While many people may not know the difference, there is a range of distinctions between an aged care facility and a retirement village. In our article today, we will delve into the differences.
First, retirement villages are governed by State Government regulations whereas aged care comes under Federal jurisdiction. A retirement village primarily involves self-care and self-‘admission’ for those over the age of 55, whereas an aged care facility requires the potential resident to undergo an ACAT assessment with some level of personal care or nursing; generally being of any elderly age.
The Federal Government subsidises Aged Care and also guarantees an accommodation payment when paid as a lump sum, whereas retirement village residents fully pay for their own living expenses with no guarantee from any level of government.
Numerous retirement villages also have aged care facilities on-site, however, the financial rules around them are different even if they are located in close proximity.
Moving into an aged care facility may also provide pension and tax benefits depending on your individual financial situation; with government assistance for those with limited assets and income, whereas for retirement villages, these benefits are not present.
If you are looking at moving into a retirement village or aged care facility, please contact us as we can provide you with all the ins and outs of both facilities.
If you would like help in this area, please contact one of our experienced estate planning accountants and lawyers by clicking here to submit an online enquiry form, calling us on 1300 QUINNS or alternatively, 9223 9166 to arrange a teleconference or appointment.