AGED CARE CHANGES
From 1 July 2025 – Are You Ready!
A new Aged Care Act will commence from 1 July 2025 containing the largest reforms to the system in more than a decade.
The current Residential Aged Care Fee system will be completely overhauled with the removal of the Means Tested Care Fee (MTCF) and the implementation of a Hotelling Fee (HF) and Non-Clinical Care Contribution (NCCC). The end result will be that an AVERAGE PART PENSIONER WILL PAY AN ADDITIONAL 25% – 30% IN ONGOING FEES PER DAY!
In addition, a retention fee will also be implemented reducing funds paid to the Aged Care Facility in the form of a Refundable Accommodation Deposit (RAD).
Here is an example of a single part pensioner who has elected to enter a Residential Aged Care Facility with a $500,000 Accommodation Payment which they elect to pay as a $350,000 Refundable Accommodation Deposit (Lump Sum payment) and the balance of $150,000 via Daily Accommodation Payments (DAP) (interest payments on the outstanding amount at a rate of 8.17%).
The Part Pensioner’s assets are as follows;
Fee Estimation Based on Part Pensioner’s Income and Assets Pre and Post 1 July 2025;
THE DIFFERENCE IN FEES EQUATES TO $41.94 PER DAY OR OVER $15,000 PER ANNUM!
Please contact us today to discuss bringing forward possible entry to Residential Aged Care to beat the 1 July 2025 deadline to substantially save on fees.