We at Care Guidance support families on the journey to residential aged care through our free concierge service. Once we understand more fully the family needs, wants and financial situation we create a short-list of aged care options that will meet the following key criteria:
we will make sure any home we recommend is aware of the individual care needs and can deliver appropriate, quality care in line with those needs.
we will ensure our recommendations will include only homes that meet the elderly’s’ budget and will negotiate costs with the homes. We also assist “fully supported” residents.
we will recommend homes that are in an area to suit you’re the family so the visits are as convenient as we can get them. In producing this short list we work with aged care provider to prequalify their homes to ensure they are both appropriate and willing to accept the resident. We understand the preferred location that fits the family for visitation and to avoid loneliness once placed into a home.
we take into account the residents lifestyle priorities as much as we can when creating the short-list of aged care options
Once a home is selected, we will work through the admissions paperwork with the family, including reviewing the agreement.
The main issues around aged care costs below – please note: it’s a general explanation only and we can discuss it again as applicable to the families situation. This is applicable if/when the family decide to enter the residential aged care facility.
Costs of aged care fall into three groups:
1. Daily fees levied by the home, which are:
a. The Daily Care Fee, currently $52.73. This is set at 85% of the pension.
b. Additional Service fees which some, but not all, homes charge for extra lifestyle services (varies from $10-$50 per day depending on home and location).
2. The room deposit, called the Refundable Accommodation Deposit (RAD), which can be paid:
a. As a lump sum or in part only. It is up to you whether or not you pay the RAD in full, a provider may not insist you pay the full RAD.
b. Any unpaid RAD is in a sense notionally lent to you by the home and you will be charged interest called the Daily Accommodation Payment (DAP).
3. The DAP is calculated using the formula: RAD x Interest Rate/ Days of the year; so for an example a RAD of $800,000 would have a DAP on the whole balance of $89.86 ($800,000 x 4.1% / 365).
If $600,000 of the RAD was paid the DAP would be $22.47 ($200,000 x 4.1% / 365).
- You can also pay the DAP by doing what is called a ‘DAP off a RAD’ or a ‘DAP Drawdown’. Using the example above if you paid a RAD of only $600,000 you could take the $22.47 DAP being charged on the unpaid RAD from the RAD you have paid, so at the end of the year the RAD balance would be $591,800 (being $200,000 less the annual DAP of $8,200, or $22.47 x 365).
- Once the RAD is paid in full there is no DAP.
- The Government’s means tested fee.
This is a government fee levied on RAD payers and is assessed by Centrelink.
There is a Centrelink form called the “Residential Aged Care Property details for Centrelink and DVA customers form” (SA485) which can be found at https://www.servicesaustralia.gov.au/individuals/forms/sa485.
The government can take several weeks to process these forms and advise the fee, but you can get an estimate using the government’s My Aged Care estimator found at https://www.myagedcare.gov.au/fee-estimator?fe_type_of_care=age_home_care.
Do ensure you are on the Aged Care Homes tab. Please note: this form will need to completed to advance admissions. Our social workers step the family through these steps.