Menu

Aged Care Financial Information

It is important that you are informed about residential aged care fees and payment options so that you can make the best choices for you and your family.

Residential aged care fees are made up of two parts:

1. Daily Care Fee – this fee is set by the Australian Government. It is charged daily and covers the provision of aged care services.
2. Accommodation Fee – this is the fee for the suite you have chosen at your selected residence.

Daily Care Fee

Daily Care Fee

The Daily Care Fee in residential aged care is charged on a day-by-day basis and is broken down into the following three categories:

1. Basic Daily Care Fee

Every person in residential aged care is required to pay a basic daily care fee which covers all levels of care and support. This fee is set by the Australian Government and is based on approximately 85% of the single Australian aged pension;

2. Means Tested Care Fee

The means tested care fee is determined by the Australian Government and is based on an assessment of your personal income and means.

My Aged Care has a helpful short questionnaire to determine whether you need to complete the Income and Means Assessment Form. This is dependent on your financial situation. Click here to complete this questionnaire. If it recommends that you need to complete it, a link to download the form will appears.

The form is lodged with the Department of Human Services and they will determine if you are required to pay a daily means tested care fee until an annual or lifetime cap has been reached; and

3. Arcare Signature/Extra Service Fee

This is a daily fee for a range of enhanced living and social experiences including a variety of meal choices and superior lifestyle and activity engagement options.

Accommodation Payments

Accommodation Payments

The ‘Accommodation Payments’ are paid as part of the entry into residential aged care. The total accommodation payment amount will vary depending on the chosen accommodation by the resident.

You can select one of the below payment methods when it comes to accomodation payments:

1. Refundable Accomodation Payment (RAD)

A Refundable Accommodation Deposit is a one-off lump sum payment made to the aged care provider when you first move in. The RAD payment is based on the suite you choose and is fully refundable after departure;

2. Daily Accomodation Payment (DAP)

The Daily Accommodation Payment is a rental-type fee that is charged daily and is calculated from the Refundable Accommodation Deposit amount at the government set interest rate. There is no initial lump-sum payment for accommodation and no funds are returned when the resident leaves; or

3. A Combination Payment

A Combination Payment method is a hybrid of the RAD and DAP methods. Residents can opt to pay part of their accommodation fees as a lump sum RAD, and then the remaining balance can be paid through the DAP payment method until the outstanding balance has been paid. DAP payments will be calculated based on the outstanding RAD amount at the government set interest rate.

How do I know how much RAD to pay?

The RAD amounts for each room type are available on our website on each residence page by clicking on the link “Price list”.

There is also fully or partially supported accommodation available, which provides a subsidy on the RAD amount, depending on your financial situation. Services Australia (Centrelink) determines if someone qualifies as fully or partially supported, or needs to make an accommodation payment based on the information provided in the completed Income and Means Assessment form.

My Aged Care has a short questionnaire that will let you know whether you need to complete the Income and Means Assessment form or whether Services Australia (Centrelink) can complete it for you based on your answers. Upon completing the questionnaire, it will provide you with more information and steps to take based on your answers. Click here to complete this questionnaire.

For assistance please call Services Australia (Centrelink) on 1800 227 475, My Aged Care on 1800 200 422 or the Department of Veteran Affairs on 133 254.

Does the RAD need to be paid upon entry to an Arcare residence?

The government allows you and or your loved one a duration of six months from the date of entry to pay the full RAD balance. There is also added interest that is paid at the current legislated rate from the date of entry until the full RAD amount is paid.

If the RAD is paid within 7 days of entry no interest will be charged.

Is the RAD safe and what happens if a resident leaves or passes away?

The government guarantees all Refundable Accommodation Deposits (RADs) that are paid to Arcare.

In the case that the resident leaves Arcare Aged Care, the RAD is fully refunded to the resident or their estate (less any outstanding fees, charges or interest). If the resident decides to return home, the RAD is refunded within 14 days from discharge.

If the resident passes away, the RAD will be refunded to their estate within 14 days of receipt of a certified copy of Grant of Probate.

What type of accommodation options are available?

There are three types of accommodation types available within Arcare’s aged care residences:

1. Fully Government supported accommodation

We offer fully supported suites where no accommodation payment is required.

Services Australia (Centrelink) determines if someone qualifies as fully supported based on the information provided in the completed Income and Means Assessment form.

My Aged Care has a short questionnaire that will let you know whether you need to complete the Income and Means Assessment form or whether Services Australia (Centrelink) can complete it for you based on your answers. Upon completing the questionnaire, it will provide you with more information and steps to take based on your answers. Click here to complete this questionnaire.

2. Partially Government supported accommodation

We also offer partially supported suites where only a very small accommodation payment is required from the incoming resident.

Services Australia (Centrelink) determines if someone qualifies as partially supported based on the information provided in the completed Income and Means Assessment form.

My Aged Care has a short questionnaire that will let you know whether you need to complete the Income and Means Assessment form or whether Services Australia (Centrelink) can complete it for you based on your answers. Upon completing the questionnaire, it will provide you with more information and steps to take based on your answers. Click here to complete this questionnaire.

3. Standard accommodation

These are the majority of aged care suites that are available at our aged care residences and are subject to an accommodation payment payable by the resident.

Each suite has a set price that is primarily determined by the features and location of the suite, the location of the residence and housing prices in the vicinity. The accommodation payment can take three forms – RAD, DAP or a combination of these.

Does the family home need to be sold before I enter into Aged Care?

It depends on a case by case basis. It is not necessary to sell the family home to enter into aged care. An individual’s financial situation will determine if the family home needs to be sold to enter care.

We suggest seeking out financial advice to determine the best financial outcome.

Be aware that an individual’s financial structure may impact on their pension and means tested care fee.

Are there any additional aged care costs?

Yes. Residents are responsible for all medication costs, which will be direct billed by the pharmacy. We will advise if allied health costs (e.g. podiatry and physiotherapy) will be an additional cost or if they will be paid for by the government. In general, those with low care needs will be required to pay these costs, whilst those at the higher level required care will have the costs paid for by Arcare.

Other additional costs may depend on the additional luxuries that your loved one would like to enjoy at their Arcare residence. This includes telephone, hairdresser, beautician, and purchases from the café and gift shop.

There are other additional luxuries that are included part of the Arcare Signature or Extra Service daily fees. These include Foxtel, wireless internet, choice of menu at lunch and dinner, daily newspapers and many more.

How do I lodge an Income and Means Assessment form?

After you have completed this questionnaire on My Aged Care, it will let you know whether you need to complete the form or contact Services Australia (Centrelink) for them to complete it on your behalf.

If you need to complete the form, you can download it after completing the questionnaire. Once you have completed it, you will need to submit it to Services Australia by either online submission, visiting a Centrelink/Services Australia office or by posting it to them.

These details are available on the last page of the Income and Means Assessment form.

Services Australia (Centrelink) will determine if a prospective resident is required to pay a means tested care fee in addition to the Basic Daily Care Fee and Arcare Signature/Extra Service Fee.

What if my aged care financial question is not on here?

If you have any additional questions please call 1300 297 189 and we will be happy to help answer them for you.

Our dedicated Client Service Managers can provide you with brochures from a number of financial advisors who specialise in aged care.

Arcare Financial Information

Entry into an Arcare residence PDF

Entry into an Arcare residence PDF

pdf 355.53KB
Download

Learn more about aged care

To find out your more about your Aged Care needs and eligibility for you or your loved one, please get in touch with one of our team members.