What are the Financial Considerations?

What will I have to pay?

Residents pay the following fees and charges on entry to any aged care facility. Please note that these fees are current from 20 March 2017.

Basic Daily Fee

The rates of basic daily fees are set using a percentage of the single age pension. Most residents will pay the standard rate of 85% of the single pension, however, each resident’s rate is determined according to their circumstances at the time they enter permanent residential aged care and there are four rates that may apply. Daily fees will be indexed on 20th March and September each year.

Standard Rate      ($50.16) Applies to most aged care residents, including full    pensioners and some part pensioners with lower private income, and for transferred residents the following fees may apply;

Phased Rate          ($50.16) Applies to people who enter permanent care from 20 September 2009, including part pensioners with private income above the income threshold and self-funded retirees.

Protected Rate     ($45.73) Applies to people who were in permanent care on 19 September 2009, including part pensioners with private income below the threshold and self funded retirees.

Non-standard      ($56.94) Applies to certain people who entered care prior to 20 March 2008, including self funded retirees, pensioners who have agreed to pay a big pond or residents who have chosen not to disclose financial information.

Current rates will be notified to residents upon admission. Their financial status is assessed by Centrelink or Veteran Affairs depending on their circumstances and advised by the Department of Human Services.

Further information is available through the My Aged Care website.    www.myagedcare.gov.au

Means-Tested Care Fee

Residents in permanent aged care may be asked to pay a Means-Tested Care fee in addition to the basic daily fee. The amount they pay will depend on their income & assets and level of care. This fee is paid directly to Fairview as part of the residents overall fee and contributes to the day-to-day care costs such as nursing and personal care. The Department of Human Services will advise both the resident and the facility of the fee payable and will periodically carry out a review.

If the resident is not required to pay the means-tested care fee, the Australian Government,  will pay the full cost of their care.

There are annual and lifetime caps that apply to the means-tested care fee. Once these caps are reached the resident cannot be asked to pay any more in means-tested care fees.

Accommodation Payment

Depending on the resident’s income and assets they may be asked to pay an accommodation payment. This is for their accommodation in the facility. Some residents will have their accommodation costs met in full or in part by the Australian Government, while others will need to pay the accommodation price agreed with the aged care facility.

The amount they can be asked to pay for their accommodation will be based on their income and assets, and will be one of the following:

– No Accommodation Costs: if income and assets are below a certain amount, the Australian Government will pay accommodation costs.
– An Accommodation Contribution: if required to pay part of the cost of the accommodation, the Australian Government will pay the rest.
– An Accommodation Payment: if required to pay for the full cost of the accommodation.

The Department of Human Services will advise which applies to the resident based on an assessment of their income and assets. Residents can choose to pay their accommodation costs by:

– lump-sum style ‘refundable accommodation deposit’ (RAD) $290,000
– rental-type payments called a ‘daily accommodation payment’, (DAP) or
– any combination of both.

Residents will have 28 days from the day they enter into care to decide their payment method.

Payment of Fees

Fees, being the sum of the basic daily fee, means-tested fee and accommodation payments where applicable, are payable at the end of each month. Monthly accounts are sent to residents, relatives or legal guardians. Accounts rendered are payable within seven (7) days of receipt. Payment can be made by either cheque, cash or direct deposit.

When a resident has been assessed as being liable to pay an accommodation payment, the payment will commence from day of admission. Residents, relatives and or legal guardians are reminded that the resident agreement must be signed prior to or within fourteen (14) days of the date of admission. Failure to do so will not relinquish the Provider’s right to charge any fees from date of admission.

Late payment of fees may necessitate charging of interest. Fairview can also seek the intervention of Public Guardians and Centrelink to reassess nominees and management of the resident’s financial affairs. Continued late payments may cause the provider to issue the resident with notice to vacate the facility.