Legislative Threshold Update – 1 July 2015
This article provides a summary of the fees and charges that apply to home care and residents of residential aged care facilities.
Post 1 July 2014 rules
Fees and charges for residents who:
- first enter a residential aged care facility on or after 1 July 2014, or
- first entered residential aged care before 1 July 2014 and subsequently cease to be provided with care for more than 28 days, or
- first entered residential aged care before 1 July 2014 and move aged care facilities and make a written election to be covered by the post 1 July 2014 rules.
Residential Aged Care – Daily Care Fees
| Basic daily care fee | Paid by all residential aged care residents | $47.49 per day |
| Means tested care fee | Means tested care fee is the lesser of:• Means tested amount – Maximum accommodation supplement $53.39 per day
• Annual cap • Lifetime cap |
$25,528.71 $61,268.92 |
| Means tested amount = Income test contribution + Asset test contribution | ||
| Income test contribution = [(Total assessable income – income free area) × 50%] ÷ 364 Total annual assessable income:
• Income assessable for Centrelink/DVA purposes • Centrelink/DVA income support payments less minimum pension supplement of $894.40 pa each and clean energy supplement of $366.60 pa each • DVA war widows pension • DVA disability pension Income free area: • Single • Couple, illness separated |
$25,264.20 $24,796.20 |
|
| Asset test contribution= (17.5% of assessable assets between $46,000 and $157,051.20, plus 1% of assessable assets between $157,051.20 and $379,153.60, plus 2% of assessable assets above $379,153.60) ÷ 364 Total assessable assets:
• Assets assessable for Centrelink/DVA purposes • Refundable accommodation deposit/contribution • Capped value of former home (applies separately to both members of a couple) |
$157,051.20 |
Home Care – Daily Care Fees
| Basic daily care fee | Paid by all people who start receiving a Home Care Package from 1 July 2014 | $9.77 per day |
| Income tested care fee | • Income < income free area | Nil |
| • Income between income free area and income test threshold. Lesser of:• ((Total assessable income – income free area) × 50%) ÷ 364
• Cost of care • Annual cap • Lifetime cap |
$5,105.74 $61,268.92 |
|
| • Income exceeds income test threshold. Lesser of:• (((Total assessable income – income threshold) × 50%) + $5,000) ÷ 364
• Cost of care • Annual cap • Lifetime cap |
$10,211.48 $61,268.92 |
|
| Income free area:• Single
• Couple – living together • Couple – illness separated |
$25,264.20
$19,601.40 $24,796.20 |
|
| Income test threshold:• Single
• Couple – living together • Couple – illness separated |
$48,890.40
$37,408.80 $48,422.40 |
Deeming Thresholds and Rates
Threshold single $48,600
Threshold couple $80,600
Lower rate 1.75%
Higher rate 3.25%