Aged care services can come at a steep price. It is no wonder many older Australians or their children consider selling or renting out their family homes to pay for care when planning to move into trustworthy aged care facilities in Australia.
The property value plays a key role in the income and assets assessment conducted by authorised government bodies, such as the ACAT. This formal assessment determines if you need to pay the means-tested care fee and accommodation fee, how much you need to pay, and until when.
In Australia, you will be asked to pay a bit more if it is determined that you are financially capable of doing so. What one can afford is determined by the individual’s assessed income and assets. So, if you are getting aged care Hampton or palliative care Townsville has to offer, for example, your home is counted as an asset, except under the following circumstances:
- Your spouse or children (dependent) use the family home as their residence
- You have a carer living in the family home for at least two years who are eligible under the Australian Government income support payment.
- You have a relative living in the family home for at least five years who are eligible under the Australian Government income support payment.
- Your home’s value is capped at $166,707.20. If the fair market value (FMV) of your home exceeds $166,707.20, it will be listed as an asset at this amount. If the FMV is lower than the cap, the entire FMV amount is included in your assessment.
If you are entering an aged care residence, like Arcare residential care, as a couple, you are considered co-owners of your combined assets and income. The home value cap applies to each of you. Check it out at Arcare
Most who are shopping for trustworthy aged care facilities in Australia consider selling their family homes to pay for the lump-sum amount (Refundable Accommodation Deposit or RAD).
But there is an option to pay in smaller instalments, otherwise known as the Daily Accommodation Payment or DAP. Because of this option, some decide to convert their family home into a rental and use the income to pay for the DAP.