How a rule change could save aged care users thousands

After waiting about a month for an aged care assessment, and potentially another eight months or more for their Support at Home program funding to begin, it defies logic that one in three older Australians are stopping or reducing their home care.

Sadly, the co-contributions have been forcing some seniors to choose between the care they need and other essentials. But finally, there is some good news. From October 1, personal care (which includes help with showering, dressing and hygiene) attracts zero co-contribution. Regardless of your means, you will not have to pay anything towards these services.

Of course, you must be approved for personal care in your support plan, and the services will still draw on your available package funding, so it is not unlimited. But the savings could be substantial.

Let’s assume you need help to shower every second day. The median price for personal care under Support at Home is around $114 an hour, although prices vary between providers.

Assuming a one-hour visit, the service costs $114. If you were paying the highest co-contribution of 50 per cent, that meant paying $57 each time. Over an average week, that adds up to almost $200 out of pocket. Over a year, the saving is approximately $10,400.

When you are managing household bills, groceries and other living expenses, that is a meaningful amount of money. It can also mean, if you have been rationing personal care or relying on family members for assistance, you can access these services without worrying about the cost.

However, it’s important to realise that the change does not entitle you to more care. Eligibility requirements remain the same, and personal care must be included in your support plan. You also need to have sufficient package funding available to receive the service.

It’s a good time review your Support at Home plan. Check what you are paying, what you are receiving and whether your budget is working as hard as it can.

The change applies to personal care, not every service delivered at home. You will still be asked to contribute between 5 per cent and 50 per cent towards your independence services such as transport, carer respite and assistive technology.

Similarly, there has been no change to the contributions towards everyday living services such as cleaning, gardening and shopping which attract a co-contribution of between 17.5 per cent and 80 per cent based on your means.

The example above is using an average price – you will find that there is a wide range of prices depending on the provider and your location. Minimum shifts and service prices for evenings, weekends and public holidays can increase the cost, sometimes tripling it.

Your savings will depend on your circumstances, the price your provider charges and how often you receive care.

If cost has stopped you accessing personal care, speak to your provider about receiving these services. But remember, while it no longer attracts a co-contribution, it still uses your package funding, leaving less for other services.

It’s a good time review your Support at Home plan. Check what you are paying, what you are receiving and whether your budget is working as hard as it can. After all, getting good bang for your buck matters, even when the bucks are fewer.

Rachel Lane is the author of Downsizing Made Simple, a book and website aimed at demystifying downsizing.

• Advice given in this article is general in nature and not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.

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