How early could OUR FAMILY consider Aged Care Planning?

At least 5 years in advance meets Centrelink current guidelines.

What is the “too late” position mean in relation to aged care?

Too late to plan – same as no planning having been done – your options become reduced – and any attempt to re-arrange affairs then could be undone by Centrelink – especially if done with the intention to reduce aged care fees.

How can I reduce my aged care fees?

Plan well in advance – Plan while not needing Care - hoping you never will - not on the Friday before the Monday a person is going into care – as Centrelink can reverse your actions if done to reduce Aged Care Fees.

What is the best way to plan?

Do it now – don’t wait till too late and an Aged Care event happens in your family.

Why have I heard people have had to sell their houses to pay for care?

They did no planning and sometimes it is an option put in front of consumers.

My Mum had to go to care and the Aged Care people asked me if we had a house or money to pay for the room – Why was that?

The facilities are often interested in your financial position, however Centrelink is the body that will determine what you will pay and will instruct the facility on your financial capacity.

Why would the Aged Care facility ask me if we had any money?

In the main they like to receive lump sum sums (as they are in fact interest free loans from consumers) of money as opposed to daily payments and they are not required to pay any income, or capital gain on your funds. Additionally, after November 2025 – the facility is allowed to deduct a retention amount of 2% for the first 5 years of any lump sums paid

why could I be asked to sell my home to pay for care?

No plan has been put in place for a possible aged care event.

How could my pension be cancelled?

• Your house is currently exempt for pension purposes – if sold, once settled, and money in the bank - could put you over the limit for pension

• Or - if you rented out your home to help with aged care fees – the income could reduce your pension + after 2 years house will be counted as an asset and treated the same as sold

• There is a third possibility – speak to us about the two-year exemption rule if property sold

How could it be that my will wishes may not be honoured?

If in your Will you wanted your home to go to kids and remainder passed to a charity – and then it was sold it to pay for care –and paid no attention had been paid to the will –it could all end up in the hands of the charity .

What is the basic daily fee for care?

Everybody pays - calculated as 85% of a single basic pension or if not on the pension - out of your bank account.

When is the Hotelling Supplement payable?

If MTA > MAS (If your Means Tested Amount is greater than the Maximum Accommodation Supplement).

The Hotelling Contribution covers non-care-related services (e.g. cleaning, catering) Calculated as:

• 7.8% of assets over $252,000 or

• 50% of income over $101,105

Daily cap of $22.15, adjusted twice yearly.

What is the new Non-Clinical Care Contribution?

The NCCC covers personal care, activities calculated as:

• 7.8% of assets over $532,055.20

• 50% of income over $136,136.00

• Daily Cap: $105.30, adjusted twice yearly

• Lifetime cap: $135,317.69

How could a reverse mortgage help pay fees?

Drawing on equity in home to pay for fees so a home may be retained rather than be sold to pay for care fees.

Should we use a placement person for aged care or do it ourselves?

If your family cannot find a place by picking up the phone and ringing around in your area – yes – this an optional service available.