Aged Care Financial Advice

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Morgans Aged Care Advice Service

Aged Care advice service

Our Aged care advice team simplifies the complex aged care system, offering solid financial guidance. We illustrate how the Government may subsidise your aged care costs. We analyse diverse payment choices for in-home or residential care. Additionally, we craft comprehensive cash flow projections over five years, integrating tax offsets and Centrelink exemptions. We also estimate future asset values for your beneficiaries and model the advantages of concessions for your home.

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Home care

Our aged care advice team offers valuable insights into Home Care Package subsidies from the Federal Government. We provide clarity on the calculation of basic daily and income-tested fees, emphasising their impact on care hours and cash flow. Additionally, we can guide you through options for fee payments and cash flow management, as well as offering assistance on the process of obtaining an Aged Care Assessment Team (ACAT).

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Residential care

When it comes to paying for accommodation in aged care facilities, there are several options available. Residents can opt for Refundable Accommodation Deposits (RAD), where they pay a lump sum that is refunded when they leave, or Daily Accommodation Payments (DAP), which are ongoing rental-style payments. Alternatively, they can choose a combination of RAD and DAP, or opt to pay the DAP from their RAD balance. For those who qualify as low-means residents, there's an opportunity to receive an accommodation contribution subsidised by the Federal Government, which means they won't have to pay the accommodation payment directly. Understanding the financial implications involves grasping how the basic daily fee and means-tested fees are calculated. These fees can impact Age Pension benefits and cash flow significantly. In terms of financing initial costs and ongoing fees, families have various options to explore, including personal savings and selling assets. Additionally, there are considerations regarding the family home. Each option carries its own set of financial and emotional implications, and families should carefully consider their choices based on their individual circumstances.

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How does it work?

Contact your Morgans adviser to arrange an aged care advice appointment, which includes:

  • An initial free discussion (30 minutes).
  • Completion of an aged care questionnaire.
  • Review of the returned questionnaire and follow up discussion if required.
  • Preparation of a comprehensive aged care strategy paper specific to your circumstances, comparing up to five accommodation funding options.
  • Presentation of the strategy paper, answer questions and discuss any associated issues.
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Keep up to date with Aged Care changes

Starting July 1, 2025, changes to daily care costs include the removal of the current means-tested fee, replaced by a hotel supplement ($12.55/day) for those with $240,000 in assets, and a non-clinical care cost ($101/day) for those with $500,000 in assets. The annual cap will be removed, resulting in higher yearly costs, with an additional $12,000 for maximum fee payers.  
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Residential aged care fees include a daily accommodation cost (85% of the single age pension), a means-tested fee (based on income and assets), and extra service fees. The maximum daily fee is $403, and the annual cap is $34,174. After reaching a lifetime cap of $82,000, the means-tested fee is no longer required.

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A Refundable Accommodation Deposit (RAD) is a lump sum paid for a room in residential aged care, either as a full payment, daily payments, or a combination. Once paid, the RAD is generally non-refundable until leaving the facility. Daily Accommodation Payments (DAP) are not refundable. From January 2025, the maximum RAD will increase to $750,000, and facilities charging more must get government approval.
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Additional service fees and extra service fees are charges by some residential care facilities. Additional services, like TV, telephone, or hairdressing, are paid directly to the facility and are not government-subsidized. Extra service fees cover amenities like higher-quality linens, food, and toiletries, and are charged whether or not used. These fees are also not subsidized by the government.
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When a person enters aged care, the treatment of their former home depends on the presence of protected persons and Centrelink rules. If a protected person remains in the home, its value is exempt from assessment for aged care fees. However, if no protected person is living there, a capped value of just over $206,000 is included in the means test until the home is sold.  

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Low means residents, also known as concessional residents, are individuals with limited assets and income who may be eligible for government assistance with care and accommodation costs in residential aged care. A person is considered a low means resident if their assets are less than around $206,000 or their income is under $84,323 (for singles), or $83,647 each for a couple.
 
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A "protected person" is someone whose living situation can affect how their former home is assessed for means-tested care fees. Categories of protected persons include a spouse, a dependent child (under 16 or 16-25 in full-time education), a carer (who has been living with and providing care for the person entering residential care for at least two years), and a close family relative (living with the person for at least five years).
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Contact us to find out more

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