Financial Advice
The financial implications of receiving aged or community care must be fully considered before entering into a Care-Recipient Agreement.
Even though the Commonwealth Government heavily subsidises most of the services provided by Feros Care, in some instances bonds, charges and/or daily or sessional payments may be required depending on the service program.
But this does not mean that the care required is unaffordable.
There are a number of ways to reduce the costs of aged and community care, particularly in relation to Accommodation Bonds and Accommodation Charges. Here are some important things to consider:
- From 1 July 2005 accommodation bonds will no longer be considered ‘assets’ in Centrelink and Department of Veterans’ Affairs asset tests (see the Assets Assessment Form). This will mean that pensioners who elect to sell their home to pay a bond after entering residential may not suffer a pension reduction when the sale proceeds of their house plus their other assessable assets exceed the asset test threshold.
- You may be able to use the equity in your own home to off-set aged and community care costs.
- By paying a sufficiently large accommodation bond, part-pensioners may be able to increase their pension entitlement.
- Accommodation bonds are not ‘deemable assets’ so no income tested pension reduction or income-tested fee is assessed on bonds.
- Larger accommodation bonds can be made to assist in maintaining or increasing pension entitlements.
- Residential places are available for the financially disadvantaged who cannot afford an accommodation bond.
Feros Care is not able to offer financial advice or provide advice on an individual’s best economic option. However, we strongly recommended that potential care-recipients and carers contact an independent financial advisor.
Our Finance Manager is always available to assist you in this decision making process on (07) 5669 0555. A list of Financial Advisors who specialise in financial planning for retirement, residential aged care living and community care is also available from our Finance Manager.
