Category: Technical Library

Means Tested Care Fee

The Means Tested Care Fee applies to residents who enter aged care after 1 July 2014, including Low Means residents when they have a change of circumstances. The Means Tested Care Fee is used by the government to offset funding provided to the facility through the Aged Care Funding Instrument (ACFI). The amount the resident can pay is capped at the lesser of the calculated amount or their cost of care. There is also an annual limit of $28,087.41 and a lifetime limit of $67,409.85 (which includes any Income Tested Care Fees paid towards a Home Care Package).

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NDIS in Aged Care

While the NDIS continues to be rolled out across Australia until 2020, young people living in aged care may find themselves as “dual participants” – living in aged care and able to access NDIS funding. NDIS funding can be used to pay towards some (not all) of the costs of aged care accommodation and care. NDIS funding can also be used to access services in addition to the aged care services, where the aged care provider is also an approved NDIS provider these services may be delivered by the aged care provider.

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ACG Adviser Glossary RESIDENTIAL AGED CARE

Accommodation bond For those who entered care prior to 1 July 2014, the amount payable for permanent entry to an aged care facility (low care or extra service). The accommodation bond could be paid by lump sum, periodical payment or a combination of the two. The amount of accommodation bond paid (less any retention) is guaranteed by the government. Accommodation charge For those who entered care prior to 1 July 2014, the daily fee payable for permanent entry to an aged care facility (high care) for residents who are not fully government supported. The amount of accommodation charge payable depended on assessable assets and was fixed at the date of permanent entry. Accreditation Aged care facilities are required to comply with the accreditation standards set out in the Aged Care Act 1997 to be eligible to receive government funding. Aged Care Assessment Team (ACAT) or Aged Care Assessment Service (ACAS) in Vic An ACAT (or ACAS) assessment is required to access government-funded aged care services. The team is made up of health professionals including doctors and nurses, and their assessment determines the types of services for which a person is eligible. The outcome is provided in writing and is known

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Loans to fund a RAD

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.

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Superannuation

Superannuation, when held in accumulation phase by a client under age pension age, is an exempt asset for pension and aged care means testing. Account-based pensions are assessable assets that are subject to deeming except where they qualify for grandfathering.

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Category: Technical Library

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