There are three pricing components to permanent care that may be applicable. Further information about costs and fees is available through the My Aged Care website at www.myagedcare.gov.au.
All fees and charges are regulated and reviewed periodically by the Australian Government. Refer to the current schedule of fees and charges for residential care from the Department of Health for specific values.
(1) Basic daily fee (every person pays this fee)
This fee covers living expenses comparable to what a person pays at home, such as utilities, meals, cleaning and laundry.
(2) Means tested care fee (dependent on a person’s income and assets, as determined by the Australian Government)
There is daily, annual and lifetime caps in place to support a person who is required to contribute to the cost of their care.
Typically, mecwacare does not charge an interim fee upon entry while waiting for the letter from Services Australia or the Department of Veterans’ Affairs. If it is likely that this fee will be applicable and the client’s choice is to commence paying from the day of entry, then mecwacare can provide an estimate to support this request. Either way, the fee will be adjusted and backdated once we receive the letter.
(3) Accommodation payment (dependent on a person’s income and assets, as determined by the Australian Government)
A person’s accommodation type will reflect one of the following three categories.
- An accommodation payment (self-funded)
The agreed room price can be paid as a Refundable Accommodation Deposit (RAD), Daily Accommodation Payment (DAP) or as a combination of both the RAD and DAP. The DAP is the default payment method and is payable from the day of entry until the RAD is paid in full. The interest rate is set and fixed by the Australian Government from the day of entry.
- An accommodation contribution (partially supported)
The contribution can be paid as a Refundable Accommodation Contribution (RAC), Daily Accommodation Contribution (DAC) or as a combination of both the RAC and DAC. The contribution amount is not fixed and may vary occasionally, as there are several variables that determine the value of the accommodation supplement paid to the care home by the Australian Government. The interest rate is set and fixed by the Australian Government from the day of entry.
- No accommodation payment (fully supported)
The Australian Government will fund the person’s accommodation.