Blog# 13 Fact#12 What are the current capped limits for aged care and what do they mean?

There are three Caps currently applying to Residential Aged Care (as of March 2021).  

·         Residential Home Exemption Cap

The Home Exemption Cap applies separately to both members of a couple. The net value of

the home above this amount is excluded from the resident’s assets. For example:

A recent appraisal from a real estate agent valued a couple’s home as $650,000. For residential

Aged Care Purposes the home would be capped at $175,239.20 (as of September 2021) Therefore

the amount above the cap will be excluded.

Home Value                                        $650,000.00

Home Exemption Cap                     $175,239.20

Excluded Amount                             $474,760.80

·         Cap on Means Tested Care Fees in Residential Care

Annual and Lifetime caps have been set to limit how much a person will need to pay in means tested care fees. The Annual Cap (as of September 2021) is $28,792.36 - Once a resident reaches the annual cap, they will no longer have to pay any means tested care fee until the next anniversary of the date they first entered the facility. Any care fees will be paid for by the government until this time.

Not everyone will have to pay a means-tested care fee. The exact amount a person pays is determined through a means assessment (both assets and income). The means tested fee care fee is an ongoing fee that is paid towards the cost of personal and clinical care. Personal care can include help with bathing, dressing, grooming, and going to the toilet. Clinical care can include services like specialised nursing services, medication assistance, or catheter care.

·         Annual and Lifetime Caps

There are annual and lifetime caps on means-tested care fees. Once a resident reaches the lifetime cap they will no longer have to pay any means tested care fees. The government will pay for care costs.

The maximum an aged care home can charge you is:

                $28,792.36 per year, or $69,101.75 in a lifetime (as of September 2021)

Additionally – if a person is moving from home care into an aged care facility, any previously income-tested care fee paid while receiving care at home will be counted towards the annual and lifetime caps.