What are reductions?
A reduction is an amount that reduces the basic subsidy and primary supplements for home care.
The two types of reductions are the:
- care subsidy reduction
- compensation payment reduction.
Care subsidy reduction
The care subsidy reduction is the amount of the income-tested care fee.
An income-tested care fee may be payable if a person enters home care from 1 July 2014 and has income over a certain amount.
Services Australia calculates the maximum income-tested care fee based on an assessment of the person’s income.
What you need to do
You do not need to do anything. Services Australia will automatically deduct the income-tested care fee from the subsidy the Government pays you for that person.
Did you know?
Sometimes, the Government sets the care subsidy reduction for a person to zero. This means the income-tested care fee is set to zero, so you cannot collect the fee from that person. The Government will let you and the person know if this happens.
To find out more, go to:
- Section 48-8 – Care subsidy reduction taken to be zero in some circumstances in the Aged Care Act 1997
- Section 88 – People for whom care subsidy reduction is taken to be zero in the Subsidy Principles 2014.
Compensation payment reduction
A person can get an entitlement to compensation through a:
- reimbursement arrangement.
This may be for things like an injury in the workplace or from a car accident.
If the compensation covers some or all of the cost of their home care, a reduction applies. We will deduct the compensation amount from the subsidy we pay you on their behalf.
What you need to do
If a person is entering your care and has an entitlement to compensation, provide the details at question 12 when you complete the Aged Care Entry Record Form.
If a person is already in your care and gets an entitlement to compensation, contact Services Australia.
We (or Services Australia) will tell you and the compensation payer the amount of the reduction. You can invoice the compensation payer directly for the reduction amount.