Aged Care in Australia is changing.
The government is making reforms to improve the safety, security and quality of aged care in Australia.
Choice? Calculated Decision? Guess?....... there is a lot riding on which way you go !
The government reforms will make it easier for you to understand, access care and support for aging parents when their time comes to enter into Aged Care facilities. These reforms will give families greater choice in determining what and how the care needs are provided. For instance, the parent/s may wish to stay in their own home for as long as possible and, if that is the case, there are now packages that will allow them to do so. How we pay for the cost of aged care has also changed and the reforms ensure that the contributions paid for care are fair and are based on the costs to deliver that care. However, as a consequence of the reforms, specialist advice is required in assisting clients with the transition of parent/s into aged care facilities.
- The cost of age care accommodation is increasing;
- around 50% of Aged Care residents have dementia;
- Dementia is one of the leading reasons why residents are moving into age care;
- 30% of people over age 80 have some sort of cognitive impairment;
- The average stay in care can be shorter, due to the fact that residents are going in later at advanced stages;
- Residents are more likely to move into care between 80-85 years of age.
So what are the options for families when dealing with an aging parent/s? Below outlines the care options available:
Living and Care Options
The cost of residential care (post 1 July 2014)
The only other fee payable is the Additional Services Fee. This is an optional fee and pays for ‘luxuries’ set by the provider.
Once you have received the ACAT assessment and decided upon the facility you wish your parent to enter, now is the time for strategy planning. As part of the ACAT assessment you will be handed Centrelink forms to complete, namely the SA457. This is an important form to get right! How you decide to answer these questions will ultimately determine what options you have to pay for the RAD.
- What is the accommodation payment?
- What are the payment options available?
- Is the resident determined to be low means?
- Can they afford the chosen facility?
- Should the home be kept or sold if they have one? What are the preferences of the parent/family?
- Calculate the means tested fee that will be payable by the parent.
- Will the facility negotiate its fees?
- How will the method of payment impact upon cash flow?
I find it is worth the time to discuss with aging parents what their wishes are and how they would like to live out their life. If you have any questions, please do not hesitate to call or email me email@example.com. I am more than happy to have a chat about your personal circumstances.
This information was prepared as at February 2015. This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should before acting on this information consider its appropriateness, having regard to your objectives, financial situation and needs. Securitor financial advisers are representatives of Securitor Financial Group Ltd ABN 48 009 189 495 AFSL 240687.
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