At Estia we understand that moving into aged care is a major investment - both financially and emotionally. That's why we take extra steps to ensure that the application process is as seamless and simple as possible.
Within Australia’s aged care system, there are a few different fees you may be required to pay:
a) Room price: set by the aged care provider
b) Daily Care Fee: set by the Australian Government
c) Means Tested Care Fee: set by the Australian Government
d) Other fees: set by the aged care provider
Not all fees necessarily apply to everyone, and while we can provide an outline to the different fees, we recommend you seek independent financial advice.
Room price is for your accommodation in the home. Some people will have their accommodation costs met in full or in part by the Australian Government, while others will need to pay the accommodation price agreed with Estia. The Department of Human Services will advise which applies to you based on an assessment of your income and assets. Please note that if you are a member of a couple, half of your combined income and assets are considered determining your eligibility for Government assistance with accommodation costs.
There are four room pricing options to consider when entering into aged care:
1. Refundable Accommodation Deposit (RAD)
The RAD is paid up front, guaranteed by the government and is fully refundable upon departure.
If you leave your Estia home, the RAD will be refunded to you, or paid to your estate.
The Australian Government guarantees the repayment of your Refundable Accommodation Deposit if an aged care home becomes bankrupt or insolvent and is unable to refund the balance of your lump sum.
2. Daily Accommodation Payment (DAP)
You may choose to pay by DAP, a monthly amount calculated using the government’s maximum permissible interest rate (MPIR). For example, RAD x MPIR / 365 = DAP.
3. Combination of both
It’s also possible to combine the two payment methods above to fit your budget.
4. Combination with the DAP (and other charges) drawn down from the RAD
In this scenario residents may wish to have the DAP (and any other charges i.e. additional services) drawn down from the paid RAD.
The standard Daily Care Fee is set by the government and funds the cost of services provided by your home, such as meals and refreshments, personal care (such as bathing assistance etc), recreation activities, laundry, physiotherapy and other included therapies, heating and air conditioning, cleaning, and nursing care.
The maximum Daily Care Fee is approximately 85% of the single basic Aged Pension, which is reviewed every March and September by the Australian Government.
This is an additional contribution towards the cost of care that some people may be required to pay. The Department of Human Services (Centrelink) will work out if you are reqired to pay this fee based on an assessment of your income and assets and will advise you of the amount.
Additional fees may apply and these vary from home to home. Our Estia team can give you details of all the fees that apply.
We recommend that you seek independent advice from an aged care financial planner with the knowledge and experience to help you make a decision that works best for you and your family. The www.myagedcare.gov.au website is also a valuable resource.
If you wish to talk with one of our admissions team please contact us and we’ll call you at a time convenient to you.