When entering into permanent residential aged care, there are two types of costs you may need to pay the residence:
1. Accommodation cost
An accommodation cost—otherwise known as the ‘room price’— may be payable as either a Refundable Accommodation Deposit (RAD) or Daily Accommodation Payment (DAP). The accommodation cost may vary between residential aged care residences and between rooms within a residence.
The DAP is calculated by using a government set interest rate, the Maximum Permissible Interest Rate (MPIR), times the RAD divided by the days in the year. The current MPIR is 5.70%, so for example a DAP on a RAD of $300,000 would be $300,000 x 5.70% / 365 = $46.85. You can also pay a part RAD or DAP combination, so using the example above if you have paid $150,000 of the RAD the DAP would be $150,000 x 5.70% / 365 = $23.43.
All residences should provide you with information outlining their accommodation costs. You can find these for Menarock Life’s residences under the link for each residence
2. Daily fees
There are three types of daily fees:
a. Daily Care Fee: $49.42 per day
This fee is set by the government and is capped at 85% of the basic Centrelink Age Pension for a single person. The fee changes on 20th March and 20th September each year in line with pension increases. The Daily Care Fee is payable by residents in residential aged care irrespective of pension status or type.
b. Means-tested fee
Some residents, as assessed by the government, may be required to pay a means-tested fee. The means-tested fee is assessed and charged by the government and is directly aligned with your income, assets and care needs. There are annual and lifetime caps to the means-tested fee. These costs are explained more fully under Government Requirements and Costs.
c. Additional Fees
Some residences may charge other fees sometimes called additional service fees or extra service fees which may be compulsory fees. Menarock Life does not have such fees.