Costs for Aged Care for self-funded retirees is a little bit different than it is for pensioners. Self-funded retirees are expected to contribute to the cost of their Home Care Package via an Income Tested Fee. The Income Tested Fee determines how much you will need to pay. And in some cases it may be worth considering whether or not to decline a Home Care Package if it’s a lower level than what you have been Assessed for because of the Income Tested Fee.
Income Tested Care Fee
The Income Tested Care Fee is a fee that the government determines whether you pay or not. It is based on your Income not your assets and the way it is tested is through an Income Tested Care Fee Form.
Full pensioners are not required do not pay an Income Tested Care Fee and do not need to complete an Income Tested Care Fee Form.
Income Tested Care Fee Form
The government determines how much you need to contribute to the cost of your Home Care by conducting an Income Test via the Income Tested Care Fee Form. This form can be found on the My Aged Care website here. It’s usually quicker to complete the form and submit it at a Centrelink office than to put it in the mail. Full and part pensioners do not need to complete the form as the government already has their income information.
Home Care Package Administration Fee
In addition to the Income Tested Care Fee, you will be asked to pay an administration fee to the provider of your Home Care Package. The administration fee covers the costs of the administration of your Home Care Package by your Provider. Every Home Care Provider will charge a different Administration Fee along with many other fees and charges. You want to ensure all the fees and charges you are being asked to pay before you choose a Home Care Package Provider.
My Aged Care Fee Estimator
My Aged Care provides a fee estimator tool you can use to estimate your Income Tested Care Fee. Remember – full pensioners do not have to pay an Income Tested Care Fee and do not need to complete an Income Tested Care Fee form. You can find the fee estimator tool here. It’s a good idea to get advice if you are confused about how much you may need to pay. And remember, if you are a self-funded retiree, only the government can decide how much you may need to contribute to your Home Care Package.
Finding a quality Home Care provider
As a self-funded retiree, especially if you’re paying an ITF, it is incredibly important to find a quality provider with reasonable administration fees.
CareAbout can help! Have a chat to one of our expert Care Advisers on 1300 036 028