The transition from aged care can be complex and hard to understand, thus causing stress for many families. Perth Aged Care Financial Advisers specialise in giving well-thought and carefully structured aged care financial planning. Some common questions our clients ask:


What’s the first step in moving into a residential care?

The first thing you need to do towards admission into residential aged care is to consult with the local Aged Care Assessment Team or ACAT. They shall assess your condition and determine if you are eligible for aged care.

What are the fees involved in a residential aged care?

Moving to a residential aged care means having to deal with costs such as upfront accommodation payment in the form of Refundable Accommodation Deposit (RAD) or Daily Accommodation Payment (DAP), a basic daily fee, a means-tested care fee, and an additional service fee.

What is Refundable Accommodation Deposit (RAD)?

Refundable Accommodation Deposit (RAD) is previously known as accommodation bond. RAD, to put things simply, is an interest free loan you make to the residential aged care. You will get back this deposit within 14 days after moving out of the residential aged care or in the event of death.

What is Daily Accommodation Payment (DAP)?

Another way of paying the upfront cost when moving to an aged care facility is through the Daily Accommodation Payment (DAP). Unlike RAD which you have to pay in a lump sum, DAP is a regular ongoing fee broken in small amounts. You have 28 days after admission to decide if you are going to pay through RAD or DAP. Combination of RAD and DAP is also available.

How much does RAD or accommodation bond cost?

RAD can be anywhere between $250,000 to $500,000 but can be more in some cases.

What is the Basic Daily Fee?

The Basic Daily Fee pays for the living expenses of aged care. As of 20 March 2023, Basic Daily Fee is valued at $58.98 per day.

What is Means Tested Care Fee?

This fee is means tested on your assets and income. This shall not be more than the cost of care.

What is the Additional Service Fee?

This is a daily fee set by the facility based on the “luxuries” or extra services you are getting.

I’m not sure if I would be able to pay the bond or the fees. Should I sell my home?

Selling your home would give you enough funds to pay for RAD or accommodation bond. However, you have to assess if selling your home may be the best option for you. In many cases, this has made their financial situation worse. It is important that you seek financial advice to avoid committing costly mistakes.

When shall I seek financial advice?

Once you start considering aged care, it is important that you seek financial advice immediately before making any financial decision or sell any assets.