Understanding aged care costs
In Australia, the Government pays for the majority of aged care costs, but you will be asked to contribute to the cost of your care if you can afford to. This may require a one-off payment or deposit, as well as ongoing fees for your care, accommodation, and daily living expenses. How much you pay will depend on your financial situation.
We’ve broken the main fees down to help you understand what they mean.
Aged care providers set and publish the maximum Accommodation Payment they will charge for each room they offer. To protect consumers, your Centrelink Means Test and Assets Test will determine the maximum amount you can pay.
An Accommodation Payment is paid as a Refundable Accommodation Deposit; as a Daily Accommodation Payment; or as a combination of both. You can choose how to pay, and we recommend you get professional advice from an independent financial adviser who has expertise in aged care when making this decision.
You have 28 days from the day you move into our home, to decide upon your preferred method of accommodation payment. Until you make this decision, your accommodation costs must be made as DAP payments.
Daily Accommodation Payment (DAP)
As the name suggests a DAP is an accommodation payment paid on a daily basis by invoice. It is calculated using a formula and interest rate set by the government. This payment is not refundable. The DAP is published by every aged care provider for each room type they offer.
Refundable Accommodation Deposit (RAD)
A RAD is an accommodation payment that is paid in a lump sum. Once you choose to pay a RAD, you’ll have 6 months in which to pay it. When a resident departs from an aged care home, their RAD is fully refunded to them or their estate. The RAD is published by every aged care provider for each room type they offer.
Basic Daily Fee
For residential aged care, this is the basic fee that everyone pays when moving in. It is set by the government on the 20 March and 20 September each year. The basic daily fee is 85% of the single aged care pension. Prices are published on the Department of Health Website.
Means tested care fee
A means tested care fee is an additional contribution towards the cost of care. The government determines how much you need to pay based on your Assets Test and Means Test, which must be completed by Services Australia. They will inform us in writing of your means tested care fee and will also write to us to inform us of any changes in the future.
Additional Services
Describes any service offered by an aged care home that is lifestyle or accommodation related in addition to their basic offering. Additional services are charged at a fee set by the aged care provider and are independent of legislated aged care accommodation and care fees. Narangba Aged Care has a package of Additional Services that must be agreed to as a condition of living at the home. We encourage you to talk to our managers about what we offer.