Australia: federal government subsidises long term care by up to £22 000 a year
- By: Christopher Zinn
The federal government is largely responsible for funding residential care for old people in Australia, helped by a combination of flat user fees and income tested fees.
The government pays a subsidy to service providers--which include the charitable, religious, and private sectors--for each day a bed is occupied.
Care homes for elderly people (known as “aged care homes”) can receive up to $A66 000 (£25 300; $38 000 ; a39 000) a year to look after a high care resident, with the government paying a subsidy of up to $A57 500 and the elderly person making up the difference, in what are known as “basic daily care fees.”
Residents thus contribute about 13% of the cost of their accommodation and care from their private income, savings, and pension. Residents with greater needs attract a greater subsidy.
Those who do not have the full means tested pension may also have to