Means Tested Care Fee
The Means Tested Care Fee is a contribution that are resident makes, towards the cost of your residential care services provided by the Australian Government. It's calculated based on an individual's financial situation, including income and assets assessment.
Upon entering residential aged care, the government conducts a means test to assess your financial situation. This assessment considers factors such as income, assets, investments, and real estate. The outcome determines if you're required to pay the Means Tested Care Fee and how much.
The Australian Government sets a maximum fee cap for the Means Tested Care Fee. The actual amount you pay is based on your assessment, but it can't exceed this cap. Individuals with lower income and fewer assets might not have to pay this fee at all.
It's important to note that your financial situation might change over time. Consequently, the Means Tested Care Fee will be reassessed periodically to reflect any alterations in your circumstances.
Not everyone receiving residential aged care is required to pay the Means Tested Care Fee. Factors such as income, assets, and other financial considerations determine eligibility.
Some individuals might be exempt from paying this fee based on specific circumstances or financial thresholds. These exemptions are based on various criteria, including income levels and assets.
Considering the financial implications of the Means Tested Care Fee is vital for effective financial planning. Seeking professional advice can help in managing expenses and optimising benefits.