@JohnK
Aged care is subsidised on a mean tested basis by the Australian Govt
The costs of Aged Care
Basic daily fee: covering meals, cleaning, facility management and laundry. This amount is capped at 85% of the single old aged pension. Everyone pays this.
Means tested fee: this is the fee fof personal and nursing care. This is mean tested - so only some people pay it and the amount depends on the Means Assessment. It could be $0 up to max $406.39/day. Regardless of the amount payable, there is an annual cap of $34,311 per year and a lifetime cap of $82,347
Accomodation costs: Everyone entering aged care has to agree to the price of the accomodation. However, the actual amount payable depends on the Means Assessment. The amount payable might be 100%, part % or 0%.
Additional services fees: This is the discretionary /luxury side of aged care. Some providers promote additional services as part of their package and some are mandatory. This is not subsidised by the Government
There are 3 ways to pay the accomodation cost:
(a) a refundable accomodation deposit (RAD) which the aged care facility takes and invests and uses the proceeds to pay for (b). Any balance remaining upon leaving the facility is refunded. The RAD can be a % up to 100% of the Accomodation costs. Effectively a RAD is an interest free loan to the aged care provider.
(b) non refundable daily payments (DAP). If the RAD is not 100% of the accomodation costs then a non refundable daily payment is payable which is based on the annual interest income of a RAD. DAP = (Accomodation cost - RAD paid) x MPIR /365.
The current maximum permissible interest rate
MPIR is 8.17%
Current RAD in Sydney are approaching $0.8-1M depending on location, facilty, private ensuite etc
(c) Government subsidy - pay directly to accomodation provider. Depending on Means Assessment there may still be a daily accomodation contribution (DAC)
Government subsidy of the Accomodation costs:
it all depends on the means Assessment
In summary
(a) Income less than 33849 AND assets below $61500 the Aus Govt pays 100% of the accomodation costs
(b) Income above $84656 OR assts above $206663 the Australian Govt pays 0% of the accomodation costs
The above are indexed
Means assessments
The assessment includes income and assets and includes part of the family home
Up to $206663 of the value of a family home is included in the Means Assessment
However this amount is not included if a protected person still lives in the family home - eg spouse or other dependant or close relative receiving Australian income support payment
So while your mother continues to live in the family home, the family home is NOT included in the Means assessment
Here is a
Residential Aged care cost of Care calculation sheet from Services Australia that goes through the whole means assessment process. The process is very detailed.