Is your means tested care fee too high?

The means tested care fee, is another fee which has income and asset implications. The principal home if assessed, has a component assessed as an asset for the means tested fee. The aged care means test and the aged care homeownership exemptions are different from Centrelink’s/DVA means test and homeownership exemptions. Be careful, the means tested care fee can change significantly when you sell the principal home.

From 1 January 2016, residents who entered care in that year will have the rental income assessed from the home under the aged care means tests.

New aged care residents including those in receipt of the Age Pension will need to complete and lodge a Combined Income and Assets Assessment (SA457). This form is 28 pages long with 146 questions. Even self-funded retirees should carefully evaluate the implications of not filling this form in.

  • As a self-funded retiree, do you know the financial thresholds where it is no longer relevant to complete this form?
  • Do you know the payment thresholds of the annual and lifetime caps for the means tested care fee?
  • Do you know the daily fees that could be charged as a means non-disclosed resident?

If you do not receive Centrelink or DVA payment, then you need to advise the asset assessment team with Department of Human Services (DHS). The change in the means tested fee is activated quarterly. Lengthy delays to change the means tested care fee may create some angst. Dealing with DHS to transcribe any changes can be quite contentious – so be aware.

The Maze of Means Tested Care Fee Paperwork!

PrimeCare can help fill out all the forms and applications. Lodge your documents with DHS (The Department of Human Services). We follow up to make sure you’re not getting overcharged on this punitive fee and remove the stress you may be experiencing.

Call PrimeCare Financial Planning today for specialist Aged Care advice, on (03) 9006 1736