Aged Care Costs | Fees & Charges Explained

Aged Care Costs | Fees & Charges Explained

Residential Aged Care Fees Explained

Are you or a loved one struggling to understand the costs and fees involved in residential aged care? Perth Aged Care Financial Advisers can help. We specialise in providing clear and concise explanations of the financial aspects of aged care, tailoring our approach to meet the unique needs of each individual client.

Our team of experienced financial advisers understands that there is no single solution that works for everyone, which is why we take the time to carefully consider the circumstances, resources, options, and emotional factors of each case.

Let us help you better understand aged care fees and charges, so you can focus on what really matters: enjoying a happy and healthy life.

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How Much Does Aged Care Cost?

To enter aged care there is an accommodation cost. Depending on your financial situation, you may have to pay the full price of your aged care accommodation, or the Australian Government may help cover some or most of it.

There are also a number of ongoing costs associated with permanent care in an aged care home. They include:

  • Basic daily fee – An amount that everyone pays for the day-to-day services they receive at the aged care home.
    • Currently $58.98 per day.
    • Please note, this fee increases twice a year in line with the age pension.
  • Means-tested care fee – Some people may need to pay extra toward their day-to-day personal care and nursing costs, but this only applies to people who can afford it – and the amount varies according to your income and assets.
    • This fee can be between $0 and $358.41 per day.
  • Additional or Extra service fees – For services that go beyond minimum care and service requirements, or for upgraded hotel-type services and rooms provided.

How Do You Pay Aged Care Accommodation Costs?

You have three options as to how you pay for your aged care accommodation:

  • A lump sum refundable accommodation deposit – known as RAD for short,
  • A regular rental-type payment called a daily accommodation payment – known as a DAP for short,
  • Or a combination of both.

What Does the Government Contribute Towards Aged Care Costs?

The amount the Australian Government contributes is based on an assessment of your ongoing care needs once you have entered care. Furthermore, if your means assessment shows you have limited financial capacity, the government will increase its contribution.

You can use the Fee Estimator provided by the government’s My Aged Care site, to find out:

  • An estimate of your basic daily fee and means-tested care fee, and
  • Whether you may be eligible for government assistance with aged care accommodation costs.

Get Expert Guidance on Aged Care Costs

Perth Aged Care Financial Advisers can provide the guidance you need to navigate the complexities of aged care fees and charges. If you’re planning your own or your elderly parents’ aged care and are looking for expert advice on aged care costs, get in touch with us today on (08) 9324 7450 for a free consultation.