Hope Aged Care Terms & Conditions

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Entry into Hope Aged Care Homes

There are two types of fees payable in the aged care

1: Daily Care Fee
2: Accommodation Payment

1: Daily Care fee: The daily fee consists of:

  • Basic Daily Care Fee: Every person in residential aged care is required to pay a Basic Daily Fee, which covers all levels of care and assistance. The basic daily fee is approximately 85% of the single person rate of the basic age pension. The government sets the price on 20 March and 20 September each year, changing in line with increases to the aged pension.

    Prices are published on the Department of Health website.

     

  • Means Tested Care Fee: The government requires those who can afford to contribute more towards their care to do so. As such, the Department of Human Services will determine if a resident is required to pay a Means Tested Care Fee in addition to Basic Daily Fee. This amount is based on an assessment of the new resident’s income and assets. Potential residents will be notified if a Means Tested Care Fee is payable when they receive their Centrelink Assessment letter. There are yearly and lifetime Maximum Means Tested Care Fees. The Maximum Means Tested Care Fee you can be asked to pay is $31,706.83 each year or $76,096.50 in your lifetime. These caps are indexed and change each time there is an increase in the aged pension. We recommend you seek independent financial advice.

2: Accommodation Payment:

The total Accommodation Payment amount will vary depending on the accommodation type chosen by the resident. The payment method is also determined by the resident, who can choose between paying a RAD (Refundable Accommodation Deposit), a DAP (Daily Accommodation Payment) or a combination of both.

  • Refundable Accommodation Deposit (RAD): A Refundable Accommodation Deposit (RAD) is a one-off lump sum payment made to the aged care provider. It varies according to the room chosen by the resident. The RAD is fully refundable on departure. Upon payment of the RAD the resident must be left a minimum of $57,000 in cash / assets. If the RAD is paid in full within 7 days of admission no interest will be charged. The deposit is fully refunded when you leave the aged care residence, less any amounts you have agreed to have deducted. Those residents transferring to another aged care residence or returning home will have their RAD refunded within 14 days from discharge. In the case of a deceased resident, the RAD will be refunded within 14 days of receipt of a certified copy of the Grant of Probate.

  • Daily Accommodation Payment (DAP) A Daily Accommodation Payment (DAP) is a rental-type payment. Instead of paying for your accommodation in full (as a RAD) an ongoing daily payment can be selected. The DAP is calculated by multiplying the agreed RAD amount by the government legislated interest rate (currently 7.9% per annum)

  • COMBINATION PAYMENT (RAD + DAP) You can opt to pay part of the accommodation payment as a lump sum RAD and then the balance via DAP payments. DAP payments will be calculated based on the outstanding RAD amount. If you choose a combination of RAD and DAP and you elect to have the DAP taken from the RAD, your DAP payment will increase over time as the RAD amount is reduced.

There are more payment options like RAC and DAC for partially supported residents.

Please reach out to one of our financial department staff for more clarification on [email protected]