The following is general information only and should not be relied upon for any other purposes.
Fees, refundable accommodation deposits, and daily accommodation payments
All permanent and (short-term) respite, care recipients, in residential aged care generally pay a basic daily care fee.
As from 1 January 2020, the Commonwealth Department of Health and Ageing set the standard resident contribution at $51.63 per day. Some care recipients may pay a lesser or higher amount than the standard resident contribution.
For instance, care recipients entering into permanent care are assessed by Centrelink and may be required to pay a "means-tested care fee" in addition to a basic daily fee.
Fully-supported, partially-supported and non-supported residents
Centrelink determine from a potential care recipient’s statement of assets and income, whether the person is eligible to be a ‘fully supported’ ‘partially supported’ or ‘non-supported’ resident on entry into permanent residential aged care.
These residents generally pay a basic daily fee with no additional ongoing capital fees.
These residents generally pay a basic daily fee and if they have assets above $47,500 and income above a minimum threshold and are eligible to pay a means-tested care fee and a refundable accommodation deposit or daily accommodation payment or some combination of the two.
From 1 January 2020, Hellenic Aged Care will accept from eligible residents, refundable accommodation deposits up to $545,000. A refundable accommodation deposit is similar to an interest-free loan. When a resident who has paid a refundable accommodation deposit departs a residential aged care facility the whole of the deposit is refundable to the resident or to their estate. Interest can be charged from the date of permanent admission, on the outstanding amount of a refundable accommodation deposit, until the deposit is paid. Applicable interest rates are issued quarterly by the Department of Health and Ageing (4.91 per cent pa for admissions in the quarter from 1 January 2020 to 31 March 2020).
Eligible residents may prefer to discuss payment of a daily accommodation payment in place of a refundable accommodation deposit. The daily accommodation payment is derived by applying the specified interest rate to the refundable accommodation deposit amount agreed with the resident expressed as a daily amount. The daily accommodation payment equivalent of a $545,000 refundable accommodation deposit is $73.31 per day ($545,000 x 0.0491 = $26,760.00/365 = $73.31).
Eligible residents may prefer to discuss payment of a refundable accommodation deposit combined with a daily accommodation payment. For instance, a refundable accommodation deposit of $300,000 and daily accommodation payment of $32.96 per day instead of the aforementioned $545,000 ($245,000 x 0.0578 = $12,030.00/365 = $32.96).