Aged care reform and what it means

From July 1 a series of reforms will come into effect, aiming to make aged care more simple. However, some of these changes may result in unintended complexity or confusion.

One issue involves bonds.

Currently aged care residents can negotiate their own bond levels. Paying a higher bond means residents can access higher-quality facilities, guarantee placements, increase the level of means-tested pensions or reduce the daily fees.

However, from July 1 all nursing homes must advertise their maximum bond, therefore negotiating a higher bond will not be possible.

Additionally, facilities are currently classified as either low or high care. A lump sum bond is generally required for a low-care facility but there is no bond payable if you are accessing a place in a high-care facility, as an accommodation charge is required instead.

However, this distinction will be removed, meaning there will be a bond payable unless residents meet the criteria for exemption.

The last thing most families need is the surprise of extra costs. So it is important to ensure you understand exactly what you need to pay and what entitlements may be available. A detailed white paper titled De-mystifying Nursing Home Bonds can be accessed by contacting Centric Wealth on (02) 9250 6500.

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