Understanding Aged Care Costs

 

New government legislation affecting the cost of aged care was introduced on 1 July 2014.

Due to the new legislation, it is quite complex to determine specific costs involved. At Olivet, we would be happy to assist you through this process when you call or visit us.

Olivet charges fees for its services, based on standard rates regulated by the Commonwealth Government. Fees vary depending on the financial situation of the individual and are determined by a Centrelink assessment.

There are three parts to the fee structure applicable when entering permanent residential care:

1. Basic Daily Fee
Based on 85% of the single pension, the basic daily fee contributes to daily cost of living expenses. All residents, regardless of their income/assets, will pay this amount. 

2. Means Tested Care Fee
Based on an assessment of both income and assets as
determined by Centrelink, this determines how much the resident is able to contribute to the cost of their nursing/medical care. (the Centrelink form can be found here)

3. Refundable Accommodation Deposit (RAD) or Daily Accommodation Payment (DAP)
This fee contributes towards the cost of accommodation, and is dependent on the resident’s assets/income. If the resident is assessed as having sufficient assets/income then a RAD or DAP will be required.

The lump sum accommodation deposit (RAD) is fully refundable, but a daily accommodation payment (DAP) is not.  The DAP is, in effect, interest payable on the lump sum not yet paid.  A combination of both methods of payment is also possible.

A resident with minimal assets may not be required to contribute much, if at all, towards their accommodation costs. Please contact us for further details.

Additional Fees
Only applicable where the resident requests or agrees to additional services
(such as newspapers and hairdressing).

For more information please feel free to Contact Us. You can also find additional details surrounding the new legislation and the cost process through the Department of Social Services or myagedcare.gov.au.