Below you will find a simple explanation of the fees and charges. We know there is already a lot of information to digest so we want to reiterate that we are here to help you understand what is involved. Please do not hesitate to contact us and a friendly member of our Admissions Team will be able to answer all your questions and explain things clearly.
Fees and charges in residential aged care are a combination of fees assessed and set by the government, and charges applied by your home provider. They will vary according to the type of care you require, the home that you choose and also your financial situation.
The Australian Government provides funding to aged care homes to assist with the cost of your care. However, the Government expects those who can afford it to contribute to the cost of their care as well. Fees set by the Australian Government are:
All aged care residents pay a standard Basic Daily Care Fee equivalent to 85% of the full pension which covers meals, laundry and cleaning. This fee is reviewed every March and September, in line with Centrelink increases in the Aged Pension. The current daily care fee is $52.25 (per day) regardless of your financial status.
The Means Tested Care Fee ensures that residents who have additional income and assets contribute to their overall residential care costs including nursing and personal care.
The Australian Government, through Centrelink, assesses all residents entering a Commonwealth-funded residential aged care facility. Apart from the Basic Daily Fee, residents with assets and income above the set thresholds may also be asked to contribute toward the cost of their care. The maximum Means Tested Care Fee that a resident can be asked to pay per year is $28,87.41 with a lifetime limit of $67,489.85. Adjustments to your account will be reconciled subject to receipt of Centrelink advice.
Residents will receive information regarding their Means Tested Care Fee obligations between 14 and 60 days after the completion and lodgement of the “Permanent Residential Aged Care Request for a Combined Asset and Income Assessment”.
Depending on your income and assets, you may be asked to pay an accommodation payment. This level of this accommodation payment is dependent on the specific residence and suit you are interested in and the method you choose to pay the fee.
The payment options are:
Refundable Accommodation Payment (RAD)
Each room has a differing Refundable Accommodation Deposit (RAD), used to maintain and improve the accommodation and resident services at the home. A RAD is a lump sum payment to the aged care provider. The full RAD amount is refunded upon departure of the facility and is 100% guaranteed by the government.
Daily Accommodation Payment (DAP)
The DAP amount is a calculation based on the Maximum Permissible Interest Rate (MPIR), which is set by the government, and the agreed price of the room/suite you are interested in. Our Admissions staff can give you an indication on the DAPs which may apply to a particular room. DAPs are not refundable when you leave the aged care facility.
Combination RAD/DAP
You can choose to pay part of your accommodation as a RAD and part as a DAP. DAP amounts will be calculated based on the outstanding RAD amount. Upon leaving the facility, your RAD amount will be refunded but not DAP payments.
Supported Residents
We stated above that Accommodation Payment is dependent on a person’s assets and income. Some rooms are available for residents with reduced financial means (Supported Residents). Residents with assets under $49,500 and an income less than $27,232.40 (Note 1) may be eligible for additional funding from the Australian Government.
Supported residents may be asked to contribute to their cost of care via a Daily Accommodation Contribution (DAC) or Refundable Accommodation Contribution (RAC) or a combination of both, if their assets are between $49,500 and $168,351.20 and their income is greater than $27,232.40 (Note 1).
RAC = Refundable accommodation contribution this is where the government determines the amount to pay (This only applies to a partly-supported resident).
DAC = Interest paid on outstanding amount of the RAC – accrued daily and payable monthly which is the daily accommodation payment advised by the government.
Note 1: The income cap is variable based on whether you are a single person or a couple who do not live together because of illness. The figure quoted here is for a single person.
An Extra Service Fee applies to residents whom occupy an Extra Service place at our Marebello facility. Extra Service is a government term used to describe a place offering a higher level of accommodation and services.
Where applicable, Vacenti’s Servizi package offers residents Additional Services over and above what is provided as standard service. The Additional Service fee is dependent on the facility and the range of additional services provided.
Fee Collection
All applicable fees and charges are collected on a monthly basis in advance via direct debit. There is no fee associated with this direct debit service.
The actual dollar figures quoted above are accurate as at 20 March 2019. These are set and reviewed twice per year by the Commonwealth Government.
We know there is a lot to take in and want to make sure you are not confused about any of the fees and charges. To ask us a question (big or small) or go over anything in the process, please call our helpful Admissions Team on (07) 3422 9300. We are always here to help you and make this transition as easy as possible.
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