Moving into residential aged care

What is residential aged care?

When you are no longer able to live comfortably and safely in your own home, you may move into a residential aged care facility (RACF) where you have more support available.

The Australian Government may help pay for your accommodation in a RACF, depending on your income and assets.

Working out your needs and your RACF costs

We strongly suggest that you seek independent financial advice before you begin the process of going into aged care. Doing so could provide you with significant savings on your aged care fees. 

If you cannot find independent financial advice, a Financial Information Service (FIS) officer from Services Australia may be able to help you.

Assessing your care needs

To work out what kind of care you'll need, you should contact the My Aged Care Contact Centre on 1800 200 422 for an assessment.

You can also apply for an assessment online or on behalf of someone else by using the Apply for an Assessment online form as an alternative to calling the My Aged Care Contact Centre.

Assessing the fees you pay

Before you enter a RACF, you'll need to have your income and assets assessed. These assessments will help Services Australia figure out how much you can contribute to your care.

Your income will be assessed by DVA or Services Australia, depending on what payments you receive. You should contact us for your assessment if you are receiving one of the following:

• Service Pension
• Social Security Age Pension
• Income Support Supplement
• Disability Compensation Payment and you have qualifying service
• War Widow(er)'s Pension and you have qualifying service

You should also contact DVA if you are an Australian ex-prisoner of war or Victoria Cross recipient, because your basic daily fee and income-tested care fee will be waived.

In all other cases you should contact My Aged Care for your assessment.

How you can have your income and assets assessed by DVA

If you are a homeowner you can:

• complete and send us form SA457 if you haven't updated your income and asset details with us in the last 2 years
• contact us to update your income and asset details, then complete and send us form SA485
• complete and send us form SA485 if your details are up to date

If you are a non-homeowner and your income and asset details are up to date, you can contact us and ask for an automatic assessment.

This means we can perform your means test assessment based on information you have already provided, and you do not need to complete a form.

If you haven’t provided us with updated income and asset details in the last 2 years, you will need to do so before we can proceed with your assessment. You can do this when you contact us.

Alternatively, you can choose to fill in the SA486 form. When completed you will need to print the form and mail to us. You can use this form for all home care and residential care assessments.

What might affect the fees you pay

Some things that may count as income and assets include:

• lump sum accommodation payments to your RACF
• the capped value of your home if you haven't sold it and aren't renting it out
• the full value of your home if you have sold it
• income from renting out your home if you moved into RACF after 1 July 2014 and paid all your accommodation costs as a lump sum

We won’t count income from renting out your home if you moved into RACF after 1 January 2017 or moved in during 2016, and you are doing one of the following:

• paying a daily accommodation payment
• paying a daily accommodation contribution 
• paying an accommodation charge
• paying all, or part, of an accommodation bond by periodic payments

What fees to expect

Some costs you might be asked to pay for your aged care include:

• a basic daily care fee which all residents pay
• a means-tested fee if you have sufficient income and assets
• an accommodation payment which depends on your income and assets at the time of entry
• an additional service fee if you choose to pay for additional services, which go beyond the care and services your aged care home must provide
• an extra service fee if you opt for extra services

Some resources that may help you work out your aged care costs include:

• the fee estimator
• the Residential aged care fee scenarios.

You may also want to seek independent financial advice.

There are two caps that apply to your means tested RACF fees:

• an annual cap
• a lifetime cap

The annual and lifetime caps are indexed on 20 March and 20 September each year. Current rates are available on the My Aged Care website.

These caps do not apply if you entered care before 1 July 2014, and remain in care.

Your DVA cards and benefits in a RACF

Changes in your finances when you move into a RACF might have some effect on your income support payments.

If you have a Veteran Gold Card or a Veteran White Card, you may continue to get DVA services such as allied health and certain aids and appliances that the RACF does not provide, as long as there is no duplication. Aged care homes are funded by the Commonwealth Government to provide a client’s clinical and care needs. They are required to provide the allied health services, furnishings, aids and equipment necessary to meet the resident’s care, safety and comfort needs, including to accommodate the resident’s height or weight. Where a RACF is funded to provide an aid or appliance, it is expected to do so. DVA does not seek to duplicate these arrangements.  

You may still be able to have clinically required transport arranged and paid for by us. Your RACF may be able to book this for you.

Choosing your new home and moving in

When you're searching for the right RACF for you, you may want to consider using the My Aged Care Find a provider tool. You may also have a social worker to help you look for one if you are in hospital waiting for a vacancy.

You won't be able to live in a RACF temporarily to 'test it out', but you can most certainly visit facilities to see which one you like best. To find out about aged care homes and figure out if an aged care home is right for you, please visit the Aged Care Homes page on the My Aged Care website.

Once you've been assessed and you've chosen your home, you may be put on a waiting list if there are no vacancies. You should contact your chosen RACF occasionally to remind them you’re interested.

When a vacancy opens up, you'll be informed either by the RACF or your social worker. You may need to decide quickly if you want to move in.

Things you should know

• Ex-service organisations can come visit you in your RACF if you arrange it with them.
• If we don't have your current income and asset details, you may need to pay the maximum fees.
• If you leave care for more than 28 days without approved leave and then re-enter care, you will be assessed under the current rules.
• If you believe you will face financial hardship in paying your aged care costs, you can ask for financial hardship assistance from Services Australia.
• Aged care homes cannot ask you to pay any fees or deposits before you have moved in. If you've been asked to do so, please call the Aged Care Complaints Scheme on 1800 550 552.
• If you have a complaint about the quality of your care, you can contact the Aged Care Complaints Commissioner.
• You could save a significant amount on your aged care fees by getting independent financial advice before you begin the process. A Financial Information Service (FIS) officer from Services Australia may also be able to help you.