Aged care service is largely provided by the Australian Government programs (local, State, Commonwealth) from the voluntary and community sector, private and public sector and non-profit sector. The aged can access the mainstream services and support (health care, income support, and housing support) that are easily available to the whole population at a cost.
Most support and assistance are provided to that section of the aged population that is mostly sought by the frail and disabled. For most aged over 65—years age, no specific assistance is needed.
In recent years, the policy regarding aged care support aims to keep the aged people if possible. As stated by a research, the annual cost for Commonwealth, on an average is $30,000 per annum whereas the cost for Community Aged Care Package is $10,000 per annum.
Understanding the cost of Aged care support center in Australia
How much should you pay, depends on the type of support and service, service provider you choose, and financial situation. You are expected to make contribution on the accumulate cost after figuring out the care type you have been assessed for.
The Home Care Package (HCP)
If you are eligible for the home care package (HCP), you may have to pay;
- a basic daily fee or
- an income tested care fee or a basic daily fee
Being capable for the home care package means the government shall provide subsidy on the certain portion of the cost of care. The total cost of the home care package is made up of; the contribution made by the Australian Government and the contribution fee which you must pay.
How much do the Australian Government contribute for the Home Care Package (HCP)?
The Government pays different subsidy amount for each care level in the Home Care Package (HCP). The government subsidy for the package is listed below;
Level 1 – $8,750 (approx.)
Level 2 – $15, 250 (approx.)
Level 3 – $33,500 (approx.)
Level 4 – $50,750 (approx.)
(Note: The government contribution increases every year)
The contribution made by the government is directly paid to the home care provider you choose. These funds won’t affect your pension as, these are not income.
How much fee should you pay in the Home Care Package (HCP)?
The contribution made by you is the summation of the basic daily fee, income tested care fee and additional fee.
The Commonwealth Home Support Programme (CHSP)
For the eligibility of the CHSP service, you need to pay for the service you receive at a subsidized rate. No financial assessment is needed, as the fees shall be levied on per service basis with no exist cost. The service providers are deemed to charge different amount for the services.
The Australian Government subsides the fee for the reasonability and affordability. You don’t need to cover the full cost. A regular payment is done for the taken service. Incase, you are not satisfied with the service cost, you can discuss with the service provider. Even after discussion the cost doesn’t suit you, then the providers have policies that protects the least able to contribute.
The contribution does not make any impact on the pension amount, as the amount shall be directly disbursed to the service providers.
Aged Care Homes
Once you become eligible for the aged care homes, you need to bear the following expenses;
- a basic daily fee or
- accommodation fee or a basic daily fee or
- a means tested care fee or accommodation costs and a basic daily fee.
Aged care homes are available in all sizes, shapes, and prices. The only challenge you have is to find the right one suitable for your preference, needs and budget. Several costs are associated with aged care homes. The basic layout of the possible costs such as basic daily fee, means-tested carefree, accommodation, extra service fees, and additional service fees.
If you can’t afford the service cost despite getting subsidy you can consider for the financial hardship.
For the short-term care, you must pay daily fee. The costs depend on the type of short-term service care you receive. These types of care are generally for a set period. There are different types of short-term care depending on your needs but assist you in the day to day task. Basically, there are three kinds of short-term care;
- Short-term restorative care: This type of care is availed by those who are looking for daily task help instead of long-term support services.
- Transition care: These are the ones who need assistance till they recover and regain the same level of confidence after their stay in hospital.
- Respite care: This is needed when one needs to take a short career break. It could be few hours or a short stay at night just to provide everyday care.
The Australian Government subsidies short-term care provider to make the service more affordable. The cost for the service may vary. While the maximum amount you could be asked to pay shall be $10.54 per day (for service in your residence), $51.21 per day (for service in residential setting).
For Any Financial Situation
Financial support & advice
Financial planning is important to make execute the plan. If you want to manage your finances, you can straightly approach Department of Human Services free Financial Information Services. This keeps you informed about the financial decisions, investment and financial issues of the present and future needs.
If your aged care cost is beyond your control than there is financial hardship assistance to get the care. Once granted, the Australian Government shall take care of the partial fees, or whole of the charges. Each case is assessed on individual basis that may be relevant to the situation.
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