3.3.4 How are the accommodation costs calculated | Compensation and Support Reference Library, Aged Care Means Testing, 3 Residential Aged Care Fees and Payments, 3.3 Accommodation Costs

You are here

3.3.4 How are the accommodation costs calculated

Accommodation costs will be regulated at three levels: up to the maximum Government accommodation supplement, up to the maximum accommodation payment as determined by the Social Services Minister; and amounts greater than level 2 that are pre-approved by the Aged Care Pricing Commissioner.

Residents not eligible for Government assistance can still choose level 1 costs, or negotiate with the provider for their choice of level 2 or 3 accommodation. Prospective residents and their families are able to compare aged care providers, including their accommodation prices and features, through the publication of information on their websites, the My Aged Care website, and publicly available documentation.

Residents eligible for Government assistance based on their relevant means tested amount will pay no more than the difference between their Government accommodation supplement and the maximum supplement. The amount of accommodation contribution is not fixed so as the care recipient’s means vary, they may need to ‘top-up’ their Refundable Accommodation Contribution (RAC) or increase the Daily Accommodation Contribution (DAC) if their means are assessed as being greater. However, while in a service, they cannot be asked to pay an accommodation payment (Refundable Accommodation Deposit (RAD) or Daily Accommodation Payment (DAP)), even if their means vary substantially.

A refundable lump sum payable by aged care residents towards their accommodation costs, with the Government also making a contribution on the resident’s behalf.

A payment for accommodation that accrues daily and is payable as a periodic amount by aged care residents for whom the Government is also making a contribution.

A refundable lump sum payment for accommodation costs when the resident making the payment is not eligible for Government assistance, and is meeting the full costs of their accommodation on their own.

A payment for accommodation costs worked out by converting the refundable accommodation deposit (RAD) to a daily amount, which is payable as a periodic amount by aged care residents.