It is important that you understand residential aged care fees and payment options so that you can make the best choices for you and your family.
Residential aged care fees comprise of two parts:
1. Daily care fees – these fees cover your day-to-day aged care services.
2. Accommodation Fee – this is the fee for the suite you have chosen at your selected residence.
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 fees are part of the entry into residential aged care. The total accommodation payment amount will vary depending on the accommodation you choose.
You can select one of the below payment methods:
1. Refundable Accommodation Deposit (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 Accommodation Payment (DAP)
The Daily Accommodation Payment is a rental-type fee that is charged daily. It’s calculated from the Refundable Accommodation Deposit amount at the government’s set interest rate.
There is no initial lump-sum payment for accommodation and no funds are returned when the resident leaves.
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.
We have three types of aged care accommodation types available at Arcare.
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.
2. Partially Government supported accommodation
We also offer partially supported suites where a 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.
3. Standard accommodation
Most aged care suites at our aged care residences 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
All the RAD amounts for each room type are available on our website. Visit the page of the residence you’re interested in, go to the Downloads section and download the Price List. View all our Arcare residences.
The government allows you or your loved one six months from when you enter Arcare to pay the full RAD balance. You will need to pay interest 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.
The government guarantees all Refundable Accommodation Deposits (RADs) that are paid to Arcare.
If 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 returns home, the RAD is refunded within 14 days of 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.
It depends on a case-by-case basis. It may not be necessary to sell the family home to enter aged care however, this will depend on your financial situation.
We suggest seeking financial advice to determine the best financial outcome. Be aware that your financial structure may impact on your pension and means tested care fee.
Our dedicated Client Service Managers can provide you with brochures from several financial advisors who specialise in aged care.
Yes. Residents must pay 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 of required care will have the costs paid for by the government.
Other additional costs may depend on the additional luxuries that you would like to enjoy at your Arcare residence, including telephone, hairdresser, beautician, purchases from the café and gift shop and the Arcare Signature service.
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.
There are government supported subsidies for pensioners with low assets (Concessional Residents). If eligible, residents are not required to pay an accommodation bond in addition to aged care fees. For more information, visit My Aged Care.
Related pages:
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.
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.
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View residenceTo 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.