As the Australian government further improves its aged care system, ASAG Equity Release can provide support for Home Care.
The Australian aged care system is set up to allow senior Australians extra assistance, either in a residential facility or their own house.
While transitioning into residential aged care can be a necessary option for those who require round the clock medical attention, managing this may be an overwhelming experience for the person and their families.
Some vital decisions need to be made, such as taking into consideration the location and suitability of the facility, affordability of the fees that are payable and, whether moving into residential care is required. The recipient can stay in their home to receive these support services.
With the population in Australia now living longer than before, most people don’t enter residential care. They live in their own homes with some support from the government approved Home Care providers.
What is a Home Care Package?
A Home Care Package is a care and service that allows a person to live independently. The subsidies provided by the government (paid directly to the care provider) are based on an affordability and income test.
As everyone’s needs are not the same, they are categorised into four levels of requirements of Home Care Packages that range from Level 1 – Level 4.
The Impact of Federal Budget 2020 on Aged Care services
1 July 2014 — the government changed the way fees were calculated for aged care homes and Home Care Packages. These changes were made to reform the aged care system into a more affordable and sustainable one.
The following years also saw a nationally consistent process nationwide of assigning these packages to consumers and preparatory work. This supports the establishment of a single unified system for Home Care and aged care.
October 2020 — The Federal Budget allocated a further $1.6 billion to create an extra 23,000 Home Care packages to add to the 6,105 packages that were announced in July 2020.
Furthermore, an updated and nationally consistent process to the allocation of these packages is also helping people avoid significant waiting lists with multiple providers, prioritising based on personal needs and how long they have been waiting.
Using an Equity Release for In-Home Care
November 2020 — RMIT released a research report on funding ageing in place, which indicates that 90% of senior Australians want to remain in their homes if possible, however, 29% cannot afford to.
Even with a subsidised Home Care package, the age pension may not be enough to cover the costs associated with care. This is where an Equity Release could help those homeowners who need to access further funds for specialised care at home.
An ASAG Equity Release could allow you to access the funds required for in Home Care without having to sell.
ASAG – providing further support
We at ASAG understand how important the family home is. Our Equity Release can help Australian seniors access their home’s equity to fund a more comfortable retirement without selling.
It’s our commitment to enable senior Australians to age in place if they prefer to. To further support this, ASAG is pleased to inform you that our Equity Release can provide support. Funds can be assessed as regular advances or in cash reserve to draw down on request — providing further flexibility to Equity Release.
An ASAG Equity Release can also be used to fund the construction of a granny flat — subject to our usual loan criteria, such as age, location, and valuation.
If you liked our “Using an Equity Release for Home Care” and took away some valuable information, check our blog space regularly for more updates on reverse mortgages and equity releases.