Who funds aged care in Australia, and what do you need to know when planning for finances and affordability? How much does good care actually cost? These are common questions for lots of families looking for aged care support.
The reassuring news is that everyone can expect to be able to access quality care in Australia. Here’s some more information on what to expect when it comes to fees, funding and other financial considerations for aged care.
Who pays for aged care in Australia?
Broadly speaking, aged care in Australia is funded by a mix of public and private spending. On an individual level, who pays will depend on each person’s circumstances and whether they’re receiving support at home or in residential aged care.
Home care services can be accessed through government-funded services, not-for-profit organisations and also by private providers.
And who pays for assisted living, or residential aged care? There are two possibilities if you’re moving into aged care: government-funded and non government-funded aged care providers. Let’s look closer at each of these provider types and what they entail.
Government-funded aged care homes
The Australian Government assesses and subsidises aged care in a large number of approved aged care homes across the country. If you’re eligible, the government might agree to pay some or all of your aged care costs. If a government-funded aged care home will be the right option for you, you can still choose between different government-funded providers in your area.
One of the benefits with government-funded aged care homes is that the Federal Government outlines aged care Quality Standards that each provider must meet. You can see how well providers comply with these standards and compare options at Find a Provider.
How you can apply for subsidised aged care
To see which aged care support might be right for you, and if you are eligible for subsidised care, you can head over to the official government service My Aged Care. An aged care assessment will take into account things like your health, your current situation and any support you might currently receive.
Non government-funded aged care homes
There are also a number of private aged care homes, retirement villages and independent living options that don’t receive subsidies from the Australian Government. These providers aren’t regulated or subsidised by the Federal Government, however they are regulated by state and territory governments. You will need to pay the full cost yourself to use these services.
How you can apply for non-subsidised aged care
If you wish to apply to live in a non government-funded aged care home, you would apply directly with the provider. It can still be a good idea to start with a My Aged Care assessment, as this can help you understand all of the available options for finding care.
How do aged care fees work?
Non government-funded providers set their own fees, so these will vary depending on the provider you choose.
If you’re accessing aged care with a government-funded provider, as many Australians do, there are four types of fees to consider.
- The basic daily fee, which covers things like meals, laundry and daily living assistance.
- The accommodation fee, which covers your room and is based on your income and assets.
- A means-tested care fee, if applicable, which is also based on your income and assets. And,
- Additional service fees for extra services, where relevant.
Our article on aged care fees in Australia goes into extra details about each of these fees and what they do.
Navigating the costs of aged care
So the big question for many families will be – how can we best plan out finances if a loved one is moving into residential aged care? Here are a few key things to think about.
Budgeting and financial planning
It’s a very wise idea to seek the services of a licensed financial planner or advisor when structuring finances for any big life changes. An experienced financial advisor can help with common questions around things like whether you might need to sell your home, or how much you’ll be expected to contribute to your aged care costs.
You might also wish to access Services Australia’s free service called the Financial Information Service (FIS). While this service doesn’t provide personal financial advice, it can help you make more informed decisions about aged care costs and options.
Financial assistance
There is support to be found for those who can’t afford the costs of aged care. If you are concerned about being able to afford aged care support, My Aged Care has a page on Financial Hardship Assistance that can provide more information.
The Home Equity Access Scheme
In some cases, people might wish to use the equity in their home to help fund their aged care costs. The Home Equity Access Scheme enables eligible and approved older Australians to take out a voluntary non-taxable loan to supplement their retirement income. Remember – it’s always recommended to get personalised financial advice for your circumstances to ensure you can find the best aged care support for your situation.
It can really help to be informed about all of the options and resources that are available when it comes to accessing aged care. My Aged Care provides a page that outlines ways to find financial support and advice including organisations, services and tools.
Understanding your fees
Aged care providers in Australia should all maintain clear and transparent pricing so you’re never left guessing about costs. Here at Aurrum we are proud to provide our 5-star standard of aged care accommodation, chef-catered meals and comprehensive care services with guaranteed No Extra Fees. You can easily see pricing on each of our aged care home location pages, and we are happy to help with personalised enquiries about affordability. At times we are also able to offer special deals and pricing.
Explore Aurrum Aged Care Homes
We know the process of finding the right local aged care support can be a challenge – and that the choices and process can be overwhelming at times! This is why we offer obligation-free tours at our aged care homes in Victoria and NSW. To book a free tour or to ask any questions, you can simply contact our friendly team on 1800 287 786.