Moving into aged care in Australia can be a complex and overwhelming
process, but there are several things you should know to help make the
transition smoother.
First, it’s essential to understand the different types of aged care services
available in Australia, including home care, residential aged care, and
respite care. Each type of care has different eligibility criteria, costs, and
benefits, so it’s crucial to research and understand which type of care best
meets your needs.
Second, you’ll need to undergo an assessment by the Aged Care
Assessment Team (ACAT) to determine your eligibility for government-
funded aged care services. ACAT assessments can take time, so it’s best
to start the process early.
Third, you’ll need to consider the costs associated with aged care.
Depending on your financial situation, you may be required to contribute
to the cost of your care. It’s important to understand the costs and fees
associated with aged care and explore any available financial assistance
options.
One of those fees is the RAD which stands for Refundable Accommodation
Deposit, and it is a key concept in relation to aged care in Australia.
When an individual moves into residential aged care, they may be
required to pay an accommodation fee to cover the cost of their room and
amenities. This fee can be paid as either a lump sum RAD, a daily
accommodation payment (DAP), or a combination of both. The price is
for residents who are not eligible for Australian Government
assistance.
Each residential aged care provider sets their own price for different
kinds of rooms. You must publish the prices as:
a lump-sum RAD amount
an equivalent daily accommodation payment (DAP)
an equivalent combination of both
The resident chooses the payment option they prefer.
The RAD is refunded when the individual leaves aged care or passed on to
their estate. The amount of the RAD is determined by the aged care
provider and can vary depending on factors such as location, facilities,
and demand.
The RAD is regulated by the Australian Government’s Aged Care Pricing
Commissioner, who sets maximum amounts that providers can charge for
RADs. The current maximum RAD amount is $550,000, but providers may
charge lower amounts (Source: https://www.ihacpa.gov.au/).
It’s important to note that the RAD is different from the means-tested care
fee, which is a separate fee based on an individual’s income and assets.
The means-tested care fee is not refundable and is used to help cover the
cost of care.
Before approaching an Aged Care provider or undergoing your
assessment by ACAT, it is important to seek financial planning advice.
Seeking advice can potentially save you thousands in fees. There are
financial planners who specialise in providing Aged Care advice and in the
future they can be found at www.findagedcare.services website.
Finally, it’s essential to choose the right aged care provider for your
needs. Research providers in your area, read reviews, and consider
factors such as staff qualifications, facilities, and services offered.
Overall, moving into aged care in Australia can be a complex process, but
with the right information and preparation, you can make the transition as
smooth as possible.
