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If someone is suffering from financial hardship and unable to pay for their cost of aged care, they may be eligible for financial hardship assistance for some or all of their aged care fees. Financial hardship assistance can apply to the basic daily fee, means-tested care fee and/or accommodation contribution/payment, it does not apply to extra or additional service fees.
People who enter an Aged Care Facility after 1 July 2014 have their ability to contribute towards the cost of their accommodation and care calculated based on their assets and income. Refer to Residential Aged Care Means Test Factsheet. Where the calculated amounted is less the maximum accommodation supplement of $58.19 per day (as at 31 March 2020) the resident is classified as Low Means.
Loans from family to fund a RAD have impacts on the cost of care and potentially estate planning. The Aged Care Act 1997 does not preclude a family member of a resident making a contribution towards their accommodation payment. However, an aged care provider must not accept a lump sum payment which would leave the resident with less than the minimum permissible asset level within 28 days of entry and the provider has sufficient information to know the person’s means.
