27 Feb 2022
Aged care options in Australia
While there are many wonderful things to plan for in your golden years (the long-awaited dream holiday, perhaps?), the prospect of entering aged care is probably not at the top of your list.
Alas, aging is a fact of life, and there may come a time when you need a little help with everyday tasks or are no longer able to live independently at home.
The aged care system in Australia can be complex and it can pay to plan ahead and understand your options before you, or a loved one, need to enter care.
There’ll be a lot to consider and some big decisions to be made. To help you get started, here we introduce the government-subsidised aged care system and cover some of the things you’ll need to think about and plan for.
Types of aged care
When it comes to aged care, nursing homes are probably the first thing many of us picture. While this is certainly one type of available care, it’s not the only one and it’s not even the most commonly accessed.
There are actually three government-subsidised aged care options available in Australia; help at home, short-term care and aged care homes.
1. Help at home
Staying in your own home for as long as possible is a priority for many older Australians. In fact, almost two-thirds of all aged care recipients access basic support at home. [1]
Help at home services can allow you to live independently at home for longer. The type of help you’ll receive will depend on your individual needs and could include things like help with household chores and meals, personal care, access to health services, or modifications to your home.
2. Short-term care
Short-term care options provide support for a set period of time. There are three types of short-term care available:
- Restorative care - to help you adapt to changing needs or restore your independence.
- After hospital transition care – if you need help getting back on your feet after a hospital stay.
- Respite care – support to give you or your carer a break. This could either be a centre-based respite or via a paid carer coming into your home.
3. Aged care homes
Aged care homes, also known as nursing homes or residential care, provide accommodation as well as clinical care, help with everyday tasks, and personal care.
All government-subsidised facilities must meet minimum care standards required by law. Some may offer additional benefits and services (possibly at an additional cost), so you’ll need to check with individual providers to see what they offer.
What about retirements villages and independent living facilities?
Retirement villages are an option if you don’t need the higher level of care offered by aged care homes. They are generally open to over-55’s who are able to live independently in their own home.
The services offered will vary between providers but usually include things like community facilities and spaces, social events, and ground maintenance. Retirement villages don’t provide personal care or medical services to residents.
These villages do not form part of the Federal Government’s care system and are not government-subsidised, so you will need to pay the full cost yourself.
Eligibility and costs
Eligibility for government-subsidised aged care services is based on need. Your eligibility for services will be assessed by a government-appointed assessment team. This involves a trained assessor visiting you at home and working with you to identify what services might suit you best.
If you’re not eligible for government-subsidised care, there are non-government supported care options you might consider.
The cost of subsidised care options will depend on the level of care required and the provider you choose. Some types of care are also subject to means-testing. This means you’ll be asked to contribute to the cost of your care based on your level of assets and income.
For more information on eligibility and costs, and how they may apply to your situation, visit the My Aged Care website, or speak to a Financial Adviser who specialises in aged care planning.
Planning ahead and getting help
Just as you planned and prepared for other events in your life, you’ll need to make sure you are prepared financially for the costs and other financial implications of entering aged care.
A discussion with a qualified Financial Adviser can help you understand your options and the factors that may affect your decisions. Whether aged care is a little way off or a more immediate need, an adviser can help you with:
- How you might pay for any upfront costs of care
- Ways to structure capital or investments to best fund ongoing costs
- What to do with your existing home if you need to move into a residential facility
- Tax implications
- How any Centrelink entitlements might be affected
If you have any questions or your personal circumstances have changed please do not hesitate to contact your financial adviser.
Any advice included in this article has been prepared without taking into account your objectives, financial situation or needs. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation or needs.
