Joshua and Claire both age 63 plan to retire in two years. Their home in a major capital city is worth $1,700,000 (no mortgage). They each have a superannuation balance of $150,000 (includes a tax-free component of $22,500). They are quite conservative investors. Their current expenses are $70,000 per annum and they like the idea of moving to a regional area to be closer to their parents who are aged in their late 80s. They expect to buy a new home for $1 million and use the balance of $700,000 for their retirement. They like travelling and want as much as they can in the first 10 years of their retirement.

Claire's mother Ruby is unwell and her health is rapidly deteriorating. An Aged Care Assessment Team (ACAT) assessment confirms the need to relocate to an aged care facility.  After some research, Claire found a suitable aged care facility in the same regional centre where they plan to move.  However, Claire is concerned as the entry cost (Residential Accommodation Deposit) is $320,000 but Claire's father is still well enough to live in his home valued at $750,000. They have $40,000 in a term deposit and $3,000 in savings and are entitled to the full Age Pension.

 

Calculate the aged care fees for the parent in this scenario
What are the options in paying the accomodation contribution?
Assume the client's parent sold the family home and moved in with the clients. The, the parent used some of sale proceeds to pay for the Refundable Accommodation Deposit. What would the aged care fees be amended to?