26 October, 2018 / IN Superannuation & retirement / by Georgia Shuwalow
We are fortunate to live in a country that provides comprehensive services to our elderly citizens.

We are fortunate to live in a country that provides comprehensive services to our elderly citizens. As part of the Government reforms to provide for the elderly they have improved the home care system offering additional support for those wishing to stay at home. The new home care packages are broken into 4 categories and depend on the Aged Care Assessment Team (ACAT) assessment results. Category 1 being the lowest level of care and 4 the highest. I often get asked how much home care costs. Firstly, you have a basic daily care fee of a maximum of 17.5% of the single aged pension ($133.98 per fortnight). Secondly, you have an income tested fee. This fee will be applicable if your annual income is above $19,276 per person of a couple living together or $24,835 for a single person, therefore if you are on full aged pension you will not have an income tested fee. The income tested fee is capped at $10,000 pa and is not payable for full aged pensioners. The income tested fee is subject to a life time cap of $60,000 and this includes income tested fees once you enter an Aged Care Facility. For example, if you were paying the $10,000 per annum for home care, after year six you would no longer have to pay an income tested fee as you would have paid a total of $60,000 over the last six years. So when comparing if you are going to stay at home or go into care consider the ongoing home care minimum cost of $3,483.48 pa compared to the minimum Aged Care Facility basic daily care fee of just under $17,000 pa.