Investment

This fee covers living costs such as meals, power and laundry. For some clients this will be the only required fee payable.

This is a means-tested fee that is payable by some clients. It’s an additional contribution to the cost of the care you receive in a Residential Aged Care Facility.

Although this fee is collected by the aged care home it is paid to the government as a contribution towards the care you receive.

This is the cost associated with the accommodation, including the room that you will occupy. For some clients this cost is met in full, or in part by the government (based on an assessment of your income and assets).

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Residents can elect to make their accommodation payment in one of below four ways:

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1. A Refundable Accommodation Deposit (RAD). You may pay the room price in full as a lump sum amount. This amount is held by the facility for the duration of your residency, and is fully refundable to you when you leave.
2. A Daily Accommodation Payment (DAP). You may choose not to pay the lump sum amount, but a daily interest amount added to your monthly fees. The DAP is calculated using the maximum permitted interest rate which is set by the Australian Government.
3. A combination of RAD and DAP. You may pay any portion of the RAD via a lump sum amount, and pay the remaining balance as a DAP.
4. Drawdown. The drawdown is similar to a Combination Payment, but the Daily Accommodation Payment (DAP) is taken from your Refundable Accommodation Deposit (RAD). As a result, the refundable amount of your initial one-off lump sum payment (the RAD component of the accommodation cost) decreases over time.

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You will have 28 days from the day you entered care to decide on your preferred option of payment. Your accommodation costs will be charged as a DAP until such time you decide on your ongoing method of payment.

For more information please visit: www.myagedcare.gov.au