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Help with aged care homes

What will I pay?

There are two types of fees that you may be asked to pay:
a daily care fee (more information), and
an income-tested fee (more information).
If you are eligible, you may also be asked to pay either:
an accommodation bond (more information), or
an accommodation charge (more information).
The fees and charges payable are linked to your income and assets, whether or not you are a pensioner, and your level of care (more information). You need to be clear about your status as a pensioner or non-pensioner and may need to complete an assets assessment.
If you are a part pensioner or non-pensioner, Centrelink (more information) or the Department of Veterans' Affairs (DVA) will write to tell you your income assessment.
The Department of Health and Ageing writes to all people living in aged care homes to tell them the maximum fee that they can be charged. If you prefer, you can nominate someone to deal with Health and Ageing on your behalf. The ‘Appointment of a nominee’ form is available from your aged care home or from the Aged Care Information Line on 1800 500 853. You can also download a copy from the Medicare Australia website.
The Department of Health and Ageing also advises the aged care home what your maximum fee is, but does not provide any specific information to the aged care home about your income.

From 1 July 2006, everyone who seeks government assistance with aged care accommodation costs must undergo an assets assessment (more information) by Centrelink or DVA. This assessment will show whether you are eligible for subsidised aged care accommodation costs. If you are not eligible for subsidised accommodation costs, the assessment will help you negotiate your accommodation payment with the aged care home.
Read more: Assets assessments
Read more: Pensioner
Read more: Part pensioner
Read more: Aged Blind Pensioner
Read more: Veteran, war widow or widower
Read more: Non-pensioner or self-funded retiree
Read more: Compensational residents
Read more: Concessional and assisted residents

What do I pay until I find out my correct fee?

For the first 28 days in care, you will only pay the maximum basic daily care fee. The amount of basic daily care fee will depend on whether you are a pensioner, non-pensioner or you have paid a big bond. You don’t pay an additional income-tested fee in the first 28 days. Most people will receive a letter telling them their correct maximum care fees, including the income-tested fee (if appropriate), within 28 days.

If your maximum care fee hasn’t been advised within the 28-day period, you may be asked to pay a provisional fee (more information). The aged care home must adjust this fee when your correct maximum care fees are notified, and refund any extra amount you have paid.

If your correct maximum care fees are still not known after the 28-day period, the government recommends that homes charge residents the following provisional fees until the correct maximum fee is notified:

full pensioners: basic daily care fee only

part pensioners: basic daily care fee plus a daily provisional fee at $3.60 per day, and

non-pensioners: basic daily care fee plus a daily provisional fee at $11.90 per day.

Aged care homes are asked not to charge the maximum fee during this period.

People who have dependent children will pay up to the maximum pensioner basic daily care fee, whether or not they are pensioners, and will not pay an income-tested fee.

Quarterly reviews of income-tested fees

Maximum income-tested fees remain current for three months, based on your assessed income at the time of the quarterly review and are payable from 1 January, 20 March, 1 July and 20 September. At the end of each quarter, you may receive a refund from your aged care home if your assessed income or your cost of care changed during that quarter.

You won’t be asked to pay extra income-tested fees if your assessed income cost of care for past quarters increased during that time. And at the beginning of each quarter, you will be told if your income-tested fee has changed.

If your income falls significantly during the quarter and you would like to request a review, you can ring the Aged Care Information Line on 1800 500 853 and ask to speak to the Income Testing Team.

Other significant changes to your circumstances may also lead to a review during a quarter.

The Department may advise you that your income-tested fee per day is NIL for the next quarter if your calculated income-tested fee would be less than $1.00 per day or if your cost of care is deemed at the lowest level.

This page was last updated on: 04 April 2008

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