There are a number of fees and costs associated with residential aged care that are payable once you or a loved-one moves into aged care.
One such fee is the Means Tested Care fee. The Means Tested Care fee is payable in addition to the Basic Daily Care fee and any Daily Accommodation Payments or Additional Services Fees.
This article explains the Means-Tested Care fee and the relevant cap amounts.
In This Article
What is the Means-Tested Care Fee?
The Means-Tested Care fee is payable by residents who exceed certain investment income and asset thresholds. The purpose of the Means Tested Care fee is to reduce the burden on the government to fund aged care costs and, instead, have the costs further supplemented by the residents who can afford to cover more of their own costs.
However, regardless of a resident’s level of income and assets, there is an annual and lifetime limit, known as the Means Tested Care fee cap, on the amount that the government can ask a resident to pay as a Means-Tested Care fee.
Means-Tested Care Fee Cap
The Means-Tested Care fee cap is an indexed amount that signifies the maximum amount that a person residing in residential aged care can be asked to pay based on their level of financial means.
The following limits apply to the Means-Tested Care Fee:
- Daily Means-Tested Care Fee Cap
- Annual Means-Tested Care Fee Cap
- Lifetime Means-Tested Care Fee Cap
- Home Assessment Cap
Let’s take a look at each cap amount individually.
Daily Means-Tested Care Fee Cap
The daily Means-Tested Care fee cap is $416.05 per day as at March 2024. This is the maximum Means-Tested Care fee that a resident of an aged care facility can be asked to pay on a daily basis.
Annual Means-Tested Care Fee Cap
The annual Means-Tested Care fee cap is $33,309.29 per day as at March 2024. This is the maximum Means-Tested Care fee that a resident of an aged care facility can be asked to pay on a yearly basis.
If a resident pays this fee in less than a 12-month period, the fee will stop being charged until the beginning of the next 12-month period.
The 12-month period begins on the specific anniversary date of when the resident moved into care.
Lifetime Means-Tested Care Fee Cap
The lifetime Means-Tested Care fee cap is $79,942.44 per day as at March 2024. This is the maximum Means-Tested Care fee that a resident of an aged care facility can be asked to pay over the course of their lifetime.
If a resident reaches the lifetime Means-Tested Care fee cap while in care, the fee will cease and never be payable again.
As it is the aged care home that charges these fees directly to the resident, Services Australia will write to notify the aged care once a cap amount has been reached.
Home Assessment Cap
The former-home of a residential aged care resident is assessed for Means-Tested Care fee purposes. However, there is a cap on the amount that is assessed. The assessed home cap as of 20 March 2024 is $201,231.20. The value of the home that exceeds this amount is exempt from Means-Tested Care fee assessment.
Annual and lifetime cap amounts are indexed on the 20th of March and 20th of September each year.
Any amount contributed towards a Refundable Accommodation Deposit is fully-assessed for aged care Means-Tested Care fee purposes.
At CoreValue we will help you navigate the complexities of aged care and find the best financial solutions for your family. If you have any questions or concerns regarding your situation, please call us on 1300 944 011 to speak to an aged care expert.
Further Reading:
module=”2177″][/et_pb_section]
