Greater choice and control through consumer-directed careIn developing the Commonwealth Home Support Program, services being delivered in thehome were reviewed to gain a better understanding of what older Australians want and need.Services including meals on wheels, transport, home modifications and maintenance arelooked at to ensure they are being delivered in the most efficient way.–Different means testing arrangements for home care packagesFees paid for home care packages under the previous system were not consistently applied,unlike in residential care. A new means-tested care fee was introduced for some carerecipients on top of the existing basic fee. No full pensioner pays a care fee under the newarrangements, which applied from 1 July 2014. Some part-pensioners and non-pensioners payhigher total fees than were previously charged. People receiving a care package on30 June 2014 continue under their previous fee arrangement.The government requires some care recipients to contribute more to the cost of their carethrough an income-tested care fee, with safeguards for those who cannot afford to contribute.No care recipient pays more than the cost of their care and no care recipient’s home or other assetsare included in assessing their ability to pay. In addition, an annual cap of $5,617.47 (indexed)where income is below the ‘income threshold’ and $11,234.96 (indexed) where income is abovethe ‘income threshold’ is in place for the income-tested care fee. The income thresholds(20 March 2020) are:• $53,627.60 (singles)•$53,107.60 (couple, Illness-separated, single rate)•$41,017.60 (couple, living together, single rate).There is a lifetime cap of $67,409.85 (20 March 2020) (indexed) on care fees, so that no personpays more than this amount for home care packages or residential care during their lifetime.Since 27 February 2017, home care packages are assigned to the care recipient rather than thecare provider.•Improved access to respite care to help carers.•Improved residential aged care through:–building more residential care facilities–supporting the viability of services in regional, rural and remote areas–trialing consumer-directed care in residential aged care–different fee arrangements and the combining of the current income and assets tests:>entry fees to aged care facilities is payable by lump sum, periodic payment or a mixdepending on the applicant’s choice>any refundable accommodation deposit and family home is exempt by Centrelink undercertain conditions>the asset and income test for new residents is combined into a new means test,which effectively only assesses income above that received from the full age pension.For people with income above this threshold, the maximum means-tested contribution(20 March 2020) is:○50% of income above the threshold○17.5% of the value of assets between $50,500 and $171,535.20○1% of the value of assets between $171,535.20 and $413,605.60○2% of the value of assets above $413,605.60.
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Superannuation in Australia, Kaplan Higher Education
