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Department of Social Services April 2014
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5 Bills passed in Parliament New Home Care Packages/Consumer Directed Care Four levels of Home Care Dementia and Veterans’ Supplements My Aged Care commenced operation Aged Care Pricing Commissioner Homeless Supplement Quality Agency Approval of accommodation payments approach
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2014 Accommodation prices to be published on My Aged Care Changes to fees and subsidies Removal of high/low distinction in residential care 2015 Increased functionality – My Aged Care Commonwealth Home Support Programme Consumer Directed Care (CDC) for all Home Care Packages Future aged care reforms
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1 July 2014 Income testing for home care 1 July 2015 All Home Care Packages convert to CDC basis
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New consumers from 1 July 2014 with the income to do so can be asked to pay an income tested care fee. Consumers will continue to pay a basic daily fee. The Government will reduce the amount of subsidy it pays based on the care recipient’s income tested fee. DHS will administer the income test.
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Government Subsidy Maximum Client contributions Current 84% 16% 84% equates to approx $1.2 billion and 16% equates to approx $0.2 billion, based on 2013/14 data. 76% 24% Future
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$3,420 (20%) Income of $24,346 Income of $30,000 Income of $50,000 Income of $70,000 Current $3,420 (20%) $13,644 (80%) Note: $3,420 is the max Basic Daily Fee. Not all recipients are asked to pay this. $13,644 (80%) Basic Fee Contribution Income Tested ContributionGovernment Subsidy New Clients Post 1 July 2014 $1,467 $5,000
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$10,000 annual cap $3,483 Part pensionersSelf-funded retireesFull pensioners $5,000 annual cap
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Full rate pensioners are not required to pay an income tested care fee Recipients’ homes or other assets not included Annual and lifetime caps Hardship provisions
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Dementia and Cognition Supplement; or Veterans’ Supplement At all levels of Home Care Packages Diagnosis of dementia not required Application forms are available on the Department of Human Services website
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19 May 2014 Providers must publish accommodation prices and information 1 July 2014 Removal of distinction between low/high level care Changes to means testing Accommodation payments Higher accommodation supplement for new or significantly refurbished facilities
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A basic daily fee Means tested fee Extra Services fee Accommodation Payments
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Means testing to include both income and assets Affects the amount the Commonwealth pays as subsidy Conducted by the Department of Human Services when a resident enters care Family home will continue to be exempt from the aged care assets test if occupied by a spouse or other protected person
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Government contribution Care recipient contribution Basic daily fee
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Low Means High Means Moderate Means Pays basic daily fee Pays Accommodation Payment (no supplement) Pays Means Tested Care Fee – care is partially subsidised Pays Basic daily fee Pays Accommodation Contribution (receives some Accommodation Supplement) Does not pay Means Tested Care Fee – care is fully subsidised Pays basic daily fee only Receives full Accommodation Supplement Does not pay Means Tested Care Fee – care is fully subsidised $154,179 $45,000 $24,731$62,944
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Refundable Accommodation Deposit (RAD), or Daily Accommodation Payment (DAP), or a combination of RAD and DAP 28 days after entry to decide on payment method
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Grandparenting for those already in care Annual and lifetime caps Hardship provisions Home not counted as asset or capped for means testing purposes
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Dementia and Severe Behaviours Supplement Veterans’ Supplement Both supplements can be paid On top of ACFI Applications required for the Dementia & Severe Behaviours Supplement No applications required for the Veterans’ Supplement
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Commences 1 July 2015 Combines under one programme: Commonwealth Home and Community Care Program National Respite for Carers Program Day Therapy Centres Assistance with Care and Housing for the Aged
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Ongoing updates available at: My Aged Care website (www.myagedcare.gov.au)www.myagedcare.gov.au www.dss.gov.au/agedcare
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