Navigating the costs of Residential Aged Care
Aveo supports all new residents and families with friendly and personal services to discuss their Aged Care needs. We will also assist any new residents in navigating the My Aged Care website at www.myagedcare.gov.au, which provides information about Aged Care and Aged Care services.
A basic breakdown of the fees and charges associated with Residential Aged Care at Aveo is provided on this page. Should you require any further information, our friendly staff are always on hand to help.
What fees are payable in Aged Care?
A basic daily fee (85% aged care pension): This covers living costs such as meals, power, cleaning and laundry.
Means-tested care fee: This is worked out by the Department of Human Services, and is a contribution towards the cost of your care. The Department of Human Services will work out if you need to pay this fee based on an assessment of your income and assets, and tell you the amount.
Accommodation costs: Some people will have their accommodation costs paid in full or in part by the Australian Government, while others will need to pay the accommodation price agreed with the aged care home. The Department of Human Services will tell you which applies to you based on an assessment of your income and assets.
Aged Care terms you need to know
Refundable Accommodation Deposit (RAD): A lump sum payment for accommodation in an aged care home. This is the price of a room (single occupancy), in lump sum form, that residents have agreed with their aged care home to pay. Residents can pay their accommodation price in full by RAD or they can pay via combination of a smaller RAD and Daily Accommodation Payment (DAP) or they can pay in full by DAP. If the residents and their aged care home agree, the resident can ask their provider to deduct certain amounts from the lump sum they have paid – for example for care fees. The RAD, minus any amounts deducted (as agreed), is refunded when the residents leaves the aged care home.
Daily Accommodation Payment (DAP): The daily payment for accommodation in an aged care home. The aged care home will work out the DAP based on a legislated formula that converts the RAD price to a DAP price. The resident makes this payment on a regular basis, up to a month in advance, similar to paying rent. The DAP is not refunded when the resident leaves the aged care home or decides to pay a RAD. The resident can choose to pay a combination of a RAD and a DAP for their accommodation costs. The resident can request the DAP to be deducted from any RAD they have paid.
Refundable Accommodation Contribution (RAC): Also a lump sum payment for accommodation in an aged care home, just like a RAD. The difference between a RAC and a RAD is that a RAC is the term used when a person who is receiving Australian Government assistance with their accommodation costs makes a ‘contribution’ towards their accommodation costs (with the Australian Government also making a contribution on their behalf). RAD is the term used when the person making the lump sum payment is not eligible for Australian Government assistance and is meeting the full costs of their accommodation on their own. The RAC, minus any amounts deducted (as agreed) is refunded when the residents leave the aged care home – just like a RAD.
Daily Accommodation Contribution (DAC): The daily contribution for accommodation in an aged care home that residents would need to pay, if they also receive Australian Government assistance with their accommodation costs. Residents make this contribution on a regular basis, up to a month in advance, similar to contributing to rent. The DAC is not refunded when the resident leaves the aged care home or decides to pay a RAC. Residents can choose to pay a combination of a RAC and a DAC for their accommodation costs.
The information on this page is intended for general information only. All statements of fact or opinion contained on this page (including as to pricing) are given in good faith and are believed to be complete and accurate as at June 2017, however are subject to change at any time without notice. Aveo Group Limited ABN 28 010 729 950, its related bodies corporate, its subsidiaries, directors, employees and agents (Aveo) do not represent or warrant that the information is or will remain accurate, complete or reliable or that the information on this page contains all of the details which a person may require to make a decision about whether to become a resident in the community. It is strongly recommended that you seek independent advice from your accountant, financial adviser and/or lawyer before entering into any agreement.