Fees & Charges as at 1st April 2024
Aged Care fees & charges
Fees and charges in residential aged care can be a daunting concept if aged care is a new experience for you. Below is a brief explanation of the fees and charges involved in aged care at Sunnyside House Inc (Sunnyside). However, for more information, please do not hesitate to contact us.
An Overview
Fees and charges in residential aged care vary depending on the individual requiring care, their personal circumstances and the facility in which they choose to reside. Unless seeking a financially supported accommodation, the fees generally involve:
- Basic Daily Care Fee
- Accommodation Payment
- Means Tested Care Fee
Basic Daily Care Fee
The government set basic daily care fee covers your day-to-day living costs such as meals, cleaning and laundry. Everyone in residential aged care is required to pay this fee. The daily care fee is set by the government based on 85% of the Age Pension and will change in relation to pension increases, currently 20 March and 20 September each year.
The current Basic Daily Care Fee is $61.96 per day.
Accommodation Payment
Depending on the applicant’s income and assets, an accommodation payment may be required. All Sunnyside House Inc. residential suites are valued at $350,000.00. The cost of the accommodation payment is dependent on the particular method which is chosen to pay this fee. The payment options are:
- Refundable Accommodation Deposit (RAD) Maximum $350,000
- Daily Accommodation Payment (DAP)
- Combination of RAD and DAP
While the resident has 28 days to decide the method of payment, and then a further six (6) months to pay a RAD, the resident must pay a DAP until the RAD is paid and this includes the first 28 days.
Refundable Accommodation Payment (RAD)
A RAD is a lump sum payment to the aged care provider, in this case, Sunnyside. The full RAD amount is refunded upon departure from Sunnyside and is 100% guaranteed by the government.
The RAD amount, unless otherwise indicated by the asset and income assessment by Centrelink (or Department of Veteran Affairs) is $350,000.
A Capital Refurbishment Fee, which enables us to maintain our facilities, is a daily fee which may be deducted from all RADs.
Daily Accommodation Payment (DAP)
As an alternative to paying your Accommodation Payment (RAD) as a lump sum, the fee can be paid in periodic payments, which are based on a daily fee and billed monthly in-advance.
The DAP is not refundable when you leave the aged care facility.
The DAP amount is based on the Maximum Permissible Interest Rate (MPIR), which is set by the government, and the agreed price of the room. To calculate the equivalent daily accommodation payment (DAP) the refundable accommodation deposit (RAD) is multiplied by the maximum permissible interest rate (MPIR).
The current MPIR (from 1st April 2024) is 8.34% per annum.
For Example: Maximum RAD $350,000 x 8.34% ÷ 365 days = $79.97 per day
Combination RAD/DAP
You can choose to pay part of your accommodation as a RAD and part as a DAP. DAP amounts will be calculated based on the outstanding RAD amount. Upon leaving the facility, your RAD amount will be refunded but not DAP payments.
For example: $200,000 (RAD) remaining balance in DAP $150,000 x 8.34% ÷ 365 days = $34.27
Means-Tested Care Fee (MTCF)
The Department of Human Services may charge a means-tested care fee for those residents in the financial position to contribute to costs related to care. The Department will determine, and notify, the amount if there is a requirement to pay this fee, which is calculated based on the assessment of assets and income as provided to Centrelink or DVA.
The means tested care fee that you pay will be between $0.00 – $478.01 per day.
There are annual and lifetime caps on the payment of the means tested care fee set by the government. The current caps are:
- Year: $33,309.29
- Lifetime: $79,942.44
Minimum permissible asset level
The minimum amount of assets a resident must be left with if they pay at least part of their accommodation costs by refundable deposit:
- $59,500.00
Financial advice
It is recommended that all prospective aged care residents seek financial advice from financial advisers who specialise in aged care.
Don’t forget to check your estimated fees on the myagedcare online fee estimator:
https://www.myagedcare.gov.au/how-much-will-i-pay
Download the Department of Health and Aged Care schedule of fees and charges here: