When people start planning to downsize, the focus is usually on lifestyle. Less maintenance, more community, perhaps a pool or a clubhouse. Everyone talks about the lifestyle, location and community of their new “forever home” but very few ask the question that really counts: What happens if I need care?
That question has become even more important. From 1 November, the government have introduced Support at Home, a major reform that replaces the Home Care Package and Short-Term Restorative Care programs.
Under the Support at Home program the former four levels of Home Care Packages expanded to eight, and the maximum funding increased from approximately $61,400 per year to $78,000 per year. Services within your package are categorized as clinical care, independence or everyday living. The government will cover your clinical care, you will not need to make a contribution to these services. However, you will be required to contribute towards your independence and everyday living services, based on your assets and income. For your Independence services, which includes help with showering, getting dressed and taking your medications, your contribution will be at least 5% but not more than 50%. Everyday living services such as assistance with cleaning, gardening and meal preparation will attract a contribution of between 17.5% and 80%, based on your assets and income.
The costs can quickly add up which highlights a reality many downsizers overlook: the type of home you buy, and the financial structure behind it, can have a big impact on how easy it is to access care and what it will cost you.
These are complex decisions — and that’s where a Village Guru report can make a real difference. A Village Guru Report will show the costs associated with the village ingoing, ongoing and outgoing while also showing you the potential impact on your Age Pension and your fees under the new Support at Home system. The report enables you to compare up to 3 options side by side, so if you are thinking about different homes or different villages you can see how they compare.
Downsizing isn’t just about where you’ll live next — it’s about how that move can support you. Asking “What happens if I need care?” could be the smartest question you ever ask.
