Frequently Asked Questions
What are the main residential aged care fees?
Typical fees include the Basic Daily Fee, Means-Tested Care Fee, and accommodation costs such as RAD or DAP.
What is a RAD?
A Refundable Accommodation Deposit (RAD) is a lump sum payment that is fully refundable when the resident leaves care.
What is a DAP?
A Daily Accommodation Payment (DAP) is an alternative to paying a lump sum RAD.
Can we pay part RAD and part DAP?
Yes. Many residents use a combination payment method.
Do we have to sell the family home?
No. In many cases the home can be retained, although its value may be assessed in financial means testing.
What is the Basic Daily Fee?
The Basic Daily Fee covers meals, cleaning, laundry, and daily living costs.
What is the Means-Tested Care Fee?
This fee is calculated based on income and assets and contributes towards personal care costs.
Are there caps on aged care fees?
Yes. Annual and lifetime caps limit how much can be paid in means-tested care fees.
What happens if money runs out?
Government subsidies may increase to ensure continued access to care if financial resources are depleted.
What happens to the RAD when the resident leaves?
The RAD is refunded to the resident or their estate, usually within legislated timeframes.