In standard Residential Aged Care, everyone pays a Basic Daily Fee. This fee helps pay for your day-to-day services such as meals, cleaning, facilities management, and laundry. Set by the Australian Government and indexed at 85% of a standard age pension, this fee applies to every day you are a resident.
An accommodation fee covers the cost of your room, bathroom facilities, and access to communal areas. Those with total assets below a certain amount and pensions as their only income may have their accommodation paid in part, or in full, by the government. You have three options to pay this fee – a Refundable Accommodation Deposit, also known as the RAD, a Daily Accommodation Payment, or DAP, or a combination of both. If you choose the RAD option, which is a lump sum payment, it’s important to note that it is Government Guaranteed, so if your chosen facility is government accredited and something goes wrong, you won’t lose your money. And, as the name suggests, the RAD is fully refundable at the end of the resident’s time in care.
If your financial circumstances allow, you may be required to pay a means-tested fee to contribute towards your living costs. The amount is determined by assessing your income and assets. If they are under the set threshold, it is unlikely that a means tested fee will apply.