Fee relief – temporary absence from residential care

Permanent aged care residents continue to have government subsidies paid on their behalf while they are in the hospital or for up to 52 days of social leave per year.

If people living in an aged care home are absent from care for longer periods, the government subsidies stop and residents may be required to pay the full cost of their care (up to $252 per day*) if they do not want to lose their place.

This has caused a dilemma for aged care residents and families who have decided to take older family members home during the COVID-19 pandemic – hoping this keeps them safer and to allow for better family interaction.

The government recently announced a new emergency leave provision for permanent residential care.

Residents who choose to temporarily live with family for the duration of the COVID-19 crisis will continue to have the normal government subsidies paid on their behalf, and won’t be deemed to have used their social leave entitlements.

This does not mean that all fees are waived during the period of absence.

To retain their place, the resident will still be required to pay their normal fees. This includes the basic daily care fee, the means-tested fee, additional services fees and accommodation payments. If residents do not wish to continue paying these fees, they will need to give up their place and be discharged from care. To return to residential care they will need to negotiate a new place and enter as a new resident.

The new leave is backdated to 1 April, so any residents who have been impacted will have additional fees refunded and their social leave limit restored.

*This information is a news alert and is only current at the date of publishing.