Many of us have spent years living in the same house – it may have been where we raised children, made happy memories with family and celebrated the milestones of life. Little wonder that the thought of giving this home up to access aged care can be a difficult one.
Do I have to sell my home for aged care?
A common question for ageing Australians is whether they will need to sell their home to receive aged care assistance or enter into aged care facilities. The short answer is that this will depend on your individual circumstances and the level of care needed.
The first step is to apply for an assessment with the government Aged Care Assessment Team (ACAT) in New South Wales, or Aged Care Assessment Service (ACAS) in Victoria, who will help to determine whether home care or a residential aged care facility is the best option:
- With home care, a service provider may visit someone’s home to help them with tasks such as getting dressed, cooking, cleaning, shopping and/or other activities.
- In residential aged care, the person moves into an aged care facility where the level of assistance is tailored to their support and care needs.
- Transition or respite care may include short term care or end-of-life care.
In Australia, the government subsidises aged care costs on a means-tested basis. Your income and assets assessment will tell you if you’re eligible for government assistance, and if you will need to pay a means-tested care fee. There are a number of fees that you may be asked to contribute, depending on your financial situation.
Typical fees for residential aged care:
- A basic daily fee, which covers everyday living costs (calculated by the Government as being 85% of the aged pension) and this is paid by you.
- Accommodation costs, which may be partly or fully funded by government, or paid by you in full if you can afford to do so (as assessed by the Government).
- A means-tested care fee, which applies if your income and assets are worth over a certain amount.
- Additional fees which may cover extra services or options (Aurrum Aged Care do not charge Additional or Extra Service Fees).
Depending on the aged care facility, accommodation fees might be paid through payments known as a daily accommodation payment (DAP), through a lump-sum called a refundable accommodation deposit (RAD), or a combination of both.
For some residents, the best option may be to sell their current home to cover accommodation and other costs. For others, it will make more sense to rent out the property and have these payments contribute to their aged care costs. This is a unique and very personal choice, and we recommend speaking with an aged care financial advisor as well as your loved ones if you’re starting your aged care journey.
Will I have any choice for aged care near me if I don’t sell my home?
It’s important to feel you have a choice in aged care providers if you are planning to move into residential aged care. The friendly team at Aurrum Aged Care would be happy to show you through any of our locations without pressure or obligation.
Finances and aged care can be a difficult and complex topic to discuss, but clear communication and advice can help you and your loved ones to make the right decision and to find your ideal level of support.
Feel free to call Aurrum Aged Care for an obligation free discussion, or to arrange a time to visit one of our residential aged care facilities on 1800 287 286 (website www.aurrum.com.au)