Col's notes in blue - Pension supplement = allowances for utilities, chemist, GST and phone - total $60.
These calcs. depend on whether the subject receives the supplement and whether Centrelink considers the supplement as income in certain circumstances.

There are THREE types of nursing home fees. - (Condensed from Dept of Health and Centrelink).
If a resident chooses not to have an assets assessment, or their assets are above $107,850.40 the amount of accommodation charge they may be asked to pay will be the maximum applicable rate. This is currently $32.38 per day for all residents.
How is the ACCOMODATION CHARGE calculated?
For residents who enter care for the first time between 20 September 2011 and 19 March 2012 and have assets over $40,500 the maximum daily accommodation charge can be calculated using the following steps:
1. Calculate the value of your assets
2. Subtract $40,500 from the answer of Step 1
3. Divide the result by 2,080 to give a daily accommodation amount (or a maximum of $32.38)

(150,000 - 40,000) / 2,080 = $52 so $32.38.

4. If the calculated charge is under $1.00, no charge is applicable (The home will receive a full rate of Government subsidy on the resident's behalf.)
The rates of BASIC DAILY FEE are set using a percentage of the single age pension. Most residents will pay the standard rate of basic daily fee, which is 84% of the single rate of the basic age pension. However, each resident's rate is determined according to their circumstances at the time they entered permanent residential aged care.
Maximum Basic Daily Fee 1
- Standard Resident contribution2 - includes respite residents - up to $41.34

Pay (pre asset sale) : Daily Fee $41.34 + Accom. Charge $32.38 = $73.72
$73.72 * 365 / 12 = $2242 per month after receiving pension $1504 (or $1384 without supplement).
= $738 ($858) per month deferred payment : $8856 ($10296) p.a. - plus 6% interest - $531 or ($618).

Who will pay income tested fees?
Only residents with total assessable income above the maximum income of a full pensioner are asked to pay an income tested fee.
A resident cannot be asked to pay an income tested fee if they:
- are a full means tested pensioner

- other

How much can a resident be asked to pay?
The maximum level of a resident's income tested fee will be based on their total assessable income. The Department of Health and Ageing determines income tested fee amounts based on income information provided by Centrelink.
The applicable income tested fee payable is calculated at 5/12th of assessable income above the income tested fee threshold.

Post asset sale :
Private income above pension calculated approx = $140,000 * .06 / 25 = $336
Pension rate ($690) reduced by $93 (336-150)*0.5 = $597
total income = $933 (?? +26*60supplement=$1560)
minus $866 (standard threshhold) = $67 per fortnight
at 5/12th = $2 per day
Total payable : Daily fees = basic(41.34)+ accom. charge (32.38) + income tested (2)
= $75.72 daily - Approx. $2347 monthly - $28,164 p.a.


How does deeming work?
Deeming assumes that bank accounts and other financial investments are earning a certain rate of income, no matter what income they are actually earning.
Financial investments include:
bank, building society and credit union accounts
term deposits
cheque accounts


Financial investments do not include:
the resident's home or its contents


Under the deeming rules, the actual income earned on an asset is not counted. This means that if the resident earns more than the deemed income, the extra amount is ignored.
Examples of income tested fees

Example 3
Ms Reilly is single and has non-pension income of $400.00 per fortnight on top of her pension of $577.30 per fortnight. Her total assessable income is $977.30 per fortnight. Ms Reilly pays the standard rate of basic daily fee. Her maximum income tested fee would be 5/12th of her assessable income above the standard income tested fee threshold.

For further information regarding income tested fees and the current maximum rates please call 1800 200 422*.