As we approach July 1st, it’s vital that you understand the upcoming changes to aged care fees and how that may affect you and your family. As our loved ones age, these reforms have become increasingly important, but you don’t have to be worried.
Many of these changes are designed to make the new rules easier to understand. Likewise, they should also help your fees better reflect your personal circumstances.
In this article, we’ll detail each of the core changes so that you and your family are prepared for July, as well as how they may affect your Canberra podiatrist costs.
To learn more about how these changes may affect podiatry care, contact our team at CBR Podiatry today.
Changing Care Fees
Residential care fees changing are just one major reform that is coming up. Here, we’ll break down each of the new changes into a few categories.
1. Accommodation Payments
As Australians enter aged care, they are required to pay a lump sum or a non-refundable daily payment. Sometimes, depending on their circumstances, they may pay a mixture of both.
With the new changes, aged care facilities will be required to retain 2% of the lump sums per annum. The retention is then calculated daily and deducted monthly for up to 5 years.
On the other hand, daily payments will be indexed twice a year. This will be determined by the outstanding lump sum and maximum permissible interest rate. However, this will not be indexed for low-income residents.
With these changes, residential facilities will have a more stable income, allowing them to provide important services. Likewise, families and loved ones will be able to make more informed decisions, while those of lower income are protected.
2. Ongoing Care Fees
Residential facilities often provide a range of basic daily services, including meals, laundry, cleaning, and care. These services are usually paid for with a standard daily fee.
In addition to this fee, you will also have to begin paying a Hotelling Supplement Contribution (HSC) fee to cover other non-medical services. This fee is calculated on your assets and income, but will have a daily cap of $12.55.
Likewise, you may currently pay a means-tested care fee to cover your medical or personal care fees. With the July 1st changes, this means-tested fee will be replaced with a new Non-Clinical Care Contribution (NCCC) fee. This is to help you receive additional non-medical related care.
This fee will also be based on your income, with a daily cap of just over $100. Further, you will no longer need to pay these fees once you have been in care for at least four years or have paid $130,000.
How Do These Changes Help You?
While you may be concerned about paying additional fees, these changes are designed to simplify the rules, making care more affordable for more people. By basing these fees on individual income and circumstances, people with lower means should be better able to afford real care.
Likewise, with the new lifetime caps, people will no longer have to worry about indefinite fees affecting their lives. This may not only improve loved ones and their families’ peace of mind, but also offer substantial financial relief.
What About Clinical Costs?
Despite these changes, clinical care will still remain a fully government-funded service. This means that if you require health interventions and have other clinical care needs, the federal government will still cover your costs.
With this support, you should not have to worry about gap fees or top-up payments. By continuing this key service, people living in aged care may be able to better preserve their health and quality of life.
Care Fees and Podiatry
But what does all this mean for podiatry aged care fees? With the new reforms, you should be able to cover most, if not all, of your podiatry costs.
For many, podiatry is considered needed clinical care. In which case, it will be completely covered by the federal government. If you’re unsure, consult a podiatrist Canberra to discuss your concerns.
Furthermore, although not expected until July 2026, future price caps may be implemented. The Independent Health and Aged Care Pricing Authority is aiming to collect and analyse information on pricing throughout 2025 to inform future costs.
This may make it easier for those in need to access care at an affordable rate.
Reach Out to Your Trusted Local Clinic
Are you searching for a local podiatrist that you can rely on? At CBR Podiatry Canberra, we have years of experience supporting people with different care needs from different circumstances.
If you’re concerned about how these reforms will affect your care with us, reach out to our team today. We are always happy to discuss your needs and concerns whenever you need to.
