Moving into residential aged care for the first time can be an emotionally difficult period for you and your family, and the fees can appear confusing.
We believe it is important that you understand the cost of residential aged care and what you’re entitled to. There is a lot of information to be absorbed and it can sometimes be overwhelming. Therefore, this page is designed to help you familiarise yourself with the various terms used and the fees and charges associated with residential aged care.
Types of fees
There are several costs associated with permanent care in Aeralife aged care homes.
Basic daily care fee
An amount that everyone pays for the day-to-day services they receive at the aged care home.
Aeralife Advantage Package
All Aeralife aged care homes include Additional Services that go beyond the minimum care and service requirements and has been bundled into our Advantage Package and applied as a daily fee.
Means tested care fee
A contribution that some people pay toward the cost of their care, determined by a means assessment by Services Australia.
Accommodation costs
An amount that some people pay to contribute towards or cover the full costs of their room, depending on their means assessment.
Basic daily care fee
The basic daily care fee is payable by all residents for the day-to-day services they receive at the aged care home. It is currently $63.57 per day and is indexed by the Commonwealth government each March and September.
Aeralife Advantage Package
All our residents benefit from additional services, goods and services which are provided at an affordable rate in addition to the standard services provided by all aged care providers. Our additional services vary at each Aeralife residence. Please view the Advantage Package fees for each of our homes on their individual pages.
- Package value
- Package standard
- Package respite
- Package concessional
Means tested care fee
Residents (other than respite residents) may be asked to pay a means tested care fee depending on their income and assets.
The Commonwealth government sets the amount a resident must pay (based on both your income and assets direct to the aged care provider) and reduces the care subsidies paid to the provider by the same amount.
The means tested fee is reviewed each quarter by the Commonwealth, based on income and asset information held by Centrelink or Veterans’ Affairs. However, this fee is capped at the means-tested amount or the cost of your care, or the annum cap, whichever is the lesser. The fee is subjected to a lifetime cap.
For your means tested fee to be calculated correctly: Please complete a Request for Income and Asset Test for Aged Care form. It is not compulsory to complete this form, but if you do not you may be asked to pay the full cost of your care.
You will be advised of the correct means tested fee by the government shortly after your admission.
Accommodation payment
We encourage potential residents or their families to contact us to discuss options for their accommodation payment.
Ways to pay
Residents can choose to make their accommodation payment in one of three ways:
A Refundable Accommodation Deposit (RAD)
You can pay the room price in full as a lump sum amount. This amount is held by the home for the duration of your residency, and is fully refundable to you when you leave, unless you choose to have any of your fees and charges deducted from the RAD.
A Daily Accommodation Payment (DAP)
You can choose not to pay the lump sum amount, but have a daily interest equivalent amount added to your monthly fees.
A combination of RAD and DAP
If you have less than the full accommodation payment in spare assets you could still pay the room price by choosing a combination payment by paying a portion as a RAD lump sum amount, and the remaining balance as a DAP equivalent.
This is a sample price breakdown only
Accommodation type
Single
Occupancy
1
Suite size
25 — 92m2
Bathroom
Private ensuite
Maximum Refundable Accommodation Deposit (RAD) (per resident)
$450,000
Maximum Daily Accommodation (DAP) (per resident) @ 8.36% MPIR
$125.67
50% Combination RAD and DAP
$225,000 RAD and $51.41 DAP
Should I seek financial advice?
Aeralife encourages you to seek independent advice from a financial planner with expertise in resident aged care regarding your personal circumstances.
The DHS offers a free Financial Information Service (FIS).
Call 132 300 for access.
A list of some financial planners specialising in aged care is available at:
My Aged Care
