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Aged Care Assistance 

Case Studies: Aged Care fees

Upon being assessed that aged care is required, one of the key issues for many people revolves around how the fees are calculated and how they will be funded. Whilst the answers to this question is specific to each individual situation we have outlined below 2 case studies for people entering low and high care.

Case Study 1: Christine, aged 73

Christine has been assessed as requiring a low level of care (hostel) by ACAT.  Her current financial position is summarised below. The Aged Care facility is not an extra service facility and requires an accommodation bond of $110,000 (which Christine funds from term deposits).

Asset

Asset
Value 
$

Centrelink
Value $

Actual
Income $

Centrelink Income $

Family Home

700,000

0

0

0

Accommodation Bond

110,000

0

0

0

Term Deposit

10,000

10,000

500

300

Superannuation Pension

150,000

150,000

12,295

0

Employer Pension

0

0

12,000

12,000

Age Pension

0

0

15,469

0

Personal Assets

10,000

10,000

0

0

TOTAL

980,000

170,000

40,264

12,300


Fees
The table below outlines the fees that Christine will be required to pay.

Assessable Income

Assessed income is $27,369pa, or $1,052.64 pf

Free Area

$876.11 pf

Excess

$176.53 pf

Daily income tested fee

($176.53 x 5/12)/14 = $5.25 per day

Fees

Basic Daily Fee

$42.72

Daily income Fee

$5.25

TOTAL

$47.97 per day or $17,501.75 p.a.



After 2 years the family home would become assessable, and additional planning is required.


Case Study 2: Michael, aged 72

Michael is assessed to require a high level of care (nursing) by ACAT.  His assets and income are set out below.

Asset

Asset
Value $

Centrelink
Value 
$

Actual
 Income 
$

Centrelink Income $

Family Home

620,000

0

0

0

Term Deposit

120,000

120,000

6,000

4,719

Superannuation Pension

150,000

150,000

12,295

0

Employer Pension

0

0

12,000

12,000

Age Pension

0

0

13,259

0

Personal Assets

10,000

10,000

0

0

TOTAL

900,000

280,000

43,554

16,719


Fees:

The table below outlines the fees that Michael will be required to pay.

Assessable Income

Assessed income is $29,578pa, or $1,138.00 p.f.

Free Area

$876.11 p.f.

Excess

$261.51 p.f.

Daily income tested fee

($261.51 x 5/12)/14 = $7.78 per day

Fees

Accommodation Charge

As Michael's assets exceeded $109,640.80 at time of entry he will have to pay the maximum accommodation

charge of $32.76 per day

Basic Daily Fee

$42.72

Daily income Fee

$7.78

TOTAL

$83.26 per day or $30,308 p.a.


Again after 2 years the home will become an assessable asset for pension purposes and additional planning will be required.

General Advice Warning: This information is of a general nature only and has been provided without taking account of your objectives, financial situation or needs. Because of this, we recommend you consider, with or without the assistance of a financial adviser, whether the information is appropriate in light of your particular needs and circumstances.

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