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Balance Retirement & Aged Care Specialists

Unsupported Residents

With the information provided, the person(s) moving into care would be considered an Unsupported or Financial Resident. This means the following:

Care Costs

Fees associated with Unsupported residents include:

  • The Basic Daily Care Fee –  Currently $63.57 per day which is 85% of the basic pension. The Basic Daily Care Fee is indexed and will change twice a year in line with the pension.
  • Means Test Fee – You will pay this fee from the start and it can vary from $1 per day up to $403 per day. This will be determined by completing the means test form when entering into Aged Care. Completing this form is optional, but the person(s) will be charged the maximum based on their care needs if not completed.
  • Additional Service or Extra Service Fee – This is a daily fee they charge the facility can charge for additional and extra services. You will need to ask the aged care home if they charge this fee and how much it is.

Accommodation Costs

  • You will pay the accommodation in full. The home will advise what the cost of the room is. You can pay the accommodation as a lump sum, a daily amount or a combination of the two.
  • If you decide to pay it as a lump sum this is called a RAD (Refundable Accommodation Deposit)
  • If you choose to pay the daily amount this is called a DAP (Daily Accommodation Payment).

As an Unsupported Resident you will have a choice of room, but you need to make sure you have a cashflow surplus or limit the cashflow shortfall. Whether you sell the home, rent the home, borrow some money, all these options may affect the pension (too much or too little in the bank) and Income tax (earning interest on money left in the bank/investments).

Seeing an Aged Care Financial expert will help. They will help work out the aged care costs, look at the potential options you have available, help complete the means test forms, make sure you get the correct outcome and see if there is any way to save money.

If you are a couple moving in at the exact same time. If you own a home and/or have assets over $412,078 then you have a choice when moving into care. You can potentially make one partially supported and one unsupported or the option of both being unsupported. Each option will give you different outcomes financially, speak to an expert to see which way would suit you.

To find out what options Unsupported Residents have or how you can minimise these fees, Call Balance on 1300 556 287 or complete our Contact Form.