The financial side of Aged Care may become confusing. A multitude of government processes and terms to comply with can easily become overwhelming. Our role is to provide a clear and current explanation of your options. Please contact us to discuss your situation with one of our friendly team members.
Fees and Charges in Residential Aged Care
Refundable Accommodation Deposit (RAD)
If you are non-supported by the government, your lump sum payment is known as a Refundable Accommodation Deposit (RAD). If you are partially supported by the government, your lump sum payment is known as a Refundable Accommodation Contribution (RAC). You will get the majority of your lump sum refunded when you leave. The residential care provider retains 2% of your RAD or RAC each year, limited to 5 years. This is known as the Retention Amount.
Basic Daily Fee
Residents are required to pay a basic daily fee which goes towards cleaning, meals, laundry and other day-to-day costs of living. The current government-set maximum daily fee for all residents is 85% of the basic single age pension. Your maximum basic daily fee will be confirmed by the Department of Human Services upon your entry to an Aged Care community such as The Royce. Based on current rates, the maximum basic daily fee is $66.80 per day. Everyone is expected to pay a basic daily fee to cover these services.
Means-Tested Fee
These fees apply to residents who can contribute to the cost of their care. The fees are calculated by Services Australia, depending on your income and assets.
- Hotelling Contribution (HC): This fee is means-tested and supports the costs associated with care, such as catering, cleaning, maintenance, heating, cooling and laundry. The maximum you could be charged is $22.15 per day.
- Non-Clinical Care Contribution (NCCC): You only pay the NCCC if you’re paying the full hotelling contribution. This fee covers personal care services like bathing, mobility assistance, and lifestyle activities. It currently has a daily cap of $107.32 and a lifetime cap of $137,917.01 or 4 years, whatever comes first.
Higher Everyday Living Fee (HELF) Elevate
This is an optional fee. It is a new fee that replaces ‘additional services’ or ‘extra services’. These services are at a higher standard, or additional to, what is required by the government that will fall under HELF. The Royce’s Higher Every Day Living fee is called Elevate and offers meal choices and lifestyle and activity choices beyond the basic daily offering. Please contact our Admissions team for more information.
Financial Advice
Any decision regarding your care, or the care of a loved one should be an informed one. The Royce strongly recommends you speak with your trusted financial advisor before making any commitments, as they are best placed to provide a recommendation tailored to your individual financial position.
Optional Services – It’s Your Choice
In addition to TheHigher Every Day Living Fee, residents also have the opportunity to choose their own tailored additional services depending on their personal preferences. These services are optional and can include telephone access, newspaper delivery and salon services, and are priced as PAYG.
The Royce Team can tailor these options to your requirements.