Retirement
Exit amounts: What you need to know before February 2017
With recent changes to home care packages, it’s vital that you know what will happen to your exit amount come 2017.
Exit amounts: What you need to know before February 2017
With recent changes to home care packages, it’s vital that you know what will happen to your exit amount come 2017.
Home care providers who intend to charge an exit amount under their home care agreements will be required to take steps to comply with transitional provisions before February 2017. Providers will also need to be ready to account for unspent home care package funds.
On 23 September 2016, the Aged Care Legislation Amendment (Increasing Consumer Choice) Act 2016 was registered to the Aged Care Principles and Determinations. From 24 September, transitional provisions relating to exit amounts in home care agreements commenced.
What is an exit amount?
An exit amount is a fee that an approved provider of home care can deduct from a person’s unspent home care package funds. From 27 February 2017, unspent home care package funds (less an exit amount) will be either transferred to another home care provider (if the person has transferred services) or returned to the government.
What are unspent home care package funds?
Unspent home care amounts represent the total amount of home care subsidy and home care fees paid (or payable) to the approved provider for the consumer that have not been spent for the period from:
1. July 2015 or the later date the consumer commenced receiving home care; and
2. The date on which the provider ceases to provide home care.
If a consumer ceases to be provided home care before 27 February 2017, any unspent home care package funds received before that date can be retained by the approved home care provider.
What are the transitional provisions?
1. An approved home care provider can charge an exit amount before the commencement of the amendments in February 2017 (if points 2 and 3 are followed). This applies to both existing and new home care agreements, provided that where an existing agreement is in place, it is varied by mutual consent;
2. The department must be notified of the maximum exit amount; and
3. The maximum exit amount must be made publicly available on My Aged Care.
The department has indicated that it will advise approved home care providers on how to provide notice on their maximum exit amount in the coming months.
The department also said this will not affect approved home care providers from being able to include exit amounts in any new or varied home care agreements before this time.
The reforms to home care implemented under the Aged Care Legislation Amendment (Increasing Consumer Choice) Act 2016 will commence on 27 February 2017.
Arthur Koumoukelis, partner and Kimberley Vancuylenberg, solicitor, Gadens Sydney
Retirement Planning
Empowering your future: Financial literacy and retirement planning in Australia
In today’s complex financial landscape, achieving a secure and comfortable retirement requires more than just saving money. It demands a deep understanding of financial concepts and the ability to ...Read more
Retirement Planning
How much do you need to retire comfortably in Australia?
Retiring comfortably in Australia is a goal shared by many, but achieving this requires careful financial planning and a clear understanding of the cost of living. Read more
Retirement Planning
Retirement planning advice for Australians: Avoiding common pitfalls
Retirement planning is a critical step in securing your financial future, but it's fraught with potential pitfalls that can derail even the best-laid plans. Read more
Retirement Planning
Mastering financial planning for retirement in Australia
Financial planning for retirement is a nuanced journey that requires careful consideration and strategic planning, particularly in Australia's unique financial landscape. Read more
Retirement Planning
Crafting your retirement planning spreadsheet in Australia
Retirement planning is a crucial aspect of financial management, especially in Australia where the landscape of superannuation and investments offers unique opportunities and challenges. Read more
Retirement Planning
Maximising your pension plan in Australia: Strategies for a comfortable retirement
In the ever-evolving landscape of retirement planning in Australia, securing a comfortable retirement through your pension plan has become increasingly important. Read more
Retirement Planning
Supporting our veterans: A guide to financial resources and benefits
Military veterans have made invaluable contributions to their country, and in recognition of their service, there are numerous financial resources and benefits available to support them in civilian ...Read more
Retirement Planning
The ultimate retirement planning checklist for Australians
Retirement planning is a multifaceted process that demands careful attention to financial, legal, and personal considerations. Read more
Retirement Planning
Empowering your future: Financial literacy and retirement planning in Australia
In today’s complex financial landscape, achieving a secure and comfortable retirement requires more than just saving money. It demands a deep understanding of financial concepts and the ability to ...Read more
Retirement Planning
How much do you need to retire comfortably in Australia?
Retiring comfortably in Australia is a goal shared by many, but achieving this requires careful financial planning and a clear understanding of the cost of living. Read more
Retirement Planning
Retirement planning advice for Australians: Avoiding common pitfalls
Retirement planning is a critical step in securing your financial future, but it's fraught with potential pitfalls that can derail even the best-laid plans. Read more
Retirement Planning
Mastering financial planning for retirement in Australia
Financial planning for retirement is a nuanced journey that requires careful consideration and strategic planning, particularly in Australia's unique financial landscape. Read more
Retirement Planning
Crafting your retirement planning spreadsheet in Australia
Retirement planning is a crucial aspect of financial management, especially in Australia where the landscape of superannuation and investments offers unique opportunities and challenges. Read more
Retirement Planning
Maximising your pension plan in Australia: Strategies for a comfortable retirement
In the ever-evolving landscape of retirement planning in Australia, securing a comfortable retirement through your pension plan has become increasingly important. Read more
Retirement Planning
Supporting our veterans: A guide to financial resources and benefits
Military veterans have made invaluable contributions to their country, and in recognition of their service, there are numerous financial resources and benefits available to support them in civilian ...Read more
Retirement Planning
The ultimate retirement planning checklist for Australians
Retirement planning is a multifaceted process that demands careful attention to financial, legal, and personal considerations. Read more