Federal Government spends up on aged care – but residents and families should prepare to pay more

Like many, we were disappointed this week by some of the aged care measures in the Federal Budget, particularly the announcement of just 20,000 new home care packages over the next four years.

These are unlikely to make a dent in the 104,000-plus waiting list, meaning many of those waiting for packages will need to dip into their own pockets to pay for their home care.

But there are other signs the Government is expecting consumers to pay more for their aged care.

Providers will now be charged to guarantee residents’ Refundable Accommodation Deposits (RADs), the ‘bond’ you pay to enter residential aged care.

Previously, the Government guaranteed this pool of funds. If these bonds have over $3 million in defaults in a single year, the Government will now pass the cost onto providers – who will likely pass some or all of this onto consumers.

More choices – but more money

The Government has also announced it would expand the Pension Loans Scheme – currently only available to part-pensioners – to allow full-rate pensioners and self-funded retirees who own their home to borrow against the equity in their home.

This means retirees would be able to boost their income by up to $17,800 without affecting their eligibility for the pension or other benefits – and again potentially fund their own care at home.

There’s also an extra $7 million being spent on the My Aged Care website to help consumers choose the right option – including a recommendation that we all have online checks of our skills, finances and health at the ages of 45 and again at 65.

The message is clear. The Government expects us to start preparing for aged care earlier – and be able to contribute to it.

It’s worth finding out now how you would foot the bill if you suddenly need extra help at home or go into an aged care home.

You can find more information about researching your options at agedcare101 here.