The Australian Government assists with the cost of your residential aged care, through the provision of funding to aged care residences. However, the Government also expects those who can afford it to contribute to the cost.
There are four main payment options associated with residential aged care in Australia:
1. Basic Daily Fee (Government Standard Fee)
The Basic Daily Fee is a contribution towards daily living expenses, such as meals, laundry, cleaning, resident activities, heating and cooling. All aged care residents pay a standard Basic Daily Fee. It is reviewed every March and September, in line with Centrelink increases in the Aged Pension.
Linked to the Aged Pension, this fee is increased in line with the pension on a six monthly basis. The current daily care fees are as follows:
- $52.71 (per day) Full pensioners and some part pensioners
- $52.71 (per day) Self-funded retirees and some part pensioners
1a. Additional Services Fee
All accommodation options require The McKenzie Advantage.
Please contact us, if you would like to view the full range of The McKenzie Advantage available. This fee can be deducted from the RAD or can be paid with your monthly fees, depending upon the chosen payment option.
2. Accommodation Payment
The Accommodation Payment is used to maintain and improve the accommodation and resident services at the residence.
Residents can choose to pay their Accommodation Payment by one of the following methods:
- RAD - Refundable Accommodation Deposit
This is a lump-sum deposit that is refunded in full at the end of residency. The Refundable Accommodation Deposit is protected by the Aged Care Act, 1997 (Commonwealth).
DAP - Daily Accommodation Payment
- This payment is the interest payable on any unpaid RAD and calculates it into a daily payment
- Combination of RAD and DAP
A combination payment that includes both a partial lump-sum refundable deposit and daily payments.
Some rooms are available for residents with reduced financial means. Residents with assets under $51,000.00 and income less than $28,048.80 may, with approval, obtain funding from the Australian Government.
Supported residents may be asked to contribute to their cost of care via a Daily Accommodation Contribution (DAC) or Refundable Accommodation Contribution (RAC) or a combination of both, if their assets are between $51,000.00 and $173,075.20 and their income is greater than $28,048.80.
Residents requiring financial support are obliged to submit a “Request for Combined Assets and Income Assessment”. Centrelink will outline their payment obligation within 14 days. Basic Daily Fees still apply.
3. Means Tested Care Fee (Government Standardised Fee)
The Means Tested Care Fee ensures that residents who have additional income and assets contribute to their medical costs including nursing and personal care. This fee is not retained by the residence
The Commonwealth Government via Centrelink assesses all residents entering a Commonwealth-funded residential aged care facility.
Residents will receive information regarding their Means Tested Care Fee obligations 14 days after the completion and lodgement of the “Permanent Residential Aged Care Request for a Combined Asset and Income Assessment”. If this assessment is not completed then a higher Means Tested Care Fee may be levied until such time as the information is provided.
The Maximum Means Tested Care Fee that a resident can be asked to pay per year is $28,338.71, with a lifetime limit of $68,012.98.
4. Respite Care Fees (Government Standardised Fee)
Respite care is available for short term needs or emergency situations.
Please contact our Sales Team on 1300 899 222 who will be able to give you details of your nearest residence.
All McKenzie aged care residences collect the applicable fees and charges on a monthly basis in advance. Fees are collected by direct debit. Residents will need to complete a Direct Debit Request Form on admission. There is no fee associated with this direct debit service.