Money: how to make the most of home care

Changes to home care assistance mean that more seniors can stay in their own homes in their twilight years, says Money magazine founding editor Pam Walkley.

Staying put is what most of us want to do in our later years. To live in our own home, in familiar surroundings and near friends, is what 83 per cent of people over 60 said they wanted, according to a Productivity Commission report, Housing Decisions of Older Australians, released in late 2015.

And the good news is the government has significantly improved home care assistance schemes to enable older Australians to maintain their at-home independence. It’s a win for the ageing population, but it’s also a win for the government as it’s cheaper to provide care for people in their homes rather than in facilities such as nursing homes and hospitals.

The overhaul offers more choice and is also expected to deliver better value for money because the funding is more transparent. From February this year, the government started subsidising home care directly to seniors instead of making bulk payments to service providers, some of which were paying themselves up to 40 per cent of the money in fees. More than one million Australians receive home care packages already, and another 30,000 are expected to be rolled out this year. There are four levels of packages, with the highest level offering up to $48,184 a year. So how do you find out if you or a loved one is eligible for a share?

Start with the government’s My Aged Care (myagedcare. gov.au). When you call (1800 200 422), you will be asked questions to assess your needs. If you are eligible, you will be referred to an aged care assessment team (ACAT or ACAS in Victoria), who will identify if you have high or low level needs and whether you are eligible to receive government-subsidised services. These services include help with meals, medication, showering and getting to and from medical appointments or social events.

With the recent changes, you will be able to distribute a set amount of money directly to the provider (or providers) of your choice, as long as they are accredited. Savvy users will be able to avoid providers with high fees and afford more home care for their money.

The new rules put older Australians – or their representatives – in the box seat to make the key decisions regarding their care. It also gives them the power to walk away and take their home care package with them.

Your service provider should discuss your specific needs with you and give you a monthly income and expenses statement so you know how the funds are being spent. (See How To Get The Best Deal, below.)

Exactly how much you will receive from the government depends on your circumstances and income. Full pensioners only pay the basic daily fee, currently $9.97 per day. If you have a higher income, you will pay a means-tested care fee plus the basic daily fee. The incometested care fee is calculated at 50c per dollar of income above $25,792 a year for a single and $20,025 for each member of a couple. The fee is capped at $5208 a year for part-pensioners and $10,416 a year for selffunded retirees, with a lifetime cap of $62,499.

Savvy users will be able to avoid providers with high fees and afford more home care.