Choosing a Residential Aged Care Home is a big decision and it’s important to understand the costs and fees associated with care. To help you navigate the process, our friendly Juniper team are on hand to support you to understand the fees and make the process as smooth as possible.
Although the Australian Government provides funding for Residential Aged Care, you may be asked to contribute to the cost of your accommodation and care if you can afford to do so. The amount you pay and the level of Government assistance you receive is determined by an income and asset assessment.
Income and Asset Means Assessment
To access government subsidies that support:
Accommodation costs
Care services, including Everyday Living Costs and Non-Clinical Care Contribution
you will need to complete an assessment through Services Australia or Department of Veterans’ Affairs.
The government will issue you with a letter to confirm if you need to contribute towards Accommodation or Care services. The government will subsidise your Clinical Care regardless of your means assessment.
Aged Care fees
Accommodation costs
This is the agreed price you pay for your room in an aged care home.
The outcome of your government means assessment will determine how much you contribute towards your accommodation.
If you need to pay the full or partial accommodation costs you have options in how you make this payment:
- A lump sum payment or,
- Daily payment or,
- Combination of a lump sum payment and daily payment.
It is recommended that you seek independent financial advice to decide which payment option works best for you.
Lump sum payment
- Refundable Accommodation Deposit (RAD): This is when you pay the full amount yourself.
- Refundable Accommodation Contribution (RAC): This is when the government helps with the costs. It is based on the Daily Accommodation Contribution (DAC) determined by Services Australia.
If you choose to make a lump sum payment under the new Aged Care Act, providers will retain up to 2% per year for up to 5 years. These deducted amounts do not need to be refunded on exit.
Daily Payment
- Daily Accommodation Payment (DAP): This is when you pay the full amount yourself.
- Daily Accommodation Contribution (DAC): This is when the government helps with the costs. The amount is determined by Services Australia based on your means assessment.
Daily payments are not refunded when you leave care.
Combination of a lump sum payment and daily payment
You can choose to pay part of your accommodation costs upfront as a RAD and the rest can be calculated as a DAP.
Click here for Juniper Residential Aged Care Home Accommodation prices
Everyday Living Costs
Basic Daily Fee
Every person who enters permanent care pays a Basic Daily Fee. This is set at 85% of the basic single aged pension. The fee covers daily running costs such as laundry and cleaning.
The Basic Daily Care Fee is adjusted by the Federal Government each March and September in line with Age Pension increases.
Hotelling Supplement
This includes things such as catering, cleaning, and gardening. Your government means assessment will let you know if you can afford to contribute more towards everyday living costs.
Non-clinical Care Contribution
This includes bathing, mobility assistance and lifestyle activities. Your government means assessment will let you know if you can afford to contribute towards non-clinical care.