Fees and funding
Please note that care home fees vary. For exact costs, you will need to discuss your needs with each care home you’re enquiring about.
There are two types of payments for residential aged care:
Daily services fee
This covers daily living costs such as personal and nursing care, meals, heating and laundry. They are paid by all residents, whether they're receiving low or high care, and are determined by the Department of Health and Ageing (DoH&A).
The daily fee has three potential parts:
- A basic daily fee determined by the government based on the resident's income.
- An extra service fee for residents who have chosen an extra service facility.
- An income tested fee for residents with a higher income.
Income tested fee
All residents permanently entering an aged care home are income tested by the government. This is to determine if they'll be required to pay an income tested fee.
This fee is an amount the paid in addition to the basic daily fee, and is based on a calculation of non-pension income. It's "capped" at a certain amount determined by the government.
Accommodation payments
These payments contribute towards the cost of accommodation in a residential aged care facility. It is only paid if the resident's assets exceed an amount determined by the government. The payment will be either an:
Accommodation bond
Accommodation bonds act as an interest free loan to the aged care home. They can only be used towards improving building standards and the quality and range of aged care services provided.
An accommodation bond may also be payable if the resident opts for an extra service facility, irrespective of whether they have low or high needs.
At Bupa Care's extra service facilities, the bond amount varies depending on the standard of accommodation available. This is such to as whether the facility has single or double rooms or a private or shared ensuite.
An advantage of paying an accommodation bond is that it isn't deemed to be an asset and therefore can provide significant taxation and pension benefits. It's a good idea to talk to an investment advisor about the benefits of an accommodation bond.
Accommodation charge
This charge is payable if a resident enters high level care and their assets are valued over a certain amount.
Like the accommodation bond, it's used by the facility to maintain and improve accommodation. This charge is paid daily in addition to the basic daily fee and any income tested fee.
The amount payable is agreed upon by the resident and the aged care facility. However, the government sets a maximum amount that can be charged. The resident also can't be asked to pay an amount that would leave them with less than a set level of assets.