A StepbyStep Guide to Entering Aged Care
Navigating aged care can be a complex and emotional journey. This guide is designed to help you understand the key considerations, fees, and steps involved in entering aged care. At ActOn Wealth, we specialise in providing aged care financial advice to make this transition smoother for you and your family.
Steps to Entering Aged Care
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Get Your Care Needs Assessed Before moving into a residential aged care facility, an Aged Care Assessment Team ACAT will evaluate your health and lifestyle needs. This assessment determines the type of care you require, such as home care, respite care, or fulltime residential care. This service is free and can be arranged through the My Aged Care website or by calling.
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Find an Aged Care Home Use resources such as the My Aged Care website to identify suitable facilities. Visit several homes to ensure they meet your personal, cultural, and lifestyle needs. If your preferred facility is full, ask about their waitlist policies.
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Work Out the Costs Aged care costs may include a basic daily fee, a meanstested fee, an accommodation payment, and extra services fees. These are explained in detail below.
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Apply for Your Place Complete the application form for your chosen facility. You may also need to provide financial details to Centrelink for fee assessments. Disclosing this information is optional but necessary for government subsidies.
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Move In Once accepted, you will sign an accommodation agreement outlining your rights, responsibilities, and fees. Review this with your family or solicitor.
Understanding Aged Care Fees
Basic Daily Fee: Covers daily living costs like meals and personal care. It is set at 85 of the full single age pension rate, currently 52.71 per day as of March.
Meanstested Fee: Calculated based on your income and assets, with an annual cap and lifetime cap, both indexed. If your financial means are limited, this fee may be covered by the government.
Accommodation Payment: Options include a Refundable Accommodation Deposit RAD, Daily Accommodation Payment DAP, or a combination. RADs are refunded when you leave, minus any agreed deductions.
Extra Services Fee: For additional amenities like larger rooms or premium meals. Costs vary by facility.
Managing the Family Home
Your family home is often a key consideration in aged care planning.
Exemptions: If occupied by a partner or other eligible individuals e.g., a longterm carer, your home remains exempt from means testing.
Renting vs Selling: Renting can provide income for care costs but may affect social security entitlements. Selling may impact asset assessments but offers liquidity for accommodation payments.
Capital Gains Tax CGT: Exempt if the home was your principal residence. Rules differ if rented or sold after a specific period.
Social Security and Age Pension Impacts
Moving into aged care can affect your age pension entitlements.
Lump Sum Accommodation Payments: Exempt from assets tests, potentially increasing your pension.
Family Home: If your partner remains in the family home, it remains exempt for two years or longer in some cases.
Rental Income: Renting your home may make rental income assessable under the income test.
Next Steps to Navigate Aged Care Decisions
Consider these resources and professionals:
My Aged Care Website: For information on facilities, fees, and assessments.
Placement Agencies: Help find suitable facilities based on your needs.
Solicitors: Assist with legal agreements, wills, and power of attorney.
Financial Planners: Provide strategies for managing costs, maximising entitlements, and preserving wealth.
At ActOn Wealth, were here to guide you through every step of the process, offering expert aged care financial advice tailored to your unique situation. Contact us today to ensure a smooth transition into aged care with confidence.
