117. aged care reforms p 1-10 prime care
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Aged Care Reforms p 1-10 (Prime Care)TRANSCRIPT
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DisclaimerTrustees
The information contained in this presentation is generalinformation only and should not be considered as financial advice.
Figures shown in this presentation do not account for specificobjectives, individual financial circumstances or needs.Professional advice should be sought before determining whataction is appropriate, as every client is different.
An adviser specialising in this field should be selected to giveappropriate advice.
Aged Care Fees Update
Aged Care Reforms1 July 2014
Anna LawtonSenior Manager, Aged Care Advice
[email protected] 4, 677 High St, PO Box 207, Kew East 3102 Ph: 1300 781586
Equity Trustees Limited ABN 46 004 031 298, Australian Financial Services Licence No 240975.
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Equity Trustees - Our Aged Care Services
Aged CareFinancial
SpecialistsPropertyService
Aged CarePlacement
Service EquityTrustees
Total CareServices
Our longevity, stability and investment framework are key reasons whyEquity Trustees has been trusted since 1888 to deliver our services to
generations of Australian families.
Q
Trustees
1. Current System2. Aged Care Reforms3. Fees and Charges Explained4. The Family Home - How it Counts5. Our Aged Care Service6. Next Steps
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Current System
Aged Care Assessment TeamsResidential Aged Care, Respite, Home Care PackagesFunded
Aged Care Client Record (ACCR) Details resident's needs and situation, illnesses, reason for need for
care
To determine financial situation - Aged Care Assets Assessment Determines supported status Not compulsory - we can help here
Current System
Accommodation BondDaily Care Fee
Income Tested Fee
Accommodation BondExtra Service Fee
Daily Care FeeIncome Tested Fee
Accommodation ChargeDaily Care Fee
Income Tested Fee
Accommodation Bond Retention $331 per mo.interest payable impaic
Daily Care Fee = $46.50 per day
Income Tested Fee based on assessable income
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Aged Care Reforms - Living Longer, Living Better
Residential Aged Care Assessment (no Low/High Care distinction)
Fees for Accommodation(Accommodation Payment): Fees for Care
Trustees
Refundable AccommodationDeposits (RADs)
Daily AccommodationPayments (DAPsj
Wo retention appliesAccom Charge no longer applicable
Daily Care Fee
Extra Service fee opt in/opt out
Tessas? ree
Fees and Charges Explained
.Refundable Accommodation Deposits (RADs)Based on price of the room
Cap of $550,000 unless approved for more
$45,000 rule less significant
Government guaranteed
Not considered an Asset for the PensionConsidered an Asset for the MEANS TESTED FEE
Trustees
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Fees and Charges Explained
How can Accom Payments; be paid?Lump sum (RAD)DAP - Interest at 6.63% pa (1-4-14)A combo28 days to decide how to pay
If assets are less than $45,000?No Accommodation Payment payable
If Partially SupportedAn Accommodation Contribution payable
Fees and Charges Explained
Care Fees contribute to the cost ofnursing care, meals, cleaning andlaundry services.
$46.50 per day Everyone pays this fee Rate increases 20 March & 20 September Represents 85% of basic Age Pension
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Fees and Charges Explained
Means Tested FeeCalculated by the Department of Health and Ageing withreference to data collected by Centrelink/DVA
Co-Contribution payable by those with means
Based on assessable income and assets
Maximum rate = annual cap $25,000 (2012 prices)lifetime cap $60,000
Fees and Charges Explained
Means Tested Fee (co-contribution) is based on Assets and Income RAD paid counts as an asset for this fee
Client Situation$400,000 Accom Bon$400,000 Accom Bon-
id/RAD + $100,000 CashAfter 1 July 2014
;MTF = $l3p/day;:
Capped ANNUALLY $25,000 not dailyLifetime Cap $60,000 (2012 prices)
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Fees and Charges ExplainedIrustccs
RADs will count as an Assetversus first $155K of a Principal Residence
Fees and Charges Explained
If Accommodation Payment is $400,000:
MTF $ 5,50 '
DAP $ _ . . . . _ .OOPS $12.00TOTAL = $109.17 = $39,850 p?
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Fees and Charges Explained
Extra Service Fee (ESF)No longer will be just for High Care Extra Service facilities
Range from $10 to $120 dayWill be mostly opt in/opt out
What do you get?Extra Service does not mean extra careChoice of wine with mealsEnsuite, single roomCable TV, podiatry, hairdressing, newspaper delivery etc.
The Family home - how this countsTrustees
The aged care assets test is different to the-peftsiefv-assejts test
When it doesn't count: a spouse or 'dependant' child still lives in it; a carer, living there two years+, eligible for income support,
such as a C/link or DVA pension, a close relative, living there five years+, eligible for incomesupport, such as a C/link or DVA pension.
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JOur Aged Care Services
Next Steps
We are specialists in this areaNo one situation will be simpleCall us with any queriesKnow which way to turn -
we are here to help Aged Care Facility Placement Aged Care Advice
Trustees
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Contact Us
Sally FenemorBusiness Liaison ManagerPrivate Wealth Services
Email: [email protected]: (03) 8623 5377
Website: www.eqt.com.au
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