Note: This information relates only to Residential Aged Care. The Independent Living Units and Warramunda Apartments are costed differently.
The way in which some fees and payments are calculated for residential aged care are changing on 1 July 2014. The new arrangements mean that your income and assets will be taken into account in establishing the fees and payments you may be asked to pay. The basic daily fee is not affected by these new arrangements.
If your income and assets are over a certain amount you may be asked to make an accommodation payment that you agree with the home. Otherwise the Australian Government will pay for part or all of your accommodation costs.
You may be asked to pay one or more of the following fees in residential care:
This covers living costs such as meals, power and laundry. This is fixed at 85% of your Aged Care Pension. For some people this is the only fee they are required to pay.
Means-tested Care Fee
This is an additional contribution towards the cost of care that some people may be required to pay. The Department of Human Services will work out if you are required to pay this fee based on an assessment of your income and assets, and will advise you of the amount. There are annual and lifetime caps in place to limit the amount of the means-tested care fee you will need to pay.
This is for your accommodation in the home. Some people will have their accommodation costs met in full or part by the Australian Government, while others will need to pay the accommodation price agreed with the aged care home. The Department of Human Services will advise you which applies to you based on an assessment of your income and assets.
Frequently Asked Questions
Will I Have to pay the Accommodation Payment?
Residents who are deemed to have the capacity to pay for their accommodation will be required to make an appropriate Accommodation Payment. All Residents with assets above $46,000 will be assessed on this. Providers must leave every resident with $46,000 in assets after deducting the relevant RAD, from their overall asset base.
How can I pay the accommodation Payment?
New residents will have the choice to pay for their Accommodation Payment by
Lump Sum – Refundable Accommodation Deposit (RAD)
Daily Payment – Daily accommodation Payment (DAP) -essentially an interest payment on the equivalent lump sum RAD
A combination of the above two options
How much is the Accommodation Payment?
From July 1 2014, accommodation payments for Warramunda Village range from $400,000. These prices may be negotiated. Such negotiations are dependent on receipt of a Centrelink Assets Assessment Form. Please check our Calculator to determine your DAP payment.
All rooms are single and include a private ensuite.
What if I am already receiving aged care services?
If you are already receiving aged care services, you will not be charged any more than your service provider can currently charge you.
However, we suggest you read about the reforms to aged care as they may apply to you in the future. If you change the type of service you receive or if you leave and re-enter aged care, then changes resulting from the reforms may apply to you.
Is the home an assessable asset for the purpose of determining a Resident’s ability to pay an accommodation payment?
The former home will be assessed unless a protected person is living there, in which case it is exempt from the assessment.
- A protected person is:
- A spouse or dependent child;
- A carer eligible for an Australian income support payment who resides in the home and has lived there for two years; or
- A close relative who is eligible for an income support payment and has been living in the home for at least five years.
If none of the above applies, the value of the home will be counted as part of the resident’s assets for determining the assets and income.
Please Note: Income Support Payments DO NOT include Carer’s Allowance.
Are joint assets in the Resident’s name and the Resident’s spouse’s name assessable assets for the purposes of determining an Accommodation Payment?
With the exception of the family home as explained above, the value of the combined assets of a couple are assessed, with ½ share of those assets being applied as assessable assets for determining the Accommodation Payment.
Where an asset is held jointly or in common with a person other than the Resident’s partner, the value of the asset is taken as per the Resident’s interest in the asset.
How does an Accommodation Payment affect a Resident’s pension?
Any amount of lump sum RAD that you pay will be an exempt asset for the calculation of your pension. However the payment of RAD will be included in the calculation of assets for your care contribution.(means tested fee)
Residents and their families should contact Centrelink or DVA and advise the amount of the Accommodation Payment as soon as it is paid to Warramunda Village in order for the resident to receive the maximum pension they are entitled to.
When and how is the RAD Refunded?
The RAD is subsequently refunded after deducting any fees owing at the point the Resident leaves Warramunda Village and transfers to another residential aged care provider, or the Resident passes away.
Interest will be paid by Warramunda Village on the refundable accommodation deposit balance @ 3.75% (current rate – subject to change) from the day after the date of discharge until payment is made. If the refund is not paid within 14 days of receipt of the probate document the provider has to pay interest at the MPIR as set by the Government; the current rate is 6.15% (as of 1 July 2015).
Does Warramunda Village provide a written guarantee that the RAD will be refunded?
Yes. In accordance with The Aged Care Act, Warramunda Village provides a written guarantee to the resident (please refer to the residential agreement), that the balance of the Payment (after deduction of any outstanding fees) will be refunded in full and on time. This is in accordance with clause 15 & subject to clause 20 (in the event of a refund to the estate the refund subject to the receipt of the probate document) of schedule six of the agreement.
What does Warramunda Village disclose regarding the Accommodation Payment?
We provide a copy of the Accommodation Payment agreement, which includes a written guarantee (see point 9) and a written statement on what other information is available on request.
In relation to the previous financial year:
Summary of permitted uses of the RAD
Statement explaining investment objectives, if not APRA approved e.g. term deposits
Statement on compliance on permitted uses of bond
Information on accommodation balances that have not been refunded (if any)
Copy of independent audit opinion
Our most recent statement of audited accounts
A copy of your entry in the Accommodation Payment register and a written statement of information available on request.
If a resident pays tax, will the Medical Expenses Rebate reduce the overall cost?
YES. If a resident has sufficient income to be currently paying tax, the assessment can be reduced because the payments made to Warramunda Village qualify for a taxation rebate. Residents and families should speak with their tax advisers.