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Many self-funded retirees believe they are not eligible for a Home Care Package, but could they missing out? If you’re a self-funded retiree and have care needs, you could be eligible for a Home Care Package, and while you may not initially receive a financial benefit you will be contributing to the future of your care. Read on to discover how a Home Care Package can help your care and financial future.
Everyone wants to live independently in their own home and on their own terms for as long as they can. Home care services, such as assistance with household chores, meal preparation, showering, dressing, transport and medication support, are just some of the ways that allow older people to remain safely at home. The government-funded Home Care Package makes these services very affordable for those who are eligible. As a self-funded retiree, you could be eligible for a Home Care Package and there are plenty of benefits that may not be initially obvious.
The benefits of a Home Care Package as a self-funded retiree include:
The Home Care Package program is a government-funded scheme that allows older Australians to receive care services at home. There are four levels of funding dependant on your care needs.
The range of services available are wide and varied including domestic assistance, transport, personal care, medication management and meal preparation. There are also surprising things you might not have considered, such as pet care, social outings, allied health, mobility equipment, art therapy and more.
Eligibility for a Home Care Package is based on your care needs as determined through an assessment by the Aged Care Assessment Team through My Aged Care.
The first important eligibility criteria to apply for an assessment is that you’re a person aged 65 or over (or 50 and over for First Nations people) who needs coordinated services to help them stay at home.
It’s important to note that your financial situation won’t affect your eligibility. However, if you’re a self-funded retiree or receive a part-pension you will need an income assessment through Services Australia to determine how much you will be required to contribute. Depending on your situation and the level of Home Care Package you are allocated, you may have contribute fees. Once you are allocated a Home Care Package, you won’t be required to pay any fees until you sign with a home care provider and start receiving services.
If you’re a self-funded retiree, you will have an income tested care fee that is calculated by Services Australia. This fee will reduce the subsidy the government contributes towards your Home Care Package. The amount will be determined by your personal financial situation, but My Aged Care provide an online tool where you can find out an estimate of what this fee might be.
The income tested fee has an annual cap that is calculated daily. The annual cap amounts change with indexation on 20 March and 20 September each year.
In some instances, the fee may outweigh the government subsidy, especially if your care needs are low and you are allocated a Level 1 package. However, as the fee is capped, someone requiring more care services and allocated a Level 3 or Level 4 package will receive a sizeable government subsidy.
Yet, while you may not receive a subsidy, it may still be beneficial to be allocated a Level 1 package, as your contributions will count towards your lifetime income tested fee cap (see Lifetime income test fee cap below). This means as your care journey continues you will start to see financial benefits sooner.
In the table below we have an example of what the fees and benefits of each level of Home Care Package (HCP) would be for a single person with annual income of $75,000 and assets valued at $1million.
There is a lifetime cap that applies to the income tested care fee for home care services. Once you reach a cap, you cannot be asked to pay any more in income tested care fees.
As with the annual cap, the lifetime cap amount changes with indexation on 20 March and 20 September each year. Currently, once you spend $79,942.44 in income tested care fees during your lifetime, you will no longer have to pay anymore fees.
Any income tested care fees you pay while receiving a Home Care Package will also count towards the annual and lifetime care fee caps if you move into a residential aged care facility or RetireAustralia Care Hub.
If you are finding daily tasks increasingly difficult, home care could be the right option for you. The first step is register for an assessment with My Aged Care. This can be done online or by calling My Aged Care on 1800 200 422.
If you live in a RetireAustralia community, our Home Care team would be happy to help you navigate the My Aged Care assessment process. Your Village Manger or on-site Home Care team member can direct you to the next steps.
If you’re not eligible for a Home Care Package, but would still like to receive home care services, they are available on a fee-for-service basis.
RetireAustralia owns and operates retirement villages in 29 unique urban, seaside, tree-side and regional locations.
