Accommodation Fees

There are several different components to your fees and charges based on your own circumstances. We highly recommend that you speak to your financial planner about your own personal circumstances.

1. Basic Daily Care Fee

The basic daily care fee is payable by all residents. It is currently $63.43 per day and is indexed to 85% of the single aged care pension. This fee increases on 20 March & 20 September each year in line with any increase made by the government to the aged pension.

2. Means Tested Fees

A Means Tested Fee is payable by some residents. The amount is determined by the Commonwealth Government, and is based on the Income & Assets Assessment.

Means Tested Fees are capped, so you will never pay more than the capped amount, no matter how long you are in residential care.

The maximum Means Tested Fee you can pay in any one year, is $33,309.29 with a Lifetime Cap of $79,942.44.

The Means Tested Fee is reviewed quarterly, based on any changes to your financial circumstances.

The Commonwealth Government will write to you shortly after your entry to a home, advising of any Means Tested Fees you may have to pay.

3. Accommodation Payment

You will be required to pay an accommodation payment, if your assessed assets exceed the minimum asset amount, as at 20th September 2024, $59,500.

The amount you will be required to pay, will need to be negotiated with the aged care home, but cannot exceed the maximum amount published on the MyAgedCare government website.

The maximum that the Lakeside Living can charge for an accommodation payment is $550,000.

You can choose to pay your accommodation payment costs by:

a) A lump sum called a Refundable Accommodation Deposit (RAD)

b) A rental or daily amount, called a Daily Accommodation Payment (DAP)

c) Or a combination of both a RAD and DAP

You will have 28 days from the date that you entered the home, to decide which payment method you will use.

You will be required to pay the Daily Accommodation Payment (DAP) method, until you decide the payment method.

Refundable Accommodation Deposit (RAD)

Refundable Accommodation Deposit (RAD), is an amount agreed to be paid to the aged care home as a lump sum. You will be charged interest at the rate published by the Federal Government for the period until the RAD is paid. The interest rate as at 1st January 2025 is 8.42%.

On leaving the aged care home, the RAD will be refunded to the resident or their estate.

Daily Accommodation Payment (DAP)

Daily Accommodation Deposit (DAP) is an amount agreed to be paid to the aged care home as a daily amount. The DAP is directly related to the RAD, and is calculated by using the agreed accommodation payment, and the government published interest rate.

There is no refund of a DAP when you leave the aged care home.

Examples of Accommodation payment options

Prior to entering the home, the resident & the home agree that an accommodation payment of $550,000 will be paid. The resident could elect to pay by;

a) A lump sum called a Refundable Accommodation Deposit (RAD) of $550,000

b) A rental or daily amount, called a Daily Accommodation Payment (DAP) of $550,000

The calculation would be $550,000 x 8.42% divided by 365 days = DAP of $126.87 per day.

c) A combination of a RAD & DAP

i. A lump sum called a Refundable Accommodation Deposit (RAD) of $275,000 and

ii. A rental or daily amount, called a Daily Accommodation Payment (DAP) of $275,000. The calculation would be $275,000 x 8.42% divided by 365 days = DAP of $63.43 per day.

Refundable Accommodation Deposits are like an interest free loan to the aged care home, and by law must be used to improve building standards and the quality and range of aged services provided. Repayment of the Accommodation Deposit is guaranteed by the Federal Government.

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