Home Care Services: Options for Older Australians to Stay Independent

Navigating Home Care Services and Financial Options for Older Australians

As Australians age, many wish to maintain their independence while living in their own homes. Home care services offer a range of support options that can help achieve this goal by providing assistance with daily activities, personal care, and clinical needs. At ActOn Wealth, we specialise in aged care financial advice to help you navigate these home care options and associated costs.

Types of Home Care Services

1. Personal Care Assistance with daily activities such as showering, dressing, and mobility. Meal preparation and support with eating.

2. Support Services Domestic tasks like cleaning, gardening, and home maintenance. Transportation for shopping, medical appointments, or social outings.

3. Clinical Care Nursing support, physiotherapy, and other allied health services.

Home care services can be provided privately or through government subsidised programmes, depending on eligibility and the level of care required.

Government Subsidised Programmes

1. Commonwealth Home Support Programme CHSP Offers entry-level support for basic needs like domestic assistance and transport. Designed for individuals aged 65 and over 50 and over for Aboriginal and Torres Strait Islander people. Focuses on promoting independence and pausing the decline of health or mobility. Clients pay a contribution based on a publicly available fee policy.

2. Home Care Packages Provides more comprehensive support tailored to individual needs. Four levels of care are available, from basic to high-level support: Level 1: Basic care needs. Level 2: Low-level care needs. Level 3: Intermediate care needs. Level 4: High-level care needs. Clients contribute fees based on income, including a basic daily fee and an income-tested care fee ITCF.

Private Home Care Services

For those ineligible for government subsidies or facing long wait times, private providers offer an alternative. These services often have more flexible access and a broader range of support options, such as cleaning, grocery shopping, companionship, garden maintenance, and transportation. Costs vary by provider, time of service, and type of care.

Key Fees Associated with Home Care

1. Basic Daily Fee: Up to 17.5 of the full single age pension, indexed biannually.
2. IncomeTested Care Fee ITCF: Applies to part pensioners and self-funded retirees based on assessable income exceeding income thresholds. Annual cap: 5,000 to 10,000 depending on income. Lifetime cap: 70,000.
3. Package Management and Care Management Fees: Charged by service providers, typically up to 3,600 for package management and 3,600 for care management.

Strategies to Reduce Costs

1. Gifting within allowable thresholds to reduce assessable assets.
2. Asset management, such as renovating the family home or contributing to a younger spouse's superannuation.
3. Self-managed care to lower package management fees.

How ActOn Wealth Can Help

At ActOn Wealth, we provide expert advice to help you navigate home care options, optimise funding, and reduce costs. Our services include:

Evaluating private versus government-subsidised care options. Maximising entitlements and managing income tested fees. Developing strategies to preserve wealth while meeting care needs.