MidCoast Council deputy mayor, Alan Tickle has been supported by fellow councillors in his call for a review of non-regulated service fees which are charged by many aged care facilities.
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Cr Tickle is asking for the issue to be placed on the agenda at the Australian Local Government Conference is early July.
The motion asks for a federal government review into the practice, undertaken by many aged care facilities which charge non-regulated addition service fees.
It also draws attention to the complexity assessing means tested fees and the conflicting method of assessment for aged pension.
A financial planner and accredited aged care financial adviser, Cr Tickle said if a person of low means was forced to pay the basic daily care fee of $61.96, plus an additional service fee of $25 per day - which is not uncommon in this local government area - then the amount the resident was called upon to pay often exceeded the single rate pension and may result in financial hardship.
The basic fee and the additional services fee is on top of other potential fees such as means tested fees and daily accommodation payments.
A person with dementia paying for pay TV, when they can't operate a remote control or have no interest in watching TV, I suggest is totally unacceptable
- Cr Alan Tickle
"I can understand why aged care facilities have had to cover increases in their operation costs and have resorted to applying compulsory non-regulated fees," Cr Tickle said.
"But, I can't condone refusing to un-pack those fees so that only additional services required are paid for," he said.
"For example, a person with dementia paying for pay TV, when they can't operate a remote control or have no interest in watching TV, I suggest is totally unacceptable.
"That is a common complaint I am hearing and it is widespread."
Cr Tickle also called out the differences in assessment between aged care and aged pension when it came to the treatment of the family home, which added to the confusion.
"At a time when there is a shortage of rental accommodation, the current assessment of the family home does not encourage the home of a person entering aged care being offered for rental accommodation," he said.
"This is because the two year asset exemption applied to a vacated home with respect to the aged pension and the lifetime asset value of $201.231.20 applied to the home for aged care means test, often means that leaving the home vacant, when there is no surviving spouse or carer in the home, can result in the retention of aged pension benefits and reduction in means tested aged care fees, rather than selling or renting the home and having the full asset value counted.
"I have personally taken up the issues related to aged care and aged pension assessments with our Lyne MP David Gillespie and have also engaged with the duty senator for the Lyne Electorate, Senator Deborah O'Neill.
"I'm hopeful that a response from the Australian Local Government Association, will add to the pressure on the Australian Government for a review."
