Along the way, you’ll hear a lot of jargon about aged care, but the most important ones are:
Aged care assessment
To enter government-subsidised residential aged care, you must first be assessed by an Aged Care Assessment Team (ACAT). The assessment will also determine your eligibility for respite or a home care package.
Aged care facilities set the prices they charge for accommodation in different types of rooms. The facility must publish these prices, show the payment options and provide a description of the key features. Residents have a choice on how they pay for their accommodation – either as a lump sum (Refundable Accommodation Deposit (RAD)), a periodic payment called a Daily Accommodation Payment (DAP), or a combination of both.
Daily care fee
A fee paid by all residents which represents 85% of the full single aged pension.
Means tested care fee
This means-tested fee captures both income and assets. For new residents, both their income and assets are used to determine a ‘relevant means-tested amount’. An annual cap of $25,349.21 (indexed) applies to the means-tested care fee to protect residents with higher than average care fees. A lifetime cap of $60,838.12 (indexed) protects all residents who receive care for a longer than average period of time.
Fees for extra or additional optional services
Additional fees may apply if you choose a higher standard of accommodation or additional services. These vary from facility to facility.