Member of a couple entering respite care

When a member of a couple enters residential respite care for 14 days or more, it is important to advise Centrelink or the Department of Veterans Affairs as they may be entitled to a higher rate of Age or Service Pension.

What is residential respite care?

Residential respite care is available in aged care facilities for people who need care temporarily, but who intend to return to their own home. Respite care may be used on a planned or emergency basis to help with carer stress, illness, holidays or non-availability of the carer for any other reason.

To be eligible to enter approved respite care, the client requires an Aged Care Assessment Team (ACAT) assessment.  Subsidised respite care is available for a maximum period of 63 days in a financial year.  An additional 21-day extension period may also be available.

What fees are payable?

Residents in respite care are required to pay the basic daily care fee which is currently $61.96 per day.

In some cases a booking fee may also apply.  A booking fee is a prepayment of residential respite care fees and not an extra payment. The booking fee cannot be more than either a full week’s basic daily fee, or 25% of the fee for the entire stay, depending on which amount is the lowest.

Where residents receive respite care on an extra service basis, they may also be charged an extra service fee.  In standard aged care facilities, an additional services fee may be charged where the resident agrees and they have a low-level respite care approval.[1]

How does entering respite care impact pension entitlements?

When a member of a couple enters respite care for at least 14 consecutive days and notifies Centrelink or the Department of Veterans Affairs, they are assessed in the same way an ‘illness separated couple’ when determining their rate of pension payable from Centrelink or the Department of Veterans Affairs[2].

An illness separated couple is eligible for a higher rate of pension as both members of the couple receive the single rate of payment each.   The maximum rate of pension for each member of an illness separated couple is currently $1,116.30 per fortnight ($29,023.80pa each).   This is higher than the maximum rate for a member of a couple that is not an illness separated couple which is currently $841.40 per fortnight ($21,876.40 pa each).

Important note - the illness separated rate of pension is only payable from the date of notification to Centrelink.  Therefore clients should notify Centrelink as soon as they enter respite care to receive the maximum increase in payment.

Example

George and Mildred are a couple receiving the maximum rate of Age Pension.

George is assessed by ACAT as eligible to receive residential respite care.  George advises Centrelink that he has entered respite care for 28 days.

As he intends to receive respite care for more than 14 days, Centrelink calculate their Age Pension under the illness separated couple rate for the period George receives respite care.

If George had not notified Centrelink of the period of respite care, the couple would have received Age Pension of $3,365.60 combined for the 28 day period.

However as George did notify Centrelink, the couple’s age pension is increased to the illness separated couple rate of $4,465.20 for the 28 day period.  This is an increase of $1,099.60.

Can they receive rent assistance?

Rent assistance is not payable in respect of respite care fees.

However rent assistance may continue to be payable to the client in respite care and the partner remaining at home at the illness separated couple rate if they were receiving rent assistance prior to admission to aged care.

[1] Dept of Health and Aged Care, Fees for residential respite care

[2] Social Security Guide, 2.2.5.70  Determining a respite care couple and 5.1.8.30 Common provisions affecting calculation of a rate