Aged care home payments
Moving into aged care
When you move into an aged care home, the contribution that you are asked to make towards the cost of your accommodation and care will be based upon your circumstances. The amount that you will be asked to pay is regulated by the Australian Government’s Aged Care Act 1997.
Moving into an aged care home is a big decision and we believe that it’s important that you make an informed decision about what this will mean for you financially. Uniting encourages you to seek advice from your pension provider or independent financial planner.
Aged care home payments are broken down into two parts:
Accommodation payments are fees charged to cover the cost and upkeep of your room, and the many common areas you enjoy.
Many people are eligible for financial assistance from the Government to enter residential care. To find out if you are eligible for support, you will need to provide information to the Department of Human Services or Department of Veterans Affairs. Depending on the outcome of this assessment, your accommodation costs may be subsidised (partly or fully).
If you are required to contribute to the cost of your accommodation, you have the option to pay via a Refundable Accommodation Deposit (RAP), a Daily Accommodation Payment (DAP) or a combination of both.
A - Refundable Accommodation Deposit (RAD)
A lump sum payment that is fully refunded to you when you leave
B - Daily Accommodation Payment (DAP)
A daily payment that is billed to you monthly
A + B - Combination Payment Option*
A smaller RAD amount of your choice, together with a correspondingly reduced DAP
* If you choose the combination payment option, you can request for the Daily Accommodation Payment (DAP) component of your fees to be deducted from your Refundable Accommodation Deposit (RAD).
You have 28 days after you enter an aged care home to decide how you would like to pay for your accommodation. Uniting will charge the relevant Daily Accommodation Payment (DAP) fee until or unless a Refundable Accommodation Deposit (RAD) payment is made.
Daily care fees
As well as accommodation payments (if you need to pay them) you will also be required to pay a Daily Care Fee. Daily Care Fees cover the cost of the care and support Uniting provides to you, such as your personal and nursing care, meals, cleaning, laundry and more.
Everyone who lives in an aged care home in Australia must pay a Basic Daily Care Fee. For the majority of people, the Basic Daily Care Fee is based on 85% of the basic aged pension for a single person. Depending on your situation, you may also be asked to pay a Means Tested Fee. This fee only applies to people with higher levels of income and/or assets. Maximum annual and lifetime caps on the amount of Means Tested Fees you can be asked to pay apply.
To find out if you will be required to pay Means Tested Fees and whether you are eligible for financial assistance towards the cost of your accommodation, you will need to complete a Permanent Residential Aged Care Request for Combined Assets and Income Assessment form, and lodge it with the Department of Human Services or the Department of Veterans' Affairs.