FINANCIAL ARRANGEMENTS

 Residential aged care fees and costs from 1 July 2022

Approved providers of residential aged care may charge:

  • a basic daily fee
  • a means-tested care fee
  • an accommodation payment or contribution

Read more about residential aged care fees and accommodation costs.

https://www.health.gov.au/health-topics/aged-care/providing-aged-care-services/charging-fees-for-aged-care-services

Costs explained

Basic daily fee

Based on current rates, the maximum basic daily fee is $54.69 per day, or $19,961.85 per year.

This fee helps pay for your day-to-day services such as meals, cleaning, facilities management and laundry. Everyone is expected to pay a basic daily fee to cover these services.

The basic daily fee is 85% of the single person rate of the basic age pension. The government sets the price on 20 March and 20 September each year, changing in line with increases to the age pension. Prices are published on the Department of Health website.

You pay your basic daily fee directly to your aged care home, generally on a fortnightly or monthly basis. The fee applies for every day you are a resident, including days when you might be away overnight; for example, on holiday or in hospital.

Means-tested care fee

The means-tested care fee that you pay will be between $0 to $259.26 per day. 

Not everyone will have to pay a means-tested care fee. The exact amount you will pay is determined through an income and assets assessment.

The means-tested care fee is an ongoing fee that you pay towards the cost of your personal and clinical care. Personal care can include help with bathing, dressing, grooming, and going to the toilet. Clinical care can include services like specialised nursing services, medication assistance, or catheter care. 

Annual and lifetime caps

There are annual and lifetime caps on means-tested care fees. The maximum an aged care home can charge you is: 

  • $29,399.40 per year, or
  • $70,558.66 in a lifetime.

If you don’t complete an income and assets assessment, you will not be eligible for Australian Government assistance towards your accommodation costs. You can also be asked to pay the full cost of your care $259.26 per day until you reach the annual and lifetime caps.

https://www.myagedcare.gov.au/aged-care-home-costs-and-fees

Accommodation 

Each home sets its own pricing, depending on factors such as the location of the facility and the size of the rooms. The amount you pay for your accommodation depends on your eligibility for government help.

At Pines Living

  1. Single Suite with Ensuite (Room size 22.4sqm) price is $550,000
  2. Twin Suite with Ensuite (Room size 29.2qm) price is $450,000 per bed
  3. Luxury Single Suite with Ensuite (Room size 29.2sqm) price is $895,000
  4. Additional Services Single Suite with Ensuite (Room size 22.4sqm) price is $550,000 plus additional services $20 per day
  5. Additional Services Superior Suite with Ensuite (Room size 25.6sqm) price is $695,000 plus additional services $20 per day
  6. Additional Services Premium Suite with Ensuite (Room size 27.2sqm) price is $895,000 plus additional services $20 per day
  7. Additional Services Deluxe Suite with Ensuite (Room size 29.2sqm) price is $895,000 plus additional services $20 per day
  8. Additional Services Twin Suite with Ensuite (Room size 29.2sqm) price is $450,000 per bed plus additional services $20 per bed per day

 

Self-funding your accommodation

If you’re not eligible for government assistance, the amount you pay will depend on:

  • the type of room you choose
  • your price negotiations with your aged care home.

the type of room you choose

If you are not eligible for government assistance, the price you agree to pay will vary depending on what type of room you choose. For instance: 

  • whether you choose a single or shared room, or opt to have a shared bathroom or ensuite
  • the size of the room 
  • the geographical location of the aged care home.

While there is flexibility in how you pay for your accommodation, it’s still important to choose a room within your budget. You can find and compare room costs using the Find a provider tool.

Your price negotiations

Whether you have to pay towards y our accommodation or not, everyone entering an aged care home needs to agree a room price in writing with their aged care home. Aged care homes are required to publish their maximum accommodation costs for their various rooms on this website. You and the home can negotiate and agree to a lower price, but you cannot be charged more than the maximum published price.

Do I have to pay the full cost upfront?

No, you have a choice as to how you can pay. The options available are: 

  • a lump sum (a refundable accommodation amount)
    • If the government is helping with the costs, this is called a Refundable Accommodation Contribution (RAC).
    • If you are paying the full amount yourself, it’s called a Refundable Accommodation Deposit (RAD).
       
  • rental-style daily payments (a daily accommodation charge)
    • If the government is helping with the costs, this is called a Daily Accommodation Contribution (DAC).
    • If you are paying the full amount yourself, it’s called a Daily Accommodation Payment (DAP).
       
  • or a combination of both (for instance, to make the total required of $550,000 you could choose to pay $200,000 as a refundable lump sum, and the rest through smaller non-refundable daily payments).

If you choose to pay an amount as a lump sum, any unused money is refundable when you leave the home.

RAD DAP Calculations - Single Suite

   

1 July 2022 to 30 September 2022

   
       

 Agreed Price

 If RAD paid

MPIR

 DAP/day

$550,000.00

$550,000.00

5.00%

$0.00

$550,000.00

$500,000.00

5.00%

$6.84

$550,000.00

$400,000.00

5.00%

$20.54

$550,000.00

$300,000.00

5.00%

$34.24

$550,000.00

$225,000.00

5.00%

$44.52

$550,000.00

$100,000.00

5.00%

$61.64

$550,000.00

$0.00

5.00%

$75.34

 

RAD DAP Calculations - Twin Suite for couples

 

1 July 2022 to 30 September 2022

   
       

 Agreed Price/ Resident

 If RAD paid/ Resident

MPIR

 DAP/day/ Resident

$450,000.00

$450,000.00

5.00%

$0.00

$450,000.00

$400,000.00

5.00%

$6.84

$450,000.00

$300,000.00

5.00%

$20.54

$450,000.00

$200,000.00

5.00%

$34.24

$450,000.00

$100,000.00

5.00%

$47.94

$450,000.00

$0.00

5.00%

$61.64

 

RAD DAP Calculations - Luxury Single Suite

 

1 July 2022 to 30 September 2022

   
       

 Agreed Price/ Resident

 If RAD paid/ Resident

MPIR

 DAP/day/ Resident

$895,000.00

$895,000.00

5.00%

$0.00

$895,000.00

$800,000.00

5.00%

$13.01

$895,000.00

$500,000.00

5.00%

$54.10

$895,000.00

$300,000.00

5.00%

$81.50

$895,000.00

$100,000.00

5.00%

$108.90

$895,000.00

$0.00

5.00%

$122.60

 

 

RAD DAP Calculations - Superior Single Suite

 

1 July 2022 to 30 September 2022

   
       

 Agreed Price/ Resident

 If RAD paid/ Resident

MPIR

 DAP/day/ Resident

$695,000.00

$695,000.00

5.00%

$0.00

$695,000.00

$600,000.00

5.00%

$13.01

$695,000.00

$500,000.00

5.00%

$26.71

$695,000.00

$300,000.00

5.00%

$54.10

$695,000.00

$100,000.00

5.00%

$81.50

$695,000.00

$0.00

5.00%

$95.20