Everyone’s financial circumstances are different. Some people may be eligible to receive assistance towards the cost of residential care. To determine whether the government will contribute towards the cost of residential care, an income and assets assessment will need to be completed. This assessment asks different questions to identify the best support for you or your loved one.
Basic Daily Fee
This fee helps pay for your day-to-day services such as meals, cleaning, facilities management, and laundry. The basic daily fee is set at 85% of the single person rate of the basic age pension. The government updates it on 20 March and 20 September each year in line with increases to the age pension.
Care Fee
This fee is an extra contribution that some people pay, as determined through a means assessment. The care fee is different for everyone, and not everyone has to pay it. The care fee is not fixed when you enter an aged care home; it can change over time.
Accommodation Costs
Residents have an option of paying either a RAD (Refundable Accommodation Deposit) or a DAP (Daily Accommodation Payment which is an equivalent daily charge). The actual amount varies and is dependent on the room type. It is also possible to pay the accommodation costs as a combination of a RAD and DAP if that better suits a residents financial circumstances. It is advisable to seek advice from a financial planner who specialises in this area.
The DAP is calculated by applying an interest rate determined by the Government, referred to as the MPIR (Maximum Permissible Interest Rate) to the room price and then dividing this amount by 365.
Depending on the outcome of the income and assets assessment, some residents will have the accommodation payment covered in full or partially by the government. Others will need to pay the amount themselves.
These costs can be calculated by clicking on this button.