While the Australian Government provides funding to residential aged care homes to assist with the costs associated with providing care, most residents will have to pay fees and charges.
Major reforms to the aged care system, including the way fees and charges are calculated, apply to residents who first enter residential aged care on or after 1 July 2014, or who move to aged care facilities and choose to be assessed under the new rule.
One of the key changes is that all aged care facilities will be subject to the same fee structure, regardless of the level of care the resident requires.
There are two main types of fees payable for aged care:
- Accommodation payments
- Ongoing fees
The accommodation payment is det by the aged care facility and can be paid as a lump sum (RAD) or a daily amount (DAP).
The ongoing fees include the basic daily fee and can also include a means tested care fee and an extra services fee. The basic daily fee is the same for everyone, but as the name suggests, the means tested care fee will depend on your financial means.
Some aged care facilities are approved by the government to provide extra services across the whole facility or in a designated part of the facility. In addition to designated extra service facilities, some standard aged care facilities offer extra services on an opt-in basis.
Extra services mean that the facility will provide you with a higher standard of accommodation and services, which you will pay for in the form of a daily extra service fee. Extra services may include a choice of meals, wine or massages. Accommodation and services vary from one facility to another, so you will need to check with the provider for details of services and extra service fees.