Are respite care costs the same as long-term care costs?

No, if youre accessing respite care, you will only be required to pay the basic daily care fee and any additional living costs including our EstiaPlus fee for additional services provided over the standard services already available. You will still need to complete a respite resident agreement.

Can I move into an Estia Health home without a means assessment?

Yes, you dont need to wait for your means assessment to be completed to move into our homes. Contact our client relations team on 1300 682 833, who will support you in determining interim fees while you wait for the outcome of the assessment, which can take anywhere from two to six weeks.

Do fees change over time once I'm a resident?

Fees can change for a number of reasons:• If your income or assets change, then your means-tested care fee and accommodation contribution can change• If you have a change in your personal circumstances: for example if a protected person moves out of your family home then your means-tested care fee and accommodation contribution can change• If your care needs change, for example if the clinical care you require increases and your means assessment shows that you can contribute more, your means-tested care fee may go up

What happens to my Refundable Accommodation Deposit (RAD) when I leave aged care?

The RAD will be fully refunded to you or your estate, less any amounts that he/she has agreed to draw from it to pay other aged care fees.

What do I do if I have already completed means assessment?

Following the assessment, you would have received a fee advice letter and this is valid for 120 days unless theres a significant change in your circumstances, you can still use this.

I’m a Veteran, do the same fees and costs apply?

As an Australian Veteran, the Department of Veteran Affairs (DVA) will support you in completing your means test and income and assets assessment to ensure all information is correct and up to date before you contact My Aged Care. They can also support you with accessing short-stay respite care. The DVA only provide low care needs, with residential aged care provided by the Australian Government.

Who is a protected person?

When referring to aged care, a protected person is:• A partner or dependent child• A carer who is eligible to receive an Australian Government income support payment and who has lived in your home with you for the past two years• A close relative who is eligible to receive an Australian Government income support payment and who has lived in your home with you for the past five years• If your family home is occupied by a protected person when you move into an aged care home, it may not have been counted as an financial asset in the means assessment.

Should I appoint a representative?

If you, or a loved one, need or are receiving aged care services, it can be helpful and sometimes necessary to have a representative. This is someone you appoint to speak and act on your behalf. They can register on My Aged Care on your behalf and complete the necessary paperwork. This can be a family member, friend, carer or advocate, like the Older Persons Advisory Network (OPAN).;

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Aged Care Costs

We’re here to help guide you through the different costs when moving into one of our residential aged care homes

How much will residential aged care cost?

Moving into a residential aged care home is a big decision and it’s important to have an understanding of the different fees and charges you may need to pay. This is dependent on the aged care home you choose, the level of care you need, the services available and your individual ability to pay for these.

Services Australia (formerly The Department of Human Services) assesses and determines your financial circumstances and your ability to pay for your required aged care services.

We recommend seeking independent financial advice when you start looking to move into a residential aged care home to understand your situation and the best payment option for you.

If you’re looking for other aged care services such as home care support, you can visit My Aged Care.

Aged care costs can be broken down into three areas

Care

Care costs relate to clinical care you will receive while living in an aged care home and can be partially or fully funded by the government.

The costs will depend on the level of care you need (determined by a care assessment), and your ability to contribute to the cost (determined by a means assessment).

If you’re required to contribute to care costs, it’s called a means-tested care fee and it is a daily fee.

If required to contribute to this, it’s a daily fee.

Accommodation

Accommodation costs depend on the specific home and room you choose. The amount you contribute towards accommodation costs is assessed by Services Australia following a means assessment.

Depending on your means assessment, if you are required to pay for your accommodation in full or contribute to the cost, there are several options available.

Living

Living costs are for a range of services you can access once you’re living in a home. These include all day-to-day services like meals, laundry, cleaning and lifestyle activities and a set of additional services, called EstiaPlus which our homes offer.

Everyone pays the basic daily fee, which is set at 85 percent of the single person rate of the basic aged pension and any other fees the home charges. Additional services are charged as an additional daily fee.

Residential aged care costs are dependent on each person’s circumstances

If you are moving into an aged care home long-term, the fees you pay will be determined by your individual financial circumstances. This will be assessed by Services Australia by completing an Income and Assets assessment. Based on the outcome of this means assessment you may fit into one of these three indicative scenarios.

Scenario 1

My assets are below $51,000 and my income is below $28,000.

You're assessed as being of low means and eligible for full government support for your required care and accommodation.

You are likely to pay:

• The basic daily fee: set by the government at 85 percent of the single person rate of the basic aged care pension
• EstiaPlus: additional living services

You are unlikely to pay:

Accommodation cost
A means-tested care fee

Scenario 2

My assets are between $51,000 and $173,000. My income is between $51,000 and $70,000.

You're assessed as having some means and are also eligible for partial government support for your required care and accommodation.

You are likely to pay:
• The basic daily care fee: set by the government at 85 percent of the single person rate of the basic aged care pension
• EstiaPlus: additional living services
• Accommodation contribution
• Means-tested care fee* : you may need to pay a small means-tested care fee depending on your means assessment. This fee is capped annually and the government will fund anything above this cap

The amount you’re required to contribute to your accommodation and means-tested care fee will be determined by Services Australia.

* Means-tested fee: this is regularly re-assessed by Services Australia and you may change if your financial circumstances change

Scenario 3

My assets are over $173,000 and my income is over and $70,000.

You are determined as having the means to pay for your accommodation and may have to contribute to the cost of your care as a self-funded person.

You are likely to pay:
• The basic daily fee: set by the government at 85 percent of the single person rate of the basic aged care pension
• EstiaPlus: additional living services
• Accommodation payment
• Means-tested care fee: you may need to pay this fee depending on your means assessment. This fee is capped annually and the government will fund anything above this cap.

The amount you’re required to contribute to your accommodation and means-tested care fee will be determined by Services Australia.

*Means-tested fee: this is regularly re-assessed by Services Australia and you may change if your financial circumstances change

Marjorie

Angelo

Requirement and eligibility to access aged care services

Angelo, 80, and his wife Maria, 78, are part-pensioners who live in their family home. Angelo has limited mobility and is finding it difficult to manage at home following a number of falls. He and Maria have made the difficult decision he should move into an aged care home, but they are both finding the process overwhelming, so their son Giovanni has offered to help and organises an assessment for his father. Angelo is approved for a funded place in an aged care home by an Aged Care Assessment Team (ACAT).

After receiving his ACAT approval letter Angelo, Maria and Giovanni look at a couple of Estia Health aged care homes in their local area and investigate the different costs involved.

Means to pay for residential aged care

Angelo’s on a means-tested government pension so Services Australia has his income, but as he and Maria own their own home, he needs to provide further information including the value of his home.

At this point, Giovanni suggests they speak to a financial planner to get advice on the best way to pay for Angelo’s aged care. With Giovanni’s help, Angelo completes the Services Australia's digital Aged Care Calculation of your cost of care form (SA486).

Their home is valued at $500,000 – however as Maria will continue to live in the home while Angelo moves into an aged care home, Maria is considered a ‘protected person’ occupying the house and therefore the house will not be included in the assessable asset.

As a couple, they have combined assets of $150,000 and a combined income of $70,000. As a married couple, half of Angelo and Maria’s combined income and assets belongs to Angelo and is considered in the assessment. Services Australia uses these figures to calculate Angelo’s means-tested amount to determine the level of support he’s eligible to have subsidised by the government. Angelo receives a fee advice letter detailing the fees he will need to pay to move into the aged care home.

Angelo’s means assessment determines he fits within the category of partially supported, which means the government will cover some of the costs but he will also need contribute towards them as well.

How much will Angelo pay for aged care?

Based on his current personal and financial circumstances Angelo is eligible to pay a basic daily fee and an accommodation contribution, alongside EstiaPlus, additional services being offered in the home. The means-tested care fee will be subsidised by the Australian Government.

He needs to decide how he will pay:

- A lump sum refundable accommodation contribution (RAC)
- A rental-style daily accommodation contribution (DAC)
- A combination of both

Again, at this stage, Angelo, Maria and Giovanni seek the advice of their financial planner to get their advice on the best way to pay the accommodation fees. If Maria ends up moving out of their home, then Angelo’s assets will be assessed again and it’s likely he may be required to contribute more towards the cost of his care.

Barbara and Trevor

Requirement and eligibility to access aged care services

Barbara and Trevor have been together for 50 years, having just celebrated their Golden Wedding anniversary when Trevor sadly suffers a severe stroke. Barbara was diagnosed with dementia three years previously and is beginning to struggle with daily tasks, including shopping and cleaning.

After reviewing the home care options available with her children, Barbara decided that Trevor would be best in an aged care home where he could access around-the-clock-care and rehabilitation and physiotherapy services. Following an aged care assessment arranged through My Aged Care, Trevor was approved for care in an aged care home.

A year later, Barbara was herself approved for residential aged care as her dementia has worsened. Barbara and Trevor’s children were very keen to find a room at the same home so that they could be together again and have regular visitors. When Barbara moved into the aged care home a year after Trevor, both their financial circumstances changed.

Means to pay for residential aged care

When Barbara moved out of the family home and into the same aged care home as Trevor, this affected the fees both she and Trevor were eligible to pay as their family home was no longer occupied by a protected person and deemed an asset during the means assessment.

Barbara and Trevor should seek financial advice to determine the best way to pay for their aged care costs. As a couple, each of their aged care payment methods may impact the other’s aged care fees and their age pensions. Barbara and Trevor have a combined annual income of $90,000, with combined assets valued at $130,000 and the home’s value is $700,000.

Barbara and her daughter complete Services Australia's digital Aged Care Calculation of your cost of care form (SA486). After assessing Barbara’s income and assets, Services Australia send a fee advice letter outlining the types of fees she is eligible to pay and the maximum fees she can be charged when she enters care.

Barbara is looking at a room valued at $450,000. She has the choice to pay this price as:

A lump sum refundable accommodation deposit (RAD): when she leaves the aged care home, the RAD will be fully refunded to Barbara or her estate, less any amounts that she has agreed to draw from it to pay other aged care fees.
A non-refundable daily accommodation payment (DAP): Barbara can choose to pay for her accommodation entirely by non-refundable daily payments.
A combination of the two: if Barbara decides to pay $100,000 of her accommodation cost as a RAC and the remainder as a DAC, her DAC will be calculated using her outstanding room price amount.

How much will Barbara pay for aged care?

Under her current financial circumstances Barbara is eligible to pay a basic daily fee, contribute to a means-tested care fee and the accommodation payment she agreed with her provider. She can pay this as a DAP of $49.80 per day, a RAD of $450,000, or any combination of DAP and RAD.

There are a number of things for them to consider when determining the best way to pay for their aged care costs, including:

- Whether or not to sell their family home
- Whether or not Barbara should pay a RAD

All case studies are indicative scenarios based on examples of a potential resident in an Estia Health home but not an actual resident. Scenarios are based on the current set fees by the Government at September 2021.

Some topics that might be helpful

How to assess assets and income Payment options Care eligibility, assessments and costs Living costs Aged care agreement Financial tools and resources

Frequently asked questions

Are respite care costs the same as long-term care costs?

No, if you’re accessing respite care, you will only be required to pay the basic daily care fee and any additional living costs including our EstiaPlus fee for additional services provided over the standard services already available. You will still need to complete a respite resident agreement.
Can I move into an Estia Health home without a means assessment?

Yes, you don’t need to wait for your means assessment to be completed to move into our homes. Contact our client relations team on 1300 682 833, who will support you in determining interim fees while you wait for the outcome of the assessment, which can take anywhere from two to six weeks.
Do fees change over time once I'm a resident?

Fees can change for a number of reasons:
• If your income or assets change, then your means-tested care fee and accommodation contribution can change
• If you have a change in your personal circumstances: for example if a protected person moves out of your family home then your means-tested care fee and accommodation contribution can change
• If your care needs change, for example if the clinical care you require increases and your means assessment shows that you can contribute more, your means-tested care fee may go up
What happens to my Refundable Accommodation Deposit (RAD) when I leave aged care?

The RAD will be fully refunded to you or your estate, less any amounts that he/she has agreed to draw from it to pay other aged care fees.
What do I do if I have already completed means assessment?

Following the assessment, you would have received a fee advice letter and this is valid for 120 days unless there’s a significant change in your circumstances, you can still use this.
I’m a Veteran, do the same fees and costs apply?

As an Australian Veteran, the Department of Veteran Affairs (DVA) will support you in completing your means test and income and assets assessment to ensure all information is correct and up to date before you contact My Aged Care. They can also support you with accessing short-stay respite care. The DVA only provide low care needs, with residential aged care provided by the Australian Government.
Who is a protected person?

When referring to aged care, a protected person is:
• A partner or dependent child
• A carer who is eligible to receive an Australian Government income support payment and who has lived in your home with you for the past two years
• A close relative who is eligible to receive an Australian Government income support payment and who has lived in your home with you for the past five years
• If your family home is occupied by a protected person when you move into an aged care home, it may not have been counted as an financial asset in the means assessment.
Should I appoint a representative?

If you, or a loved one, need or are receiving aged care services, it can be helpful and sometimes necessary to have a representative. This is someone you appoint to speak and act on your behalf. They can register on My Aged Care on your behalf and complete the necessary paperwork. This can be a family member, friend, carer or advocate, like the Older Person’s Advisory Network (OPAN).

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