Aged Care Costs
Aged Care costs are closely regulated and are clearly categorised. This means that a financial comparison should be quite straight forward.
The difficulty for residents and their families is getting to the bottom of how means testing will impact overall cost, and determining the best way to organise payments, assets and income to maximise entitlements and ensure costs can be met.
Accommodation costs are paid as:
- Refundable Accommodation Payment (RAD)
- Daily Accommodation Payment (DAP)
- A combination of both.
The Daily Accommodation Payment amount is based on the unpaid amount of the Refundable Accommodation Deposit and is charged like an interest rate.
Daily costs are made up of 2 parts:
- Basic Daily Fee
- Means-Tested Care Fee
The Basic Daily Fee is based on a rate of 85% of the single Age Pension
The Means-Tested Care Fee is worked out after an assessment of the resident's income and assets.
Extra Costs can be of different types
- Extra Service Fee
- Fees for optional services
Extra Service Fees will be levied at an agreed daily rate.
Optional service costs will be levied upon agreed use of services.