Does the choice of Aged care service affect how much I will pay for care?
How much you pay for accommodation will depend on the residential service that you choose. This is much the same as buying a house where you may pay more for a bigger house or in a better location or with better facilities.
You can now compare the cost of accommodation for all service providers on the government website www.myagedcare.gov.au.
The basic daily care fee is the same for all residents in all services because it is a flat fee set at 85% of the basic rate of the Single Age Pension (indexed every six months).
The amount you will pay for the means-tested fee depends on your income and assets, not the service you choose to live in. Department of Human Services (DHS) or Veterans' Affairs will calculate your assessable income and assets and use a formula to work out the fee you will be asked to pay.
The fees for any extras you choose to access will vary, and you can ask for a schedule of fees to decide if you wish to pay for them.
Before making any decisions, contact an accredited aged care adviser to talk through the care options available to you, the costs associated with them and the best way to restructure your finances to pay for the appropriate care.
Disclaimer: Prepared without taking into account your objectives, financial situation or needs. Before acting on any information in this article, Olive Grove Financial Advice recommends that you consider whether it is appropriate for your circumstances. Information in this article was correct and current as of 23 May 2022.
Olive Grove Financial Advice is operated by Bill Savellis through The Financial Advisor (Australia) Pty Ltd ABN 72 619 546 431, who is a Corporate Authorised Representative (No. 1278394) of Havana Financial Services Pty Ltd.