How do we start the process of moving to residential care?

 

Generally, the first step towards admission into care is to liaise with the Aged Care Assessment Team to obtain an ACAT assessment. This outlines your eligibility for aged care.

 

What are the costs associated with aged care?

 

There are several costs relating to aged care including an upfront payment called Refundable Accommodation Deposit (RAD) and/or Daily Accommodation Payment (DAP), a Basic Daily Care Fee, Means Tested Care Fee and an additional service fee.

 

What is a Refundable Accommodation Deposit?

 

A Refundable Accommodation Deposit (RAD) is basically a lump sum payment you make to the aged care facility for the room within aged care. This payment can be part or all of the amount payable and you will get the full amount paid back after moving out of the aged care facility or in the event of death.

 

What is a Daily Accommodation Payment?

 

Rather than paying the total amount for an aged care room upfront, you can pay the outstanding RAD amount as a daily cost based on a prevailing interest rate, a bit like an outstanding mortgage. Generally you can decide on the break down between a lump sum and ongoing payments when liaising with the residential aged care facility.

 

How much is a RAD?

 

A bit like real estate, a RAD can range in cost depending on where you wish to reside and can range from $250,000 - $750,000 and even more on some circumstances.

 

What is the Basic Daily Care Fee?

 

The Basic Daily Care Fee is a daily fee payable by anyone who resides in aged care and covers general living expenses.

 

What is a Means Tested Care Fee?

 

This is an additional fee payable on a daily rate and is based on means testing your income and assets.

 

What is an Additional Service Fee?

 

The aged care facility charges an additional fee for special or extra benefits or services you receive. The amount is specific to the facility in which you reside.

 

When do I need help with Aged Care?

 

Given the complexity that is Aged Care and all the financial aspects associated, it is important to seek advice as soon as there is consideration of entering into a residential aged care facility. Making the decisions around aged care comes with significant financial costs and obtaining the correct and prudent advice is vital in this process.