An Extract from the GR8Kare website | My Assignment Tutor

Appendix CAn Extract from the GR8Kare websiteResidential careTo ensure the sustainability of the aged care system and to enable olderpeople to access the care they need the government strengthened meanstesting arrangements for people entering residential care from 1 July 2014,combining income and asset tests to ensure a consistent fees policy.If you move into residential aged care from 1 July 2014, you may be askedto payA basic fee: paid by all people who receive residential care. For somepeople, this is the only fee you may need to pay. This is 85 per cent of thesingle person rate of the basic Age PensionA means tested care fee: an extra contribution towards the cost of care thatyou may need to pay on top of the basic fee, depending on your income andassets. An accommodation payment is a payment for accommodation in anaged care facility. You may have your accommodation costs paid in full orin part by the Australian Government. Other people will need to pay theaccommodation price they negotiate with the aged care facility.Fees for extra or additional optional services: an extra payment you maybe asked to pay if a higher standard of accommodation is chosen or anadditional service is elected, such as hairdressing or pay TV in rooms.An annual cap of $25,000 will apply to a resident’s means-testedcontribution to their care costs, together with a lifetime cap of $60,000.Means testing will be conducted by the Department of Human Services(Centrelink). Centrelink will advise on the means tested care fees and theaccommodation payment arrangements that will apply.Where you are required to make a payment for accommodation, yourpayment options are:• A lump sum payment called a Refundable Accommodation Deposit(RAD). This will be returned in full to you if you leave the facility orto your estate on your passing, minus any amounts you and the agedcare facility have agreed should be taken out of the deposit for yourcare.• A regular rental-type payment called a Daily AccommodationPayment (DAP). This is calculated using a legislated formula andinterest rate. The formula used to calculate a DAP is:equivalent daily payment (refundable deposit x maximumpermissible interest rate]/365These rental-type payments are not refunded to you or your estate.Or a combination of both RAD and DAP..

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