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Understanding the costs of residential aged care

Depending on your financial situation, you may need to pay one or more fees to cover your care. Review our guide to see which fees apply to you

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The Commonwealth Government subsidises a number of aged care services but if your circumstances allow, you may be expected to contribute financially. Fortunately, there are protections in place to make sure your care remains affordable.

1. Basic Daily Fee
  • Anyone entering aged care will be asked to pay.
  • Covers your day-to-day living costs, including services such as meals, cleaning and some utilities.
  • Calculated at 85% of the basic rate of the single aged pension, currently $53.56 per day.

2.  Means-tested care fee
  • An amount based on your current income and assets.
  • Contingent on an Income & Assets Assessment by the Department of Human Services.
  • Annual and lifetime caps apply.

These costs apply to your accommodation expenses. Some people may be covered by the Commonwealth Government, whilst others will be required to pay an amount agreed with their aged care residence. To keep things flexible, there are three main ways for you to pay:

1. Refundable Accommodation Deposit (RAD)
  • A lump sum paid as you enter your residence or within six months of entry.
  • A fully refundable remaining balance when you leave.

2. Daily Accommodation Payment (DAP) 
  • A daily fee paid at set periods (usually monthly) during your time in the residence.
  • All DAPs are non-refundable.
  • The DAP is calculated by multiplying the applicable Maximum Permissible Interest Rate (from 1 October 2021 currently 4.01%) by the portion of your agreed RAD amount, and dividing this by 365.

3. A combination of RAD and DAP
  • Pay a percentage of an agreed amount upfront as a RAD and then pay the rest over a set period as a DAP.
  • Flexibility to choose your RAD to DAP ratio.
  • The higher your RAD, the lower your DAP—the Maximum Permissible Interest Rate will be applied to the DAP unpaid amount.

You may be expected to contribute financially.

1. Fees for other services
  • This covers optional services as agreed by you and your residence.
  • These will vary from residence to residence.

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Your individuality, wellbeing and independence always come first, so take a look at our range of residences to select the one that's right for you.

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