By Lesa Macpherson
There has been a lot of talk about the approaching changes to Aged Care.
The date for introduction of the adjustments is July 1. Essentially the changes are about creating a user pays regime.
Aged Care providers will be charging a fee of 2% of the cost of the Aged Care room, per year, up to 10% for 5 years or more. The fee is akin to an exit fee one commonly sees in a Retirement Village contract.
One important aspect of the change is that it relates to Aged Care Only.
In Aged Care you pay for your accommodation as a lump sum (a Refundable Accommodation Deposit or RAD), a daily payment (DAP), or a combination of both. Previously if a full RAD was paid, it would be fully refundable at the end. Now it will be subject to a deduction at the end of up to 10% of the initial purchase price.
We have found that some of our Elder Law clients (and their families) initially confuse Retirement Village Units, Manufactured Home Parks (commonly called Over 50s Resorts) and Aged Care, bundling them all under the term Retirement Living.
Don’t feel bad about being confused – it’s easily done. They all encompass housing, and various degrees of support. However, the legal aspects, how you pay, the level of care, and the lifestyle offered are very different.
It’s very important to note that these are all very different concepts. They each come under separate legislation, and accordingly the contracts are very, very different.
The costs paid, ingoing, ongoing, and outgoing, all vary according to the individual contracts applicable. They also vary from operator to operator.
It can’t be stressed enough that Financial Advice needs to be accessed. Make sure you choose to get advice from someone who knows about Elder Financial matters.
Due to the complex nature of the contracts, it is always wise to seek the Legal Advice of a Legal Professional who specialises in Elder Law, rather than a “GP” Lawyer.
Brisbane Elder Law are experts in Retirement Village, Manufactured Home Park, and Aged Care contracts. Call them on 1800328952 or visit www.brisbaneelderlaw.com.au
