Residential Aged Care fees vary depending on an individual’s assets and income. RSL Care SA offers a number of accommodation options across all facilities, from platinum single rooms with private ensuits to share rooms with an ensuite. Accommodation fees vary depending on the accommodation type.
To ensure prospective residents with low assets and income are not disadvantaged from being offered permanent placement, accredited aged care facilities must reserve a percentage of their beds for ‘low means’ residents.
Asset and Income Assessment and Thresholds
Residents who are eligible to receive subsidised aged care fees are required to submit an Asset and Income Assessment to the Department of Human Services (Centrelink). Please see below for current asset and income threshold levels and the applicable fees:
ASSET & INCOME FREE THRESHOLD – Low Means Resident
Assets between $0.00 and $48,500, and Income below $26,764.40
- Basic Daily Care Fee only
FIRST ASSET & INCOME THRESHOLD – Low Means Resident
Assets between $48,500 and $165,271.20, and income below $51,667.20
- Basic Daily Care Fee
- Accommodation Contribution
ABOVE FIRST ASSET & INCOME THRESHOLD – Financial Resident
Assets above $165,271.20 and income above $51,667.20
- Basic Daily Care Fee
- Accommodation Payment
- Means Tested Care Fee
Figures shown reflect the Department of Health ‘Schedule of Fees and Charges for Residential and Home Care’ from 1 July 2018.
Fees and charges explained
BASIC DAILY CARE FEE
The Basic Daily Care Fee (BDCF) is paid by everyone. It is set by the Commonwealth Government and is approximately 85% of the single Aged Pension. The BDCF covers all living expenses and contributes to the costs of other services such as meals, personal care, recreation activities, laundry, cleaning and nursing care
Current daily rate $50.16
MEANS TESTED CARE FEE
The Means Tested Care Fee (MTCF) is paid by residents who exceed the government’s first assets and income threshold. As the BDCF does not cover 100% of the costs incurred by an aged care facility in providing its services, residents who are deemed to have the financial means are required to contribute more towards the cost of their own care. The MTCF varies depending on the asset and income level of the resident.
Current maximum daily rate $216.59 Annual Cap $26,964.71 Lifetime Cap $64,715.36
The Accommodation Contribution is paid by Low Means residents only. It is reviewed quarterly and is subject to change; however a resident will not be required to pay more than what is advised from their asset and income testing. The facility has restrictions on how much it may charge based on its Low Means resident ratio and whether or not the facility is newly refurbished. The Accommodation Contribution may be paid as a lump sun equivalent, known as a Refundable Accommodation Contribution, which is 100% refundable.
Current maximum daily rate $56.14
The Accommodation Payment is paid by financial residents only. The price is set by the facility in accordance with government provisions and is nonnegotiable. RSL Care SA offers a range of accommodation prices:
War Veterans’ Home RSL Villas
$225,000 – Double shared with ensuite $350,000 – Premium private single with ensuite
$275,000 – Standard private single with ensuite
$450,000 – Premium private single with ensuite
$550,000 – Platinum private single with Ensuite
There are three accommodation payment options to consider:
1. Refundable Accommodation Deposit (RAD)
The RAD option means paying the accommodation payment to the facility as a lump sum. RAD payments are 100% refundable and government guaranteed. RAD payments are invested securely by RSL Care SA and the interest received is used to cover accommodation costs.
2. Daily Accommodation Payment (DAP)
A DAP is when the accommodation payment is paid on a periodic basis (monthly). It is calculated as a daily payment by applying the government’s maximum permissible interest rate (MPIR) to the Accommodation Payment.
Current MPIR = 5.96%
3. Combination of both RAD and DAP
It is possible to combine the RAD and DAP payment options. The DAP will be calculated on the unpaid portion of the RAD. It is also possible for the DAP to be withdrawn from the RAD payment.
What Is Right For Me?
Moving into residential aged care is an important life decision and each person is coming from their own unique circumstances. For this reason, RSL Care SA is unable to give financial advice or provide specific guidance as to which option may be right for you. We strongly encourage you to seek independent financial advice to ensure you choose the right option for your circumstances.