If you’re thinking about moving into Aged Care, it can sometimes be a little bit confusing to understand the costs that can be involved. You might have heard of different considerations, like daily fees, means testing, and accommodation fees, to name a few.
At TriCare, we believe in making this journey as transparent and supportive as possible for you. So we’ve broken down the costs below in a way that’s clear and open, so you have the information you need to make the best financial decision for you.
Breaking down Aged Care costs
Within Australia’s Aged Care system, there are four possible fees you may be required to pay. They are:
- Basic daily fee: This is a standard fee everyone in Aged Care pays, covering day-to-day services like meals, cleaning, and laundry. It’s indexed at 85% of the single retirement pension, making it manageable and within reach for many families.
- Means tested fee: The Australian Government has a process in place to make Aged Care accessible to everyone, no matter how much money or assets you have, so this fee is only for those who can afford it. The amount you’re asked to pay will depend on your financial assessment, which is performed by Services Australia in most cases (more about that in a moment).
- Accommodation fee: This fee will vary depending on the type of accommodation and location. You also have flexible payment options – a lump sum up-front payment (called a Refundable Accommodation Deposit, or RAD), daily payments (Daily Accommodation Payment, or DAP), or a combination of both. These options mean you can pay in a way that works best for you.
- Additional and/or extra services fee: These fees are for optional extras like higher room standards or additional services such as entertainment options and special food services. They’re like the cherry on top, offering more comfort and personalisation, but the level of care you receive always remains the same.
The first steps: getting assessed
If you’ve decided that Residential Aged Care is the best option for you, the first step is your Aged Care Assessment Team (ACAT) assessment. It’s a bit like applying for a passport – essential, and something you need to factor in when it comes to the time it might take. The ACAT assessment, which you can apply for through My Aged Care, is important because it determines your eligibility for government-funded care services. Think of it as your gateway to a range of support options tailored to your needs.
It’s important to get your ACAT assessment booked in as soon as possible. Although emergency ACAT assessments can be booked in within 48 hours, regular assessments can take up to six weeks, and then it can take another two weeks to receive the assessment report.
Means testing for clarity on Aged Care costs
Now, let’s talk about the actual costs of Aged Care. Some of the costs of living in residential Aged Care are based on your means, usually determined by Services Australia, or between your and your Aged Care provider.
To access any subsidies you might be entitled to, you’ll be asked to submit an Aged Care Calculation with your cost of care form (SA486) to Services Australia. You can complete this form online, print, sign, and send to Services Australia with your supporting documents.
Services Australia will review your financial situation and decide whether you’ll be asked to contribute toward the cost of your care.
If you’re applying for Respite Care, you may be able to use your home care package to cover residential care costs for this temporary duration. To find out if you’re eligible for residential Respite Care, call Carer Gateway on 1800 422 737. Commonwealth funding for Respite Care is available to eligible people for up to 63 days each financial year.
Note: For most people, the means assessment is done by Services Australia, but if you receive a means tested payment from the Department of Veterans’ Affairs (DVA), your assessment will be done by DVA.
Choosing the right Aged Care residence for you
Just like any other time you’ve been house hunting, every Aged Care residence is unique, and it’s best to look around to find one that suits you and your needs.
Some residences will cater to specialised and complex care needs, while others might be co-located with a retirement village to keep couples close to one another when they have differing needs.
At TriCare, our Aged Care Specialist Team is equipped to ask you the right questions and talk you through your options, to help you find the right place for you. They can also arrange a tour for you to have a look at your preferred residence.
Moving out: no fees or charges
If you decide to move out, whether it’s to another Aged Care Residence, in with family, or back into your own home, there are usually no fees or charges. This ensures that the transition is smooth and stress-free.
Want some help?
At TriCare, we understand that Aged Care is more than just a service – it’s about people, families, and finding the right support at the right time. Our goal is to provide transparency, support, and a sense of community, helping you navigate this important journey with confidence.
Our Aged Care Specialist Team is on hand to talk you through your ACAT assessment process, to answer your questions about means testing, and to help you find the right Aged Care Residence for you.
Call us at 1300 TRICARE (13008742273) and let us support you in making the right decision for the Aged Care experience you want.
