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Fees and Charges

New basic daily fee arrangements from 20 September 2009

Information about increases to the age pension from 20 September 2009

On 20 September 2009, the age pension will be increased as a result of the 2009 Budget measure Secure and sustainable pensions. This measure includes a one-off significant increase to the pension and a change to indexation arrangements.

So that this pension increase flows on to both residents of aged care services and approved providers, the Aged Care Act 1997 was amended in June 2009. In general, the amendments allow for the following, from 20 September, 2009:

• Pensioners in aged care will benefit from the increased pension and have more money for incidental expenses.


• An additional $22.40 per week will flow to the residential aged care provider through the increased standard resident contribution (basic daily fee) as a result of the pension increase.


• A compensating aged care supplement will be paid to aged care providers for residents paying the phased rate of basic daily fee (see below).

Under the new arrangements from 20 September 2009, there are four different rates of standard resident contribution (basic daily fee):

Standard resident contribution
$36.94 per day

Protected resident contribution
$33.74 per day

Phased resident contribution
$33.74 per day

Non-standard resident contribution
$42.02 per day

Following 20 September 2009, the Department will write to each resident and/or their nominee,
advising them of their status and the rates which apply to them; and to all providers, advising them of the fees which apply for each of their residents.

Each resident’s basic daily fee will be determined according to their income and date of entry
as follows:

Standard resident contribution – will apply to most aged care residents, including full pensioners and some part-pensioners with lower amounts of private income.



Protected resident contribution – will apply to people in care on 19 September 2009 who did not get the benefit of a pension increase, including part pensioners with private income of $218 per fortnight above the income-free threshold, and self-funded retirees who were in permanent aged care on 19 September 2009.



Phased resident contribution – will apply to people who entered care on or after 20 September 2009 who did not get the benefit of a pension increase, including part pensioners with private income of $218 per fortnight above the income-free threshold, and self-funded retirees who entered care on or after 20 September 2009. This rate will increase to 78% of the basic age pension on 20 March 2010.



Non-standard resident contribution – will apply to certain people who entered care prior to 20 March 2008, including self-funded retirees who entered care before 20 March 2008; pensioners who have agreed to pay a big bond; or residents who have chosen not to disclose their financial information to Centrelink.

There are no changes to income tested fees, accommodation bonds or accommodation charges. However, under the new daily fee structure, different threshold amounts apply for each daily fee rate in residential care. Income tested fees are reviewed four times every year.

The pension increase will also result in a potential increase in some community care fees. For recipients of a Community Aged Care Package, Extended Aged Care at Home package or Extended Aged Care at Home–Dementia package who are on the maximum basic rate of pension, fees must not exceed 17.5 per cent of that pension. Recipients of packaged care on higher incomes may be asked to pay additional fees.

Revised residential care fees and charges for the September quarter will be available at www.health.gov.au/internet/main/publishing.nsf/Content/ageing-finance-resfees.htm

For more information contact the Aged Care Information Line, Ph 1800 500 853.