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How will the new aged care legislation affect new residents?

From 1 July 2014, there are changes to how you charge new residents for accommodation. These changes will only affect new residents who enter Residential Aged Care after that date. 

The distinction between high-level and low-level care will be removed, giving new residents the choice to pay their accommodation costs as a lump sum, a daily payment amount or a combination of both. They will also be able to select extra services for an additional daily fee in participating facilities.

Residents will be required to pay a basic daily care fee.

If the resident is not receiving the full Age Pension, they will generally be required to pay an additional daily fee based on their level of income and assets.

Those already in aged care can continue with their current arrangements unless they leave care and re-enter after a period of 28 days, or if they change facilities and decide to re-enter under the new rules.

Importantly, the current income-tested care fee, which is based on assessable income, will be replaced with a means-tested care fee, which will be based on assessable income and assets. 

Accommodation can be paid in three ways: as a refundable accommodation deposit (lump-sum payment), a daily accommodation payment (daily payment) or a combination of both in all facilities. 

on 12/04/2014 by Super User
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