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How are variable fees calculated
Variable fees are calculated by the aged care provider. DVA has no input into the income used to calculate variable fees. The income transmitted by DVA to DH&FS is not utilised by the provider who calculates income based on income details obtained directly from the resident.
The level of fees is not dictated by DH&FS, however the resident must be left with a minimum amount of income. There is also a maximum charge of up to 85% of a resident or couple's private income that the provider can levy. Providers can choose to levy a lower percentage if they wish.