Latest Aged Care Financial Services News

Increased Maximum Interest Rates for Aged Care

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The Maximum Permissible Interest Rate (MPIR) applicable to accommodation prices and to refund periods for refundable deposit balances and accommodation bond balances increased to 6.22% from1 January (to 31 March 2016 when it will be reviewed again). Aged care facilities have updated their published rates to reflect this increase on their websites and in all written materials; room prices and payment options are also published on the governments My Aged Care website. At our Clarification Meetings, the adviser can discuss current payment options and examples that apply to different personal financial circumstances. Every year thousands of people pay more than…

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Removal of Rental Income Exemption for Aged Care Entry

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As previously announced, from 1 January 2016 the exemption relating to rental income from a resident’s former principal home has been removed. Previously, if a care recipient in residential aged care pays for some of their accommodation costs by periodic payments, rental income from the former principal home was exempt in the Aged Care Means Test. For residents who enter care on or after 1 January 2016, rental income will be treated in the same way as any other income for the Aged Care Means Test and this exemption no longer applies. Note that residents in care before 1 January…

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Another level of Government Autocracy – Where’s this Leading?

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Beth Hourigan overviews a new registration system If Government funded service providers (those facilities that get a government subsidy for their approved residents) are directly approached by people seeking aged care services, both residential and in-home services, they are now required to refer new clients to the government’s My Aged Care website for registration. It appears that is an additional bureaucratic step for filtering access to services and funding for aged care clients. Although service providers are being encouraged to action these referrals to ensure clients can access services quickly, under the current mountain of paperwork I can’t see how…

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