Too wealthy for home care subsidies?
In Australia, if you have a lot of money, you can’t get help paying for home care. That’s because the government only offers subsidies to people who are judged to be “assets test positive.”
Home care subsidies
Did you think you would not qualify for the government home care subsidies? Take another look – you might be surprised.
The cost of full-time private care provided in your own home may look daunting. But financial advice along with a government-subsidised home care package and support from friends and family might make home care achievable and affordable.
Each home care package comes with an assigned budget that you can choose how to spend on care services (after administration costs). Part of this budget is paid by the government and part is paid by the recipient.
But are you too wealthy to qualify for government home care subsidies?
Home care packages are income-tested. Any income-tested fee you are asked to pay reduces the government subsidy. There is no cut-off limit for eligibility to the government subsidies, instead, there is just an annual cap on the amount you might need to pay. This means no one is too wealthy to qualify for government subsidies, except possibly someone with a very high income who receives a Level 1 package.
The table below shows the government subsidy for each package level (effective from 1 July 2023):
| Home Care Package Level | Daily Government Subsidy Rate | Fortnightly government contribution |
|---|---|---|
| Level 1 | $28.14 | $393.96 |
| Level 2 | $49.49 | $692.86 |
| Level 3 | $107.70 | $1,507.8 |
| Level 4 | $163.27 | $2,285.78 |
The government’s contribution undergoes annual changes, specifically on July 1st. The following figures are current as of 1 July 2023.
If you meet the criteria for paying an income tested care fee, the government subsidy will be decreased by the corresponding amount.
The government payment is directly allocated to the home care provider of your choice. You collaborate with the provider to assess and determine the necessary care and services within the allocated budget. These funds do not impact your pension, as they are not considered as income.
Why the wealthy should not be eligible for home care subsidies
The fact of the matter is that home care subsidies should not be extended to those with great wealth. It’s important that resources are allocated to people who have the greatest need when it comes to home care. If home care subsidies were given exclusively to individuals and families in need, then more services could be administered and greater access to home care could be provided. Furthermore, there’s a certain fairness component when it comes to home care subsidies. There are plenty of things for which people of great wealth can buy with their money; home health services don’t need to be one of them.
How this affects the economy and society as a whole
It’s clear home care subsidies have a powerful impact on the economy and society as a whole. These subsidies provide caregivers with the resources they need to take care of those most vulnerable, while also providing jobs in an industry that sees continued growth every year across different sectors. By ensuring home care staff are well paid, we help to stimulate the economy and can help safeguard people who would otherwise struggle financially to receive care.
Furthermore, home care also keeps family members out of expensive nursing home facilities, which puts additional strain on both taxpayers and welfare programs. Society benefits too; helping those in need strengthens communities and provides a more cohesive network of support for anyone requiring home-based medical attention.
What can be done to improve the situation?
Improving the home care situation starts with understanding what it is and what’s needed. Home care is vital for those with disabilities or who are aging, yet oftentimes the costs can be prohibitive. That’s why home care subsidies are an important part of the puzzle, offering financial assistance for those who need it so they don’t have to choose between necessary home care and other necessities. Governments should make home care subsidies more readily available – and it could save lives in the process.
Want to find out more? Want to see what support you might be eligible for? Give us a call today on 1300 550 940 to make an appointment.
