Aged Care Fees, Accommodation and Services Summary
Your contribution towards the cost of care, accommodation and services is subject to your individual financial circumstances and is determined by the Government. Within Australia’s aged care system, there are four possible fees you may be required to pay:
- Care (set by the Commonwealth Government):
- Basic Daily Fee: Covers the basic living costs such as meals, cleaning, laundry, heating and cooling.
- Means-Tested Fee: Contribution costs based on an individual’s income and assets assessment.
- Accommodation, your choice of (set by the aged care provider):
Covers the cost of accommodation, such as your room, bathroom facilities and access to all communal areas.- RAD (lump sum)
- DAP (daily charge)
- RAD + DAP (combination)
- Additional and/or extra services (set by the Commonwealth Government and the aged care provider):
Covers items such as a higher standard of room features, entertainment equipment, food services such as alcohol and more menu options, newspapers or magazines, pay TV subscriptions and additional technology requirements.
Aged Care Fees Explained In More Detail
BASIC DAILY FEE – Set by the Government and is 85% of the single person rate of the basic Age Pension. This applies to all permanent and respite care residents. Everyone entering an aged care home is required to pay this fee.
MEANS TESTED FEE – The Department of Human Services (DHS) work out if mean tested care fees apply. Annual and lifetime caps apply†.
Until the determination is received from DHS, an interim fee of $25.00 will be charged to residents who have not presented a valid and current Australian Pension Card. Your account will be reconciled subject to the DHS advice once received.
ACCOMMODATION FEE – There are 3 ways to pay the accommodation fee. You will have 28 days after admission to notify us how you would like to pay your accommodation costs. Until you notify us you will be charged a Daily Accommodation Payment.
RAD – Refundable Accommodation Deposit Fee paid as a lump sum; you have up to 6 months to pay. A DAP will apply until paid.
DAP – Daily Accommodation Payment Fee paid as a daily payment, calculated using the Government approved interest rate. This rate will vary from time to time but is fixed at the date of admission.
RAD & DAP – Combination Payment This provides you with the opportunity to combine the lump sum and daily payment options.
ADDITIONAL AND/OR EXTRA SERVICES FEE – Extra services are hotel-type services, and a higher standard of room than basic aged care accommodation. It includes room features, entertainment equipment, and food services such as alcohol and more menu options. Extra service status varies by residence. Residents are required to pay a fee for these services as determined by the Department of Health*.
Additional services are also available. These are optional and agreed between the resident, or their representative, and the TriCare Aged Care Residence. Fees for additional services cover premium services such as newspapers or magazines, Pay-TV subscriptions or additional technology requirements. Costs vary based on the resident’s preference and location.
For more information please call 1300 TRICARE
My Aged Care – 1800 200 422 or visit www.myagedcare.gov.au
The Department of Human Services will advise which applies to you based on an assessment of your income and assets. To determine the contribution you may be required to make, or if your costs will be fully paid by the Government.
† There are annual and lifetime caps that apply to the means-tested care fee. Once these caps are reached, you cannot be asked to pay any more means-tested care fees. For current caps please refer to https://agedcare.health.gov.au/programs/ residential-care/residential-care-fees-charges-and-payments
* Australian Government Department of Health – https:// agedcare.health.gov.au/aged-care-funding/extra-servicestatus/listof-services-where-extra-service-is-in-operation.
For a detailed explanation of Services provided and the advantages it offers to residents, please see the TriCare Residential Aged Care Brochure.
