Residential aged care fees
Residential aged care fees are comprised of two parts: the Daily fee and an Accommodation payment.
A. DAILY FEE
The daily fee consists of 3 parts: the basic daily fee, the means tested care fee and an extra service fee.
1. Basic daily fee
Every person in residential aged care is required to pay a basic daily fee, which covers all levels of care and assistance. This fee is set by the government and is based on approximately 85% of the single Australian aged pension.
The basic daily fee includes: 24/7 nursing, laundry, all meals, utility costs, cleaning and any in-house lifestyle activities.
2. Means tested care fee
The government requires those who can afford to contribute more towards their care do so. As such, the Department of Human Services will determine if a resident is required to pay a means tested care fee on top of their basic daily fee. This amount is based on an assessment of the new resident’s income and assets.
New residents need to complete and lodge an Income and Assets Assessment Form with the Department of Human Services. The Income and Asset Assessment Forms can be downloaded from the Department of Human Services: www.humanservices.gov.au, or you can order them on 1800 227 475.
There are yearly and lifetime maximum means tested care fees.
3. Extra services / Arcare Signature
A number of our aged care residences offer extra services or Arcare Signature. These residences provide enhanced daily living and social experiences such as a variety of meal choices and superior lifestyle options. In these residences there is an additional charge that varies depending on the services provided to the resident. This can be discussed with one of our Client Service Managers or by calling 1300 272 273. Learn more about Arcare Signature here
B. ACCOMMODATION PAYMENT OPTIONS
The total accommodation payment amount will vary depending on the accommodation type chosen by the resident. The payment method is also determined by the resident, who can choose between paying 1 of 3 types: a RAD, a DAP or a combination payment.
1. A Refundable Accommodation Deposit (RAD)
A Refundable Accommodation Deposit (R.A.D.) is a one-off lump sum payment made to the aged care provider. Details of R.A.D. amounts for each room type are published on the My Aged Care website at www.myagedcare.gov.au and also on this website.
The R.A.D. is fully refundable on departure and replaces the old ‘bond’ style of payment. For more information on RADs click here.
2. A Daily Accommodation Payment (DAP)
A Daily Accommodation Payment (DAP) is a rental-type payment. Instead of paying the accommodation payment in full as a RAD, an ongoing daily payment can be selected. The DAP amount is calculated from the RAD amount at the government set interest rate. Examples of DAP payment options for a particular residence can be found here. Like rent, no funds are returned when the resident leaves the Arcare residence.
3. A Combination Payment
Residents can opt to pay part of the accommodation payment as a lump sum RAD and then the balance via DAP payments. DAP payments will be calculated based on the outstanding RAD amount.
Does the family home need to be sold to enter aged care?
It is not necessary to sell the family home to enter 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 costs?
This will depend on the additional luxuries that your loved one would like to enjoy at their Arcare residence. The telephone, hairdresser, beautician, purchases from the café and gift shop, wireless internet and Foxtel do incur additional charges (unless covered under the extra services fee).
Residents are responsible for 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 will have the costs paid for by Arcare.
If you have any additional questions please call 1300 272 273 and we will be happy to help answer them for you. Our Client Service Managers can provide you with brochures from a number of financial advisors who specialise in aged care.