Cost of Aged Care & Payment Options


The costs associated with residential aged care are made up of three main components. Depending on your financial situation you may be asked to pay one or more of following costs.

A Basic daily fee

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

A Means-Tested care fee

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. You can download the Combined Assets and Income Assessment form from the following link Department Health and Ageing

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

important information

Before you can apply to live at an accredited government-funded aged care home, you will need to be assessed by the Aged Care Assessment Services (ACAS). The assessment can be arranged by speaking to your GP or you can contact the ACAS team directly on 1800 200 422

Once your application for Residential Care has been approved by the ACAS team, you can start applying to homes. You can also find out about residences in your area of choice through the My Aged Care Website

An Accommodation payment

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).

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

  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.

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

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