Some people will have their accommodation costs partially or fully subsidised by the Australian Government, while other people will need to pay the full accommodation price agreed with the home. This will be assessed and determined by Services Australia as part of your means assessment to determine your income and assets. If you’re part of a couple, half of your combined income and assets are considered, determining your eligibility for government support, therefore it’s important you seek financial advice to understand your options.
There are three different categories of accommodation charges depending on your means assessment:
1. Fully supported: based on your income and assets assessment the government will pay the full costs of your accommodation
2. Partially supported: based on your income and assets assessment the government will pay some of the costs of your accommodation and you will be required to contribute the rest
3. Self funded: this means that you pay the total costs of your accommodation
If you fall into fully supported or partially supported categories, your accommodation payment options include:
1. Refundable Accommodation Contribution (RAC): is paid up front in one lump sum, guaranteed by the Australian Government, ensuring full repayment to you if the aged care provider becomes bankrupt, insolvent or cannot themselves refund the lump sum balance. When you leave your Estia Health home, it’s fully refunded to you or your estate.
2. Daily Accommodation Contribution (DAC): gives you the option to pay by DAC, charged as a monthly amount calculated using the Maximum Permissible Interest Rate (MPIR) set by the Australian Government, reviewed four times a year.
3. Combination payment: a payment option consisting of a part RAC payment supplemented with a DAC.
4. Drawdown payment: a payment option that may be available, whereby the DAC payment is deducted from your lump-sum RAC payment.
If you fall under the self-funded category your accommodation payment options include:
1. Refundable Accommodation Deposit (RAD): is paid up front in one lump sum, guaranteed by the Australian Government, ensuring full repayment to you if the aged care provider becomes bankrupt, insolvent or cannot themselves refund the lump sum balance. When you leave your Estia Health home, it’s fully refunded to you or your estate.
2. Daily Accommodation Payment (DAP): gives you the option to pay by DAP, charged as a monthly amount calculated using the Maximum Permissible Interest Rate (MPIR) set by the Australian Government, reviewed four times a year.
3. Combination payment: a payment option consisting of a part RAD payment supplemented with a Daily Accommodation Payment
4. Drawdown payment: a payment option that may be available, whereby the DAP payment is deducted from your lump-sum RAD payment.
For people that fall into the category of self-funded, our Accommodation Payment Calculator can help you determine the best way to pay.
Our client relations team are available and happy to help discuss payment options.
Get in touch today 1300 682 833
