Admission & Fees
- Who is eligible for admission?
- How much does it cost?
- Accommodation
- Weekly Fee
- More Information
- Financial Advice
Who is eligible for admission?
You need to be assessed by your local Aged Care Assessment Service (ACAS) as needing accommodation in a high care facility, commonly called a nursing home and which we refer to as our lodges.
Admission is available to all persons regardless of background or belief; however, each facility aims to provide at least 25% of its places to pensioners with less than $54,000 of assets to ensure that the less well off are not disadvantaged.
How much does it cost?
- You pay a weekly fee. The amount depends on your income.
- Some residents also pay an accommodation charge. The amount depends on their assets. The accommodation charge and weekly fee is discussed below.
Accommodation
What is an accommodation charge?
An accommodation charge is an ongoing charge which some residents pay during their residency if they have sufficient assets.
An accommodation charge does not apply in the case of applicants from Royal Freemasons' independent living unit developments if they were admitted between November 1997 and November 2001.
How is the accommodation charge calculated?
You will need to arrange for Centrelink or the Department of Veterans' Affairs to undertake an asset assessment and determine the applicable accommodation charge when you get your ACAT assessment. They will return the assessment to you. It is important that you forward the assessment to us promptly when you are placed on our waiting list.
If your assets are above $93,410 you can simply advise us that you will pay the maximum accommodation charge and avoid the need to declare your assets.
The accommodation charge is calculated on a daily basis, but is charged to the resident as part of their monthly account. This is 1/12 of the annual amount and necessitates an adjustment upon the resident's departure to ensure that they have only been billed up to that date.
- If your assets are below $37,500, you are not required to pay an accommodation charge.
- If you have more than $37,500 of assets, you are required to pay us up to a maximum amount of $9,811.20 per year or $26.88 per day for persons with assets above $93,410. The actual daily amount is calculated by subtracting $37,500 from your total assets and dividing this amount by 2,800.
- If you were resident in an aged care facility prior to 20 March 2008* you are only required to pay 20% of any additional assets annually above $37,500 up to a maximum amount of $6,972 per year or $19.10 per day.
- If you were resident in an aged care facility prior to 1 July 2004* you are only required to pay 20% of any additional assets annually above $37,500 up to a maximum amount of $6,106 per year or $16.73 per day.
The accommodation charge normally applies throughout your period of residency. However, if you were resident in an aged care facility prior to 1 July 2004 the charge is only applied for a five year period.
* Please note if you left residential care for more than a 28 day period you are regarded as a new resident.
How do I pay the accommodation charge?
The accommodation charge is normally paid as part of your monthly account. If you need to, we may allow you to defer the payment of this charge. However, if you do, you will be charged interest, currently at 6%, of the amount owing.
What if I have an existing accommodation bond?
If you are transferring from a low care facility and have an existing accommodation bond we may agree to allow you to transfer the balance of the bond instead of paying an accommodation charge. Residents are often advantaged by retaining an existing bond as amounts in bonds are not considered under either the asset or income tests when determining entitlement to the aged pension. If you transfer your bond the retention period would only continue for the balance of the five year period from when the bond was first paid.
What if I want to transfer to another facility?
If you transfer to another high care facility your accommodation charge would be recalculated on the basis of your assets at the time of transfer. An existing accommodation bond balance may be transferred with the agreement of both parties.
Weekly Fee
How is the weekly fee calculated?
There is a Government schedule, which determines the weekly fee applicable to each level of income. If you are a pensioner or partpensioner, we complete a form advising the Department of Health and Ageing of your admission and they then calculate your fee.
If you are a non-pensioner there is a different form, which you will need to complete. This is sent to Centrelink so that they can calculate your income. The Department of Health and Ageing will then advise us of your weekly fee. You are not required to disclose your income, however; if you choose not to, you will pay the maximum weekly fee.
What are the current fees?
- Most residents, including full pensioners and some part pensioners with lower amounts of private income pay the Standard Resident Contribution of $270.55 per week
- Residents who enter permanent care from 20 September 2009, including part pensioners with private income amounts above the income threshold and self-funded retirees pay the Phased Resident Contribution of $251.23 per week
- Residents who were in permanent care on 19 September 2009, including part pensioners with private income amounts above the income threshold and self-funded retirees pay the Protected Resident Contribution of $239.89 per week
- Residents who entered care prior to 20 March 2008, including self-funded retirees, pensioners who have agreed to pay a big bond, or residents who have chosen not to disclose their financial information to Centrelink, pay the Non-Standard Resident Contribution of 4298.83 per week
Income tested fees
- Full pensioners still only pay the applicable base fee
- Part pensioners and non pensioners will pay the base fee plus an income tested fee if they have non pension income above $406.25 per week, although in some circumstances a slightly lower income threshold applies. The weekly amount of the income tested fee is determined by subtracting the relevant income threshold amount from their total weekly income, multiplying the sum by 5 and dividing it by 12. The maximum income tested fee is $434.77 per week.
*Please note:
- The base fee for residents who have previously lived in an aged care facility before 20 September 2009 can be affected by such considerations as the date of admission to their previous facility, the amount of accommodation bond they may have paid and their amount of non pension income, if any.
- There are often delays in determining your base fee if you lived in an aged care facility prior to 20 September 2009. This may require an adjustment in your account when we receive this advice from the Department.
- There are often delays in Royal Freemasons receiving advice from the Department regarding your income tested fee. This may necessitate an adjustment in your account when we receive this advice from the Department.
- The income tested fee commences on the date of admission if you are currently a resident in a hostel or nursing home.
- Please not that residents are assessed as new residents by the Department if they have not lived in an aged care facility for more than 28 days.
How do I pay the weekly fee?
You or a representative you nominate will be sent an account on a monthly basis payable in advance. A direct debit payment option is also available. If you elect to pay by direct debit, you will still receive a monthly statement detailing all charges.
How is the weekly fee adjusted?
The weekly fee is normally adjusted by the Department twice yearly in line with pension increases. It can also be adjusted any time there is a change in Centrelink's assessment of your income.
Can the Fees be claimed as a Medical Expenses Rebate?
Yes. If you pay income tax, the Australian Taxation Office currently allows weekly fees, accommodation bond deductions, accommodation charge payments and periodic payments to be claimed as a medical expenses rebate. You are advised to contact your accountant or financial adviser to determine the impact of this rebate in your case
More Information
Commonwealth Government's Aged Care Hotline
1800 500 853
Centrelink
13 23 00
Department of Veterans' Affairs
(03) 9284 6000
Financial Advice
The advisors listed below are licensed financial planners who specialize in the provision of financial advice to prospective residents of aged care facilities.
Aged Care Financial Services
Level 4, 3 Bowen Crescent,
Melbourne 3004
1300 134 783
www.agedcarefinancialservices.com.au
Lifetime Planning Pty Ltd
700 High Street,
Kew East 3102
(03) 9859 3554
www.lifetimeplanning.com.au
