How much does aged care cost?

The Australian Government funds the bulk of aged care in Australia. However, if you are able, you may be asked to contribute to the cost of your care.

Residents who enter aged care in Australia are required to pay:

+ care fees
+ accommodation fees
+ optional extras

Depending on the resident’s financial circumstances they may be eligible for Government assistance towards their costs. Some people are only required to pay the Basic Daily Fee, which is 85% of the pension.

Care fees

These fees are determined by the Government and cover the cost of nursing care, meals and housekeeping services.

They include:

Basic Daily Fee for aged care
Basic Daily Fee for aged care

The Means Tested Care Fee is indexed and capped annually ($27,232.33), and over the lifetime of a resident ($65,357.65)*.

*Correct to March 19, 2019

Accommodation Fees

This will differ depending on the type of room you choose. Prices are usually advertised on an aged care organisation’s website.

You can pay in three different ways:

1. A Refundable Accommodation Deposit (RAD)

This is a lump sum, and the balance is refunded when the resident leaves our care, minus any agreed deductions eg. $300,000

2. A Daily Accommodation Payment (DAP)

Instead of paying a lump sum you can pay a daily fee based on the RAD, charged at the Maximum Permissible Interest Rate (currently 5.96%).

Eg. $300,000 x 5.96% / 365 = $48.99 per day

3. Any combination of both

Pay part Refundable Accommodation Deposit and part Daily Accommodation Payment.

Eg. Half of $300,000 + $150,000 x 5.96% / 365 =

$24.49 per day

*The MPIR is updated quarterly. Correct as of October 1, 2018- December 31, 2018

Optional extras

Depending on the Home the resident may have to pay extra for services such as telephone, hair appointments and allied health services such as dental, podiatry etc.

 

What if I have no assets?

Christadelphian Aged Care offers fully Government-funded places for residents without assets. If they are eligible they only have to pay the Basic Daily Fee, which is 85% of the pension. The covers all care and accommodation costs.

What does Living Longer Living Better mean?

When the Living Longer Living Better aged care reforms became effective from 1st July 2014, residents who enter into care with Christadelphian Aged Care will have the choice of paying a Refundable Accommodation Deposit (RAD), a Daily Accommodation Payment (DAP) or a combination of both on a Bed Price. Residents have 28 days after entry to decide their choice of payment.

Christadelphian Aged Care, as per Government requirements have advertised on our website, the maximum amount to be charged for each group of rooms at each Home. RADs are completely negotiable. We suggest you compare similar aged care services within the locality suitable for you needs, and contact us to discuss your options.

What are the Basic Daily Fees?

Basic daily fees are payable by all residents regardless of income and assets. They cover daily living expenses such as food, electricity and laundry services. They are set at 85% of the single aged pension and are currently charged at $50.66 per day (20th September 2018 – 19th March 2019) They are indexed quarterly to CPI.

What is a Refundable Accommodation Deposit (RAD)?

A Refundable Accommodation Deposit (RAD) is a lump sum of money payable for the room you will live in. This will be refunded to the resident (or estate) upon the termination of the resident agreement, after any agreed deductions have been drawn down.

If any amounts are drawn down, the daily accommodation payment will be increased by an amount that compensates for the impact of receiving lower earnings due to the decreasing refundable accommodation payment balance.

The price of the RAD depends on the room you choose to live in. All prices are advertised on our website, and are negotiable.

What is a Daily Accommodation Payment (DAP)?

A Daily Accommodation Payment (DAP) is a daily fee you can pay instead of a RAD, or in combination with a RAD. It is calculated by converting the RAD into a daily charge using the maximum permissible interest rate (MPIR).

Eg. A RAD of $300,000 would convert to a DAP of $48.99 per day ($300,000 x 5.96% / 365).

 

What is the Maximum Permissible Interest Rate (MPIR)?

Interest rates are determined the Australian Government and updated quarterly. Currently set at 5.96% (1/10/18 – 31/12/18)

To calculate the DAP, multiply the RAD for a room by 5.96% and divide by 365.

For example, a RAD of $300,000 becomes a DAP of $48.99 per day ($300,000 x 5.96% / 365).

What is the Government accommodation supplement – Means Tested Care Fee?

The Government will continue to pay a supplement to Christadelphian Aged Care for residents who they have assessed as being eligible for the accommodation supplement. Eligibility for residents entering care after 1 July 2014 will be determined under new means testing arrangements involving a combined income and asset test. The Government will either pay the maximum accommodation supplement or a part accommodation supplement, depending on the resident’s assessed financial circumstances.

This is currently set at $27,232.33 (indexed) per annum including ITF for Home Care during the year OR currently $65,357.65 (indexed) over a lifetime including ITF paid for Home Care. This is charged on top of Daily Accommodation Payment (DAP) and reset each financial year.

When is the Refundable Accommodation Payment balance returned?
  • The person being cared for passes away, or
  • The person being cared for ceases to be provided with residential aged care within the facility, or
  • The care facility ceases to be certified under the Act

Publication of accommodation prices and details helps foster greater transparency and supports consumers to make informed choices about their care.

Christadelphian Aged Care looks forward to assisting you to progress through these Governmental changes to residential aged care (from 1st July 2014) securing the best possible solution for your care and financial requirements.

 

What is Extra Services?

Extra Services

Some Homes offer Extra Service places, for people seeking a premium aged care experience.

These places incur an extra daily fee, and may include:

• Ensuite rooms with superior furnishings and decor
• Massage therapy
• Physiotherapy
• Podiatry
• LCD televisions with Foxtel
• Choice of menu and wine with dinner
• Complimentary phone service
• Wi-Fi service
• Daily newspaper delivery
• Weekly hairdressing services

Our Gladesville (Ashburn House) and North Parramatta (Courtlands) Homes offer Extra Service places.

Things to consider

Moving into residential aged care or a retirement village is a major decision both personally and financially. For your own peace of mind, we recommend that you consider the following:

 

  1. Getting some independent financial advice

There is a free financial information service available through Centrelink, which provides information including how the pension and assets tests operate, and basic information about taxation matters.

Call 13 23 00 or refer to their website www.centrelink.gov.au

Alternatively, there are many independent financial advisors who specialise in aged care advice. Refer to the phone book or an internet search.

 

  1. Arranging for a power of attorney and enduring guardianship

There are good reasons for ensuring that you have arranged for a family member or close friend to make decision on your behalf, outlined in the attached document.

We recommend that everyone entering into residential aged care or a retirement village has appropriate arrangements in place.

If you do not currently have a legal adviser and would like assistance contact us and we can help arrange for this to be done independently, free of charge.