Residential Care – Fees and Charges Explained

The fees you may be asked to pay are:

Basic Daily Fee

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This is the minimum fee every resident is asked to pay, and it covers living costs such as meals, power and laundry. It is indexed at 85% of a standard aged pension. Pensioners continue to receive their fortnightly pension into their nominated bank account. Statements for payment of fees, usually by direct debit, are issued monthly.

Accommodation

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You are required to pay part of the cost of your accommodation in the Residential Care residence, and the Federal Government will pay the rest. The Department of Human Services will advise the amount which applies to you based on an assessment of your income and assets.

Means Tested Care Fee

Does not apply to Respite

The amount you pay will depend on your income and assets; however, there are limits in place.There are annual and lifetime caps that apply to the means-tested care fee. Once these caps are reached you cannot be asked to pay any more means-tested care fees.

Additional Fees for additional optional services

Additional fees may apply if you choose a higher standard of accommodation or additional services. These vary with providers. Your service provider can provide you with the details of the services and fees that apply.

The Australian Government pays for the bulk of aged care services in Australia through subsidies paid to aged care providers. The amount that consumers pay in fees will vary, and is subject to means testing of income and assets through the Department of Human Services. Consumers may be asked to contribute to costs if they are financially able to do so. Help is available if people cannot afford to pay for care and accommodation costs.

There are annual and lifetime caps that apply to the means-tested care fee for aged care.

The maximum annual means-tested care fee you can be asked to pay each year is $26,041.09. This cap is indexed. Once this cap is reached, you cannot be asked to pay any more means-tested care fees until the next anniversary of the date of your first entry into an aged care home. You may still be asked by your service provider to pay the basic daily fee and your agreed accommodation costs.

The maximum means-tested care fee you may be asked to pay in your lifetime is $62,498.66. This cap is indexed. When you have reached this lifetime cap, you cannot be asked to pay any more means- tested care fees. You may still be asked by your service provider to pay the basic daily fee and your agreed accommodation costs

Any income-tested care fee paid in a Home Care Package will also count towards your annual and lifetime caps. The Federal Government will pay your means-tested care fee for you after you have reached these caps. The Federal Government will notify you and your service provider once you have reached the annual or lifetime cap.

My Aged Care Website

The My Aged Care website at www.myagedcare.gov.au provides information about aged care and aged care services. It includes information about fee arrangements for aged care.

If you prefer to speak with someone about residential care services and fee arrangements or receive an estimate of fees you may be required to pay, telephone 1800 200 422.

Fact Sheets

Fact sheets about aged care can be downloaded from the Department of Health website and the My Aged Care website.

These provide an overview of the fee arrangements, as well as some simples examples.