This is the price for your accommodation. Depending on your needs, your accomodation cost my be met in full or part by the Commonwealth Government, while others will need to pay the accommodation price agreed of $350,000 with the aged care facility. Services Australia (Centrelink) will advise you which applies to you based on an assessment of your income and assets.
The accommodation payment can be made by way of a Refundable Accommodation Deposit (RAD) (traditionally called a ‘Bond’) or a Daily Accommodation Payment (DAP), or a combination of both:
Refundable Accommodation Deposit (RAD)
Residents with assets greater than approximately $197,000 and income over $32,000 may be asked to contribute to their cost of accommodation via the payment of a RAD (commonly referred to as a Bond), which is a lump sum contribution towards their cost of accommodation. The legislation states that on payment of a RAD, the resident must be left with a minimum of $47,500 in assets.
The RAD is refundable to the resident or Estate on departure and is guaranteed under the Aged Care Act, 2000.
Daily Accommodation Payment (DAP)
Residents may decide to pay for their accommodation via a Daily Accommodation Payment (DAP).
The DAP is calculated using the Commonwealth Government’s Maximum Permissible Interest rate (MPIR). As at 20 September 2023 the MPIR is 8.15%.
The Means-Tested Care Fee ensures that residents who have additional income and assets contribute to their care costs. The Commonwealth Government via Centrelink assesses all residents entering a Commonwealth-funded residential aged care facility.
Residents will receive information regarding their Means-Tested Care Fee obligations 7 days after the completion and lodgement of the “Permanent Residential Aged Care Request for a combined asset and income assessment”. If this assessment is not completed, then a higher Means-Tested Care Fee may be levied until such time as the information is provided to the Commonwealth Government. The Maximum Means-Tested Care Fee that a resident can be asked to pay per year is $30,574.33 with a lifetime limit of $73,378.49. This fee is calculated by the Commonwealth Government and on-charged by the aged care facility to the resident.
Residents are asked to sign a residential and accommodation agreement which outlines the details of the room along with the Charter of Aged Care Rights.