28 October 2024

Your Guide To Aged Care Pricing

At Lutheran Services, we understand how confusing the Aged Care process can be, especially when it comes to the financial side of things. That’s why we have put together this guide, to help you feel as comfortable as possible about all things pricing.

Aged Care fees at a glance

• Aged Care has four different kinds of fees that you may need to pay.
• We have summarised these fees for you here.
• Aged Care is affordable for everyone. The Australian Government can help you pay some or all of your fees, depending on your income and assets.
• Don’t worry if it sounds confusing. Our friendly Client and Community Advisors at each of our services can explain everything and make it easier for you. So don’t go it alone. Call us on 1800 960 433.

So, how does it work?

Lutheran Services Residential Aged Care Services are government approved and subsidised services offering care and support to eligible people. Aged Care is affordable for everyone. The Australian Government can help you pay some of all of your fees, depending on your income and assets. Aged care fees cover your accommodation and the care you receive, and sometimes extra or additional services too.

There are two types of care available and different pricing for each:

1. Permanent Residential Care:

Many providers offer aged care accommodation, care and support services on a permanent, long-term basis. This is called Permanent Residential Care. To access permanent residential care, you will need an Aged Care Assessment Team (ACAT) assessment. If you are approved for permanent residential care, a combined income and assets assessment will determine how much you’ll need to pay towards your living and care fees.

2. Respite Care:

Respite care is a short-term, temporary stay at an aged care home. During a respite stay, residents receive accommodation, care and all the support they need. Respite can be a handy option when carers are in holidays, or if a resident is leaving hospital and needs a helping hand before returning home.

Anyone who has had an Aged Care Assessment Team (ACAT) assessment and has been approved for residential respite can access respite care. The criteria are the same for permanent residential care. If you are approved for respite care, you will only pay the basic daily care fee.

1. Accommodation Fee

These fees cover the cost of your room and prices are set by individual Aged Care providers, e.g. $350,000. This is usually the advertised price.

What are the different accommodation payment options?

If you are required to contribute towards your Accommodation fees, you can pay one of three ways:

Our Aged Care Calculator is a useful tool to help you estimate the cost of your accommodation. You can view the calculator by clicking here.

Ok, but how much will my accommodation cost?

While there is a set price for your room, the amount you can be asked to pay for your accommodation
is based on your income and assets. A Combined Income and Assets Assessment will place you into one of three categories:

• Fully supported (assets below $57,000): No accommodation cost payable
• Partially supported (assets of $57,000–$193,219.20): You’ll pay a contribution to your accommodation costs. The Australian Government will pay the rest.
• Financial or self-funded (assets above $193,219.20): You will be required to pay the full cost of your accommodation.

2. Basic Daily Fee

The Basic Daily Fee is set at 85% of the single Aged Care pension. The fee is set by the Australian Government and is the same across all aged care communities. Everyone pays the Basic Daily Fee. The current basic daily care fee is $63.57. The fee helps pay for your day-to-day services such as:

• Meals
• Laundry
• Heating
• Cooling
• Cleaning
• Facilities Management

3. Additional Services Daily Fee

Additional Services pays for those things that the Government does not cover but make every day a little brighter and enhance quality of life. It include things like:

• Regular bus trips
• Hot breakfast
• Flat screen TV and wi-fi
• Daily meal choices

4. Means Tested Care Fee

The Means Tested Care Fee contributes to the cost of your personal and clinical care. It is paid in addition to the Basic Daily Fee.

Because it is means tested, the fee is different for everyone, and not everyone will have to pay it. If your accommodation costs are are fully or partially supported you will not pay it. If you have self funded your accommodation costs in full you will only pay a means tested care fee if means testing shows you can afford to.

The fee is set by Services Australia based on an Income & Assets Assessment. There is a lifetime cap on the Means Tested Care fee and once a resident has reached this threshold, they will no longer need to pay the fee. The current lifetime cap is $76,096.50.

*Interest rates are subject to change. Prices are correct as at date of publishing. This page has been designed as a guide only. Your personal financial information will dictate the outcome of your income and assets assessment. Lutheran Services does not provide financial advice. We recommend that you seek independent financial advice before entering residential aged care.