1. Costs set by the Government (From 20 March 2023 to 19 September 2023)
A) The Maximum Basic Daily Care Fee (BDCF)
From 1/7/2019 Daughterly Care waived this cost, so the following information is for general information only.
The Consumer Directed Home Care Program requests seniors make a co-contribution to the funding of their in home aged care. Whilst it is called a “Maximum Basic Daily Care Fee” it is not “a fee” in the true sense of the word. It is actually a co-contribution and therefore increases your Home Care Package funding available to be spent on your care.
The Maximum Basic Daily Care Fee, or co-contribution, for a senior on a Level 4 HCP is currently $12.14 per day, per person, so $169.96 per fortnight, per person i.e. $4,431.10 pa pp as at 20/3/2023. This represents 17.5% of the single person basic age pension. (This rate increases on the 20th March and the 20th of September each year in line with changes to the Age Pension) source
B) Income-Tested Care Fee for Part-Pensioners and Self-Funded Seniors
If you are a Part-Pensioner or Self-Funded Senior i.e. you earn the income listed below or more, you are still eligible to receive a Home Care Package, however, the Government requires you to pay an Income Tested Care Fee towards your Government Funding. Whatever your Income Tested Care Fee is, the Government reduces their funding of your Home Care Package by that same amount.
Will you pay an Income Tested Care Fee for your Home Care Package? (Are you a Pensioner, Part Pensioner or Self-Funded?)
If you earn the below income or less, then you are a Pensioner and pay no Income Tested Care Fee towards your Home Care Package.
|Income Free Area (single person)
|Income Free Area (Couple, Illness separated, single rate)
|Income Free Area (Couple, Living together, single rate)
(relevant to Home Care only)
|Income Free Area (Couple, Living together, threshold for both)
(relevant to Home Care only)
What is included in your Income for the Purposes of Determining the level of the Income Tested Care Fee payable for your Home Care Package?
Income, for the purposes of in home aged care, is NOT the same as taxable income, it’s NOT even income received, because Financial Assets are DEEMED to earn a certain level of income.
Your assessed income includes:
- income from work
- income support payments from the Australian Government, such as the Age Pension, a Service Pension or an Income Support Supplement
- income from financial investments
- net income from rental properties
- War Widow(er)s Pension and some disability pensions
- net income from businesses, including farms
- superannuation and overseas pensions, income from income stream products such as annuities and allocated pensions
- family trust distributions or dividends from private company shares; and
- income from outside Australia.
If you have a partner, you will be asked to answer questions about your combined income. Your income will be assessed as half of your total combined income, regardless of whose name it is in.
Financial assets are deemed to be earning a set income and include bank accounts and other financial investments, like shares.
Money or assets that you (and/or your partner) have given away in the last 5 years, may be considered to earn you an income.
Deemed Income From Financial Assets
|The first $56,400 of your Financial Assets has a deemed rate of earnings of 0.25%
|Anything over $56,400 is deemed to earn income of 2.25%
|The first $93,600 of your combined financial assets has a deemed rate of earnings of 0.25%
|Anything over $93,600 is deemed to earn income of 2.25%
Learn more about Deemed Income from Financial Assets
Use the Fee Estimator to estimate your Income Tested Care Fee – maybe you are NOT Self-Funded for aged care cost purposes.
Tip: The Fee Estimator tells everyone who uses it that they will pay the Basic Daily Care Fee. Daughterly Care waived this fee from 1/7/2019, so ignore that.
However it is good to estimate your Income Tested Care Fee here is the link:
Remember, as it says at the bottom of the My Aged Care Fee Estimator, to get your actual Income Tested Care Fee payable towards your Home Care Package you need to get assessed by Centrelink. Alternatively, you can talk to a Financial Information Service (FIS) Officer who will give you information about the financial aspects of aged care. You call 132 300 and say ‘Financial Information Service’ when they ask why you are calling.