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FEES & ACCOMMODATION CHARGES – RESIDENTIAL CARE

 

Basic daily care fee is set by the government and published in the Schedule of fees and charges for residential and home care. For some people this is the only fee they are required to pay.

  • All residents pay the daily fee which is 85% of the single person rate of the Age Pension.
  • Contributes to everyday living costs including meals, basic toiletries, power, laundry, and personal and nursing care.
  • Is adjusted each March and September in line with the changes to the Age Pension.

 

Means-tested care fee is an additional contribution towards the cost of care that some people may be required to pay. This is not an additional fee to be kept by the Home. The additional fee is collected by the Home, who then pay this amount to the government.

  • Services Australia determines any means tested care fee by conducting a means assessment based on your income and assets.
  • Services Australia should provide you with a fee advice letter once their assessment has been completed.
  • Services Australia undertakes a quarterly review process (each January, March, July, and September) to advise adjustments to means tested care fees based on changing financial circumstances of the resident.

 

Accommodation payment or contribution some people will have their accommodation costs paid in full or in part by the Australian Government. Others will need to pay the accommodation price they negotiate with the facility. This is further explained below. An accommodation payment or contribution will only apply if the means (income and assets) exceed the thresholds determined by the government and published in the Schedule of fees and charges for residential and home care.

 

The MAXIMUM ROOM RATE at the Home is $300,000 with a Daily Accommodation Payment @ 1 April 2024 of $68.55 (per day) if you are a non-supported resident. The examples below provide more information.

 

Accommodation Payment Options (Applies to Non-Supported Residents)

 

The Daily Accommodation Payment (DAP) is payable unless and until a Refundable Accommodation Deposit (RAD) is paid. DAPs must not be required more than one month in advance. DAPs can be paid by the resident or drawn down from the RAD that the resident has paid to the provider if the resident has elected to pay a combination of a refundable deposit (also known as a Refundable Accommodation Deposit or “RAD”) and a daily accommodation payment (also known as a Daily Accommodation Payment or “DAP”).

 

Within 28 days after the entry date, the resident must choose to pay the RAD or accommodation contribution (if payable) by:

  1. daily payments (DAP); or
  2. refundable deposit (RAD); or
  3. a combination of refundable deposit (RAD) and daily payments (DAP).

 

Please note that after the 28 days, you will be charged the DAP from the date of entry until a lump sum (RAD) payment is made.

 

  1. Refundable Accommodation Deposit (RAD)

Is a once-off lump sum payment that is refunded when you leave less any monies owed. However, any amounts that you draw down from the lump sum payment (RAD) to cover other aged care costs will not be refunded.

 

  1. Daily Accommodation Payment (DAP)

Residents will have the choice to pay for their accommodation either as a refundable deposit (RAD), an equivalent daily payment (DAP) or a combination of both.

 

Is a daily amount (DAP) that is charged is worked out by applying the maximum permissible interest rate (MPIR) to the agreed room price. The MPIR is set by the Government and changes periodically.

 

The MPIR that applies when working out the DAP is fixed at the date you agree to a room price with EPOFH. Any changes that occur to the MPIR will not affect the rate that applies.

 

The resident must be left with $59,500 before being eligible to pay the refundable accommodation deposit.

 

All daily payments made must be paid in full on discharge and are non-refundable. Only the RAD actually paid less any monies owed is refundable.

 

Example 1: Room price of $300,000, no lump sum paid, the DAP is worked out as follows:

 

DAP = ($300,000 x MPIR) / 365 = ($300,000 x 8.34%) / 365   =   $68.55

 

  1. Combination (DAP + RAD) payments

Enables you to pay a partial lump sum and part daily accommodation payments. Only the RAD balance (less any monies owed) is refundable when you leave.

 

Example 2 –  Room price of $300,000, you can choose to pay a part RAD of $150,000 and a DAP based on the remaining $150,000. For this combination payment, the reduced DAP would be as follows:

 

Reduced DAP       = (($300,000 -RAD paid) x MPIR / 365 = (($300,000 – $150,000) x 8.34%) / 365

                                   = ($150,000 x 8.34%) / 365   =   $34.27

 

Note:      The MPIR used in example 1 and 2 (8.34%) assumes entry on 1 April 2024.

 

Accommodation Contribution Options

(Applies to Fully Supported Residents or Partially Supported Residents)

 

The Government will continue to pay a supplement to the facility for residents who are assessed as being eligible (means tested) 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 Home the maximum accommodation supplement or a part accommodation supplement, depending on the resident’s assessed financial circumstances. 

 

If a resident is assessed as eligible for the maximum accommodation supplement, the facility cannot charge the resident any additional amounts for their accommodation.  If they are assessed as eligible for a part supplement, the resident may be charged the difference between the assessed supplement amount and the maximum supplement for our facility. 

 

For example, if the resident is eligible to receive a supplement of $20 a day and the maximum supplement for the facility was $44.43 a day, then we can only charge the resident a Daily Accommodation Contribution (DAC) of $24.43 per day.

 

The resident can then choose to pay their contribution as either a Daily Accommodation Contribution (DAC), refundable lump sum (RAC), or combination of both if they wish. 

 

  1. Daily Accommodation Contribution (DAC)

If you are eligible for government assistance with accommodation costs, Services Australia will advise of the DAC that is payable. Please note that the DAC amount advised by Services Australia only applies if you choose to pay the accommodation entirely by daily payments.

 

  1. Refundable Accommodation Contribution (RAC)

If you choose to pay the accommodation contribution as a lump sum, then we will calculate the RAC that is equivalent to the DAC amount payable.

 

Example 3:   RAC = (DAC amount payable x 365) / MPIR = ($44.43 x 365) / 8.34%
= $194,447.84.

 

The balance of the RAC (less any monies owed) will be refunded on discharge.

 

  1. Combination Option – Refundable Accommodation Contribution (RAC) & Daily Accommodation Contribution (DAC)

If you are set a $24.43 per day DAC and choose to pay a part RAC (ie $20,000), then we will calculate the reduced daily accommodation contribution payments.

 

Example 3:   Reduced DAC = DAC amount payable – (Balance of RAC paid x MPIR) / 365
= $24.43 – ($20,000 x 8.34%) / 365 = $24.43 – $4.57 = $19.86 per day

 

Disclaimer The prices shown above relate to entry to the Home on or after 1 April 2024 and were last updated on 1 April 2024 and are subject to change.