Aged Care Placement and Senior Relocation

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Aged Care Fees and Charges


Aged Care Fees and Charges

Aged Care Fees and Charges - Introduction

The usual response by a family carer is confusion - when they have to consider residential aged care financials - the family carer is under real emotional strain coping with an elderly relative who is physically frail or has a level of cognitive decline - trying to understand the financials becomes more difficult in this situation.

We have assisted many families to understand the way in which the aged care financials are calculated, their implications, and strategies that can be used to minimise the financial impact of moving into residential aged care.

While the Commonwealth subsidises the cost of aged care in a Commonwealth regulated aged care home, the resident may be expected to pay a number of aged care fees and charges; some fixed and mandatory fees, and some variable and optional fees depending upon the financial circumstances of the resident.

The actual fees you may be asked to pay will depend on your assets and income, which is assessed by the Department of Human Services or the Department of Veterans’ Affairs. You’ll need to know how much income you and your partner receive, and how much you and your partner own in assets. You can use the My Aged Care Income and Assets Checklist to make sure you’ve listed all of your income and assets.

The My Aged Care fee estimator can help you work out how much you can expect to pay for the type of care you want. The fees are indexed (increased) twice each year in March and September when the Age Pension gets increased.

Residential Care Fee Estimator:

  • You can expect to pay a basic daily fee of $51.21 per day to cover living costs such as meals, laundry, and electricity. The basic daily care fee is 85% of the single person rate of the Age Pension.
  • The government pays the means-tested care fee of around $54 per day if you have a low income. If you have high income, you will have to pay this fee. This is an estimate, and the actual cost of the care fee will depend on the real cost of your care.
  • Additional fees will apply if you choose to add extra services or a higher level of accommodation to your residential care package. The government will not pay these fees, as they are your choice and your responsibility.

Aged Care Fees and Charges - Categories of Fees

Daily Care Fees

All residents are required to contribute to their care by paying the basic daily care fee, and then for some residents who have been assessed as having sufficient menas, they may also be asked to pay the means tested care fee.

Basic Daily Care Fee (BDCF)

The Basic Daily Care Fee is fixed and mandatory and is set at 85 % of the current age pension. As the BDCF is indexed to the pension, when the pension is increased on the 20th March and 20th September in each year, then there will be a small increase inline to the BDCF.

Means Tested Care Fee (MTCF)

The Means Tested Care Fee is calculated by the Commonwealth and is based upon information provided by the resident in the "Combined Asset and Income Assessment (SA457)" form.

Families can obtain an estimate of the MTCF by accessing the Residential Care Fee Estimator on the My Aged Care website

If the family chooses not to complete the SA457 financial assessment, then the Commonwealth will charge the maximum MTCF which has a cap of $ 27,532.59 annually, or $ 66,078.27 lifetime.

Accommodation Payment

Aged Care Providers can request an accommodation payment from the resident - this accommodation payment can be made as either a lump sum payment (consider to be like a rental bond) or can take the form of an equivalent daily payment. The family can also choose to pay the accommodation payment as a combination of a lump sum payment and daily payment.

Residents who have low means will have their accommodation payment paid by the Commonwealth.

Refundable Accommodation Payments (RAD, RAC)

For residents with sufficient means, they will be required to pay the Refundable Accommodation Deposit (RAD). The RAD is an arbitary amount which has been set by the aged care provider as the maximum amount that they can request for the room being considered. Not all residents pay the maximum RAD - the RAD can be negotiated with the aged care provider.

For residents with lower means, the Commonwealth will ask the resident to contribute to the accommodation payment.

Daily Accommodation Payments (DAP, DAC)

An alternative to paying a large lump sum, the family can choose to pay the equivalent Daily Accommodation Payment (DAP). This could be considered as a rental payment. Any payment of daily accommodation payments is not returned to the resident or the estate when the resident has left the aged care home.

For residents with lower means, the Commonwealth will ask the resident to contribution to the daily accommodation payment.

Extra Service and Additional Service Fees

The aged care provider may charge the resident for extra or additional services.

Extra Service Fee

The aged care provider may charge the resident a fixed daily fee for upgrades to furnishings, or wine with the meals.

Additional Service Fees

The aged care provider may also charge the resident for additional services such as additional physiotheraphy services.

Next Step ?

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Understanding Your Options

Our family information session will provide you with up-to-date and unbiased information about your local residential care options.

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Finding the Right Aged Care Home

Our facility shortlist will help you match the right aged care home to your individual needs and preferences in a timely manner.

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Negotiating the Accommodation Deposit

Our RAD Negotiation service has helped many families reduce the accommodation cost and additional service fees.

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Senior Relocation Management Services

Our personalised Senior Move Management service will help you to carefully disperse, pack, arrange transport and unpack.

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