Aged Care Reform

Complex changes to residential aged care come into operation on the 1st July 2014 – the changes will not generally affect existing residents in facilities at that time.  The proposed changes relate to four main areas:

  1. Reviewing the distinction between high and low care
  2. Changes to the levels of care and extra services
  3. Changes to the assessment of the principal home
  4. New means testing for residential care

Until the proposed changes are finalised we will be unsure of their specific effects.  For example, keeping the home and renting it may still be an effective strategy for some.  At present, it is anticipated that:

“asset rich, but income poor individuals may pay more care fees and asset poor, income rich individuals may pay more for their accommodation”.
Source: IOOF Technical Bulletin: Summer 2013

Key point: seek professional advice before 1 July 2014 if aged care accommodation may be likely after 1 July 2014, to help maximise your situation!