Aged Care Fees
Moving into any residential aged care facility may require one-off payments or deposits, as well as ongoing aged care fees that cover care, accommodation and daily living expenses. How much each resident pays is dependent upon their individual financial situation and is determined by a Combined Assets and Income Assessment that each resident must complete (or have completed on their behalf).
The Australian Government establishes the maximum aged care fees and has put strong protocols in place to ensure that anyone in need can always access care. At Hardi Aged Care, we welcome all prospective residents regardless of their financial situation.
Within residential care, there are four aged care fees that each resident may be charged:
- Basic daily fee;
- Refundable Accommodation Deposit (RAD)/Daily Accommodation Payment (DAP) or Refundable Accommodation Contribution/Daily Accommodation Contribution;
- Means tested care fee; and,
- Extra services fee.
For advice on aged care fees and payments, and how it may affect your personal situation, we recommend seeking independent financial advice. A financial service provider versed in the aged care system can look at your individual situation and tailor a financial plan to suit you.
Basic daily fee
Basic daily fees are paid to residential care providers to help cover the cost of daily living expenses, such as nursing, meals, laundry, heating/cooling and personal care.
The maximum basic daily fee for all aged care residents is 85% of the single basic Aged Pension daily payment rate. This fee is indexed twice a year in line with changes to the Aged Pension. An updated schedule of fees and services can be found on the Department of Health website. For some residents, this may be the only charge for residential care.
Refundable Accommodation Deposit/ Daily Accommodation Payment OR Refundable Accommodation Contribution/ Daily Accommodation Contribution
A Refundable Accommodation Deposit (RAD) or Daily Accommodation Payment (DAP) is an additional amount that a resident pays towards the cost of their accommodation in a residential aged care facility. Accommodation payments are different to basic daily fees and can vary between different providers. They may also vary from room to room at the one facility, dependent upon features of different rooms.
The Combined Assets and Income Assessment is the determining factor in whether someone will be required to pay a RAD or DAP. Some people who have low income and/or assets may be eligible to have their accommodation costs met in full, or in part, by the Government. Others with high income and/or assets will need to agree on an accommodation price with their facility of choice.
Each residential care facility must publish their accommodation price on the My Aged Care website and on their individual websites. At Hardi Aged Care we have a number of different accommodation prices at each of our facilities to suit all financial budgets. This pricing can be found on the individual web pages for each of our six facilities.
Each resident has the option to choose how they would like to make this payment. There are three options:
- a lump sum fully RAD;
- an equivalent DAP; or,
- a combination of both.
In some situations a resident may be eligible for Government assistance but based on their individual financial assessment, they are still also required to pay a contribution. This amount will be determined by the Government, and both the resident and their provider are notified of this amount.
As with the accommodation payment, the accommodation contribution can be paid in three ways:
- a lump sum fully Refundable Accommodation Payment;
- an equivalent Daily Accommodation Payment; or,
- a combination of both.
Means tested care fee
A means tested fee is an additional contribution towards the costs of a resident’s care. The Government determines whether an individual is required to pay this aged care fee based on their Combined Assets and Income Assessment. Each resident is notified of this amount.
A resident may be asked to pay a means tested care fee if:
- a combined assets and income assessment has not been submitted; or,
- the combined assets and income assessment shows that they have the financial capacity to make an additional contribution to the cost of their care.
In the event that a resident has not yet submitted, or has chosen not to submit, a combined assets and income assessment, they can be asked to pay a fee. This fee is equal to the cost of the subsidy the Government would normally have paid toward their care.
If a combined assets and income assessment has been submitted, then the fee an individual may have to pay will be the lower amount of either:
- the amount they are assessed as being able to contribute based on their income and assets; or,
- the cost of their care.
There are annual and lifetime caps that apply to the means tested care fee. When these caps have been reached, a resident cannot be asked to pay any more in means tested care fees. You can view the annual and lifetime caps on the My Aged Care website.
Extra services fee
This fee only applies to residents who have moved into one of Hardi Aged Care’s extra services units at either Blacktown or Seven Hills. It covers the additional luxury services residents can receive in an extra service unit. Importantly, this fee does not in any way reflect a difference in the level of care that is provided to every resident at Hardi Aged Care.