Castle Hill Aged Care Home Fees and Charges - Residential Care
Residents are required to pay:
• A Basic Daily Care Fee;
• Where determined by Centrelink or DVA, a Means Tested Fee; and
• Where determined by Centrelink or DVA, an accommodation contribution
Residents are required to pay
Basic Daily Care Fee
The Basic Daily Care Fee is set by the Government and equates to 85% of the single pension for pensioners. These amounts vary from time to time as the level of the pension increases. Currently the basic daily care fee is $58.98/day.
Further information is available on www.humanservices.gov.au or www.myagedcare.gov.au
Means Tested Fee
The means tested fee is an amount which is assessed by Centrelink or the Department of Veterans Affairs (if the person is a veteran). It is the amount which the government agency determines as the amount which the resident can pay towards the cost of their care. These amounts are subject to Yearly and Lifetime caps which are set at the time of the resident’s entry to residential care and which are indexed in accordance with the CPI.
Accommodation Payments
The Accommodation Payment is set by the Board of Australian Nursing Home Foundation Limited and is varied from time to time.
They are only applicable to those residents entering on or after 1 July 2014 who have been assessed by Centrelink or DVA.
Castle Hill Aged Care Home charges Refundable Accommodation Deposits (RADs) and the corresponding Daily Accommodation Payments (DAPs)
Residents have the right to choose which option would best suit their financial arrangements. Those options are:
- To pay the RAD wholly by lump sum payment; or
- To pay the RAD as a daily payment (known as a DAP); or
- To pay the RAD by a combination of lump sum and daily payment
Our RAD (Refundable Accommodation Deposit) is $550,000.00. Within 28 days of entering the facility residents must advise the management of Castle Hill Aged Care Home which option they wish to choose. If this is not done, the management of Castle Hill Aged Care Home will implement the preferred option of the Board of Australian Nursing Home Foundation Limited.
From the date of entry, and pending advice of the resident’s preferred option of payment, residents will be charged the Daily Accommodation Payment. Where the resident chooses to pay by lump sum (RAD), the DAP will be charged until the lump sum is paid.
It is recommended that you seek advice from a financial planner to see which payment option best suits your financial arrangements.
The Accommodation Payment can also be paid by a combination of the lump sum (RAD) and daily payment (DAP). This is done by the resident electing to pay a percentage of the RAD as a lump sum and the remainder as a daily payment. The daily payment is calculated by applying the Maximum Permissible Interest Rate (MPIR) to the unpaid lump sum amount.
An example is as follows:
Resident A
- Enters into a single room and chooses to pay the RAD 50% as a lump sum and 50% as a daily payment.
- Resident A would therefore pay a lump sum of $275,000 and a daily accommodation payment (DAP) of $56.21.
This daily accommodation payment (DAP) is calculated as follows:
- Unpaid lump sum-$275,000
- Maximum Permissible Interest Rate-7.46%
- DAP ($275,000 x 7.46%) divided by 365 days-$56.21/day.
Resident B
- Enters into a single room and chooses to pay the RAD $50,000 as a lump sum and the remainder as a daily payment
- Resident B would therefore pay a lump sum of $50,000 and a daily accommodation payment (DAP) of $102.19.
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- This daily accommodation payment is calculated as follows:
- Unpaid lump sum-$500,000
- Maximum Permissible Interest Rate-7.46%
- DAP ($500,000 x 7.46%) divided by 365 days-$102.19/day
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