What Costs are Involved?

Guide to Fees and Charges

All residents are asked to pay fees and charges as a contribution towards their accommodation, living expenses and care. If you cannot afford the fees and charges, there are protections in place which ensure you will still have equal access to residential aged care.

Your fees and payments are regulated by the Australian Government. These may also be subsidised based on your income and assets.

There are five fees and charges you may be asked to pay:

• Basic daily care fee
• Means-tested care fee
• Accommodation costs
• Extra service fee
• Specified care and service charges (e.g. medications specific to each resident)

Basic daily care fee

All residents in aged care, including respite residents, can be asked to pay a basic daily care fee as a contribution towards their day-to-day living costs such as meals, cleaning, laundry, heating and cooling.

The maximum basic daily care fee for most permanent residents is 85% of the single age pension. Daily care fees are reviewed by the Department of Health twice yearly, in March and September, in line with changes to the Age Pension.

The basic daily care fee is payable monthly in advance.

Means-tested care fee

The Australian Government asks aged care residents to pay a further contribution towards the cost of their care, relative to their capacity to do so. The Department of Health determines the means-tested care fee based on your individual circumstances and income information provided by Centrelink and the Department of Veterans Affairs.

For most people, the means assessment should be completed after they have been assessed for an aged care home and before they have entered care. Annual and lifetime caps apply to the means-tested care fee and contributions made by people receiving home care will be considered when calculating the lifetime cap.

The means tested fee is payable monthly in advance.

Further information about this can be found at My Aged Care.

Accommodation costs

When it comes to accommodation, there are three payment options:

1. Refundable Accommodation Deposit (RAD)
2. Daily Accommodation Payment (DAP)
3. Combination Payment (RAD+DAP)

You have 28 days from the day you move into your aged care home to decide which payment method you prefer. You must pay your accommodation costs by the rental-style payment method until you decide on how you want to pay for your accommodation.

Refundable Accommodation Deposit (RAD)

The refundable accommodation deposit (RAD) amount is the price negotiated for your residential aged care room. Information about your preferred room, including key features, amenities and the refundable accommodation deposit amount will be provided in our information pack and is also published on our website, search for your preferred Centre via our location page.

If you choose to pay your refundable accommodation deposit as a lump sum, the entire amount is due on your date of admission and will be refunded in full to your estate.

Daily Accommodation Payment (DAP)

This is a rental style payment option. The daily accommodation payment (DAP) accrues daily and is paid periodically, for example monthly in advance. These payments are not refunded when you leave. It is calculated by multiplying the agreed RAD by the current maximum permissible interest rate (MPIR) and dividing by 365 (days per year). The MPIR is set by the Commonwealth Government and is reviewed four times a year.

Combination Payment (RAD+DAP)

Payment option where you choose to pay a portion as a lump-sum and the balance as DAP. You can nominate any amount for the lump-sum component. Our self-serve online pricing calculator and friendly staff can help you explore different combinations of the two.

Example: A combination payment for a $400,000 price may be a RAD of $200,000 and DAP for the remaining $200,000 e.g. $200,000 x 5.54% (MPIR) / 365 = $30.36 per day.

Combination payment with DAP draw down

You can also choose to pay a part refundable accommodation deposit and have the daily accommodation payment drawn down from the part RAD paid.

Extra service fees

Applies to residents occupying an extra service place (both permanent and respite) for the provision of a significantly higher standard of accommodation, services and food.

Extra service places are available at our Elizabeth Jenkins Place Aged Care Plus Centre at Collaroy, NSW and extra service fees and inclusions will be discussed on application.