Accommodation
Costs

Accommodation Costs

Residents contribute towards their accommodation and daily care through a schedule of accommodation and care payments outlined below. A resident’s aged care suite is secured through an accommodation payment that is fully refundable and Government guaranteed.

There are 4 payment options to secure a room:

Accommodation payment

Option 1: Fully refundable accommodation deposit (RAD)

This is a once-off lump sum payment that is refunded in full when the resident leaves. There are no exit fees deducted from this deposit. The current RAD for a standard private suite at Haddington is $450,000. Millrace has two room types at $450,000 to $480,000.

Option 3: A combination of RAD and DAP

Residents can choose to pay a combination of a part RAD and part DAP, for example, a deposit of $300,000 (RAD) and a daily payment on the unpaid amount of $150,000 (DAP). Only the RAD lump sum deposit is refundable when the resident leaves.

Examples (at 01/04/24)

All upfront

$450,000 deposit (RAD)

Option 2: Daily accommodation payment (DAP)

You can choose not to pay an upfront RAD and pay an interest charge each month instead. This fee is calculated daily based on the amount of the unpaid RAD. The interest rate used to calculate a Daily Accommodation Payment is called the Maximum Permissible Interest Rate (MPIR). This is set by the Government and reviewed quarterly. These payments are not refundable.

OR A daily payment

(Based on $450,000 RAD)

$102.82 / day (DAP)

MPIR 8.34%

OR A combination

(Based on $450,000 RAD)

Deposit $300,000 (RAD)

Plus $34.27 / day (DAP)

Option 4: Government supplement

The Government may provide assistance to cover the cost of your accommodation payment based on an income and assets assessment that will determine if you qualify for full Government support, or will be required to contribute towards your accommodation in one of 3 options:

  • A refundable accommodation contribution (similar to a RAD but capped at the lump sum equivalent of Government supplement rates)

  • A daily accommodation contribution (similar to a DAP but capped at Government supplement rates)

  • A combination of a RAC and DAC of your choosing

Care and support costs

Residents contribute towards the costs of the nursing care, daily support, meals and housekeeping they receive through daily care fees.

Set Daily Care Fees

A basic daily care fee

This fee is paid by all residents to cover living expenses such as meals, laundry, personal and nursing care and electricity. This fee is set by the Government and is standard in every Australian aged care facility. It is currently set at 85% of the pension and is adjusted each March and September in line with changes to the Age Pension.

Examples (at 01/04/24)

$61.96/ day

A means-tested daily care fee (MTCF)

This is an additional contribution towards the cost of a resident’s daily care. The amount of this fee is determined by a resident’s income and assets assessment. It is reviewed quarterly and may vary over time if a resident’s income, assets or cost of care change

The annual cap that applies to the MTCF:

The lifetime cap that applies to the MTCF:

Determined by the Government: Services Australia

$33,309.29

$79,942.44

Next steps

You can estimate the amount your loved one may be asked to pay towards their care by going to www.myagedcare.gov.au searching for ‘fee estimator’ and completing the form.

Some families also seek advice from a Financial Planner.