Aged Care Fees
What Fees May Apply to Cover Your Permanent Residential Care? Read below for a summary of the prospective fees that are associated with entering into aged care.
Government Fees
A number of aged care services are subsidised by the Commonwealth Government. However, depending on your circumstances, you may be expected to contribute financially.
Basic Daily Fee
When entering aged care, this is a standard fee which applies to all individuals. This fee covers your daily living costs such as meals, cleaning, and some basic utilities.
Currently this is calculated at 85% of the basic rate of the single aged pension of $56.87 per day ($20,757.55 per year)
Means-Tested Care Fee
This fee is dependent on your Income and Assets Assessment by Services Australia (formerly Department of Human Services/Centrelink) and is based on your current income and assets. The maximum daily fee is $358.41. There are annual and lifetime caps on means-tested care fees.
The maximum an aged care facility can charge is:
$30,574.33 per year; or
$73,378.49 in a lifetime
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Income below $30,204.20
Assets below $55,000
Accommodation fees paid by Australian Government.
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Income between $30,204.21 - $76,170.13
Assets between $55,001 - $186,331.21
Accommodation fees are jointly funded by individual and Australian Government.
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Income above $76,170.12
Assets above $186,331.20
Full accommodation fees paid by individual.
Accommodation Fees
Refundable Accommodation Deposit (RAD)
This is a lump-sum payable upon entering an aged care facility or within 6-months of entry. The deposit is a standard room price set by the respective aged care facility. The remaining balance is fully refundable.
Daily Accommodation Payment (DAP)
This is a daily fee which is invoiced monthly (depending on the facility) during the period in residence. It’s calculated by:
RAD x current government interest rate
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Number of days in a year