Alan Tickle, deputy mayor of MidCoast Council and managing director of Your Heritage Financial Planning, put forward a motion calling for the non-regulated “extra services fees” imposed by many aged care facilities to be on the national agenda at the 4 July Australian local government conference.
The motion, which received unanimous support from MidCoast councillors, calls for a review by the government on aged care facilities charging these non-regulated additional service fees, while also looking to draw attention to the complexity of the assessment of means tested fees and the conflicting method of assessment for aged pension.
Tickle said it is not uncommon for a person of low means within his local government area to be forced to pay the basic care fee of $61.96 per day plus an additional service fee of $25 per day, which he said exceeded the single rate pension and may result in financial hardship.
He added that these fees are on top of other potential fees, such as means tested fees and daily accommodation payments.
“I can understand why aged care facilities have had to cover increases in their operation costs and have resorted to applying compulsory non-regulated fees, but I can’t condone refusing to unpack those fees so that only additional services required are paid for,” Tickle said.
“For example, a person with dementia paying for pay TV when they can’t operate a remote control or have no interest in watching TV, I suggest is totally unacceptable.
“That is a common complaint I am hearing, and it is widespread.”
He added that there can be added confusion due to the differences in assessment between aged care and aged pension when it comes to the treatment of the family home.
“At a time when there is a shortage or rental accommodation, the current assessment of the family home does not encourage the home of a person entering aged care being offered for rental accommodation,” Tickle said.
“This is because the two-year asset exemption applied to a vacated home with respect to the aged pension and the lifetime asset value of $201,231.20 applied to the home for aged care means test, often means that leaving the home vacant, when there is no surviving spouse or carer in the home, can result in the retention of aged pension benefits and reduction in means tested aged care fees, rather than selling or renting the home and having the full asset value counted.”
He said he has also taken these issues up with local MP David Gillespie, as well as Senator Deborah O’Neill.
“I’m hopeful that a response from the Australian Local Government Association will add to the pressure on the Australian government for a review,” Tickle said.
Makes sense to everyone but won’t in Canberra
Legend