Residential Aged Care Fees – 20 September 2023
Residential aged care payments with Maurice Zeffert comprise a daily care fee and your room payment. The amount you pay and the level of Government assistance you receive is determined by a Centrelink assessment.
Fees and charges are governed by the Government Department of Health and subject to change from time to time.
A means test, combining both income and assets will be conducted by the Department of Human Services (Centrelink) and this will be used to determine the fees and charges payable by a resident.
Some people will have their accommodation costs met in full or part by the Australian Government, while others will need to pay the accommodation price agreed with the aged care home. Centrelink will advise which applies to you based on an assessment of your income and assets.
A fee estimator is also available at www.myagedcare.gov.au to estimate what fees you will be eligible to pay based on your individual financial circumstances.
Basic Daily Fee
This contributes to your daily living expenses, these include food and refreshments, toiletries, cleaning, linen and laundry services, and utilities and amenities.
The basic daily fee is 85% of the current basic single aged pension payable by all residents regardless of their financial status.
The government sets the price on 20 March and 20 September each year, changing in line with increases to the age pension.
Depending on your circumstances and Income and Asset financial assessment, you may wish to make a lump-sum payment, a daily installment (much like a rental-style payment); or a combination of both.
If you can afford it, you are expected to pay for your room. However, help with some or all of the accommodation costs is available to those that need it, meaning you could be asked to pay a contribution to the room or have the full costs paid by the Australian Government. This is determined by your income and assets assessment.
RAD: The Refundable Accommodation Deposit (RAD) is the lump sum payment for accommodation and is fully refundable when you leave the facility.
The Daily Accommodation Payment (DAP) is calculated as a daily cost that is charged if the RAD has not been paid. The DAP is calculated as per the current interest rate on the date of admission.
For instance, the DAP on a $550,000 RAD at 8.15% would be $122.80 per day. (Calculated as $550,000 x 8.15% ÷ 365)
Combination of RAD and DAP
You can choose to pay a combination of a RAD and a DAP.
For example, on a room price of $550,000 you may choose to pay a refundable deposit of $275,000 upfront and the remaining $275,000 as a DAP. The DAP payable would be $61.40 based on interest rate of 8.15% (Calculated as $275,000.00 x 8.15% ÷ 365)
How you pay is entirely up to you, some people choose to make a smaller lump sum and a larger daily payment or the other way round.
As a not-for-profit community benefit organisation we are proud to be inclusive of people of all means.
Means Tested Care Fees
The Means Tested Care Fees are an additional amount you may be asked to pay depending on your Income and Asset Assessment. The Government sets the amount a resident must pay direct to the aged care provider.
This contribution is calculated by Centrelink or the Department of Veteran Affairs and is capped on an annual and lifetime basis.
You can use the My Aged Care Fee Estimator to give you an estimate of what your fees could be when entering into Residential Aged Care.
At Maurice Zeffert Home we have different accommodation options available based on the level of care required by the resident with standard pricing throughout dependent on clinical requirements.
The above information is provided as a guide only and is not intended to replace independent financial or legal advice. Further information can be obtained via www.myagedcare.gov.au