facility.
When you’re looking at the aged care homes, ask the provider for a list of their additional services. Once you’ve decided on what you need, discuss these with the provider as you’ll need to have an agreement in place.
Additional services can include:
- Cable or satellite TV channels
- Phone and internet
- Onsite hairdresser and beautician
- Specialist therapies such as massage, aromatherapy, hydrotherapy
- Specialist services such as dermatologists, pediatrist etc.
- Facilities like a gym, pool, cinema, workshop, library etc.
- A wider choice of meals and inclusions such as beer, wine or spirits
Another thing you should be aware of is what’s known as a ‘fee for service’ which are charges for things like dry cleaning or special outings and events. These charges are not regulated by the government, but you’ll be given choices by the aged care home.
Want some help working out what you can afford for aged care?
If you’ve already got enough on your plate and you’re unsure of what aged care is going to cost you (and what you can afford), speak to one of our finance specialists. With many years of experience, we’ll help you work out a budget that will cover your aged care costs.
Email us at: enquiry@ekfinancialgroup.com.au
Or call us on 03 9020 1888
