Client Story: An Error That Cost Thousands

Anne came to our office, evidently distressed by a Centrelink letter stating her mother’s means-tested care fee had increased to $335/day. She explained that her mother had sold her house some months earlier, paying off the Refundable Accommodation Deposit (RAD) and depositing the remaining $1,000,000 into a bank account. 

After reviewing the income and assets, we realised the means-tested fee should be about a third of the amount stated and on checking with Centrelink, we identified two major issues: 

❌A significant data entry error in the bank balance with an extra three zeros recorded as $1,000,000,000 and inflating her assets from millions to billions. 

❌ The RAD payment was not recorded in the Centrelink system. 

The Centrelink officer acknowledged the error and immediately corrected the means tested fee from that day onward. We also actively worked with the Complex Assessment team to rectify the back charges. Sadly, in that time Anne's mother passed away before the case was finalised. Our authority to act on her behalf then ceased upon Centrelink's advice of death, and only the Executor of the estate could deal directly with Centrelink. Anne then had to make multiple in-person visits to Centrelink despite her work schedule but after a further three months, she eventually received a refund confirmation letter. 

We are pleased with the final outcome and share a few important points: 

🔸 Ensure understanding of aged care fees, including their projections as circumstances change. It is always advisable to obtain professional financial advice. 

🔸 When in doubt about a Centrelink determination, seek clarification from Centrelink and/or a professional. 

🔸 Always contact Centrelink to incorporate any new information - Posting, handing in or uploading documents to Centrelink does not automatically trigger a re-assessment and may sit on file unless brought to their attention. 

💡 Ideally Centrelink would not cease nominee access on advice of death when a case is still open with their complex assessment team. Many families might give up due to the lengthy and confusing process while grieving and making arrangements for their loved ones. The process should be made easier instead of escalating complications.