11th Jul 2011
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The Carbon Tax: What’s in it for aged care residents
Author: YourLifeChoices

What will you receive?
A one-off lump sum advance
Australian recipients of an Age Pension or Disability Support Pension who reside in an aged care facility will receive assistance in two ways.
Firstly, a separate Clean Energy Advance will be paid to pensioners. This will amount to $250 for a single pensioner or $190 for each eligible member of a couple. It is estimated that 50 per cent of this lump sum will be paid directly to the aged care provider, with the remainder going to the individual.
This payment is designed to cover the costs passed on by those top-500 polluting companies to which the carbon tax will be applied from 1 July 2012. This supplement will cover costs from 1 July 2012 to 20 March 2013 when pension increases will be applied.

It is worth noting that these payments will automatically be implemented by Centrelink of the Department of Veterans’ Affairs, you will not need to claim.

An ongoing increase in the pension
The second benefit is the increased pension rate as mentioned above. This assistance will be delivered as a new, permanent Clean Energy Supplement. This assistance, which equates to an annual increase of up to $338 for a single pensioner and $255 for each eligible member of a couple, will be shared with aged care providers. Under the Clean Energy Supplement, providers will see the basic daily fee payable by a resident increase from 84 to 85 per cent of the basic pension amount. The resident of the facility will receive the remainder of the Clean Energy Supplement once the basic daily fee increases have been applied.

This payment will be indexed for CPI so it stays in line with general price increases and will be paid in addition to the existing Pension Supplement.

This payment also applies to holders of a Commonwealth Seniors Health Card.

As with the advance, you do not have to apply for this increase, you will receive it automatically if your details are up-to-date
 
Will fees increase?
For those residents who are not eligible for a pension, or a Commonwealth Seniors Health Card will not see an increase in fees due to the carbon tax. The Australian Government will pay a subsidy to aged care homes for these residents so that individuals will not be hit by increased fees.
 
Ask us your question – as always, we are here to help.
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