We understand that aged care fees can be confusing. That’s why we’ve provided a fee calculator to help you navigate the potential cost of your accommodation. If you would like to speak to someone about Aged Care fees, our friendly, Client and Community Advisors would be happy to help. Call us on 1800 960 433 or click below to get in touch.
Lutheran Services Residential Aged Care Services are government approved and subsidised services offering care and support to eligible people.
A potential resident’s financial situation does not affect their ability to live in a Lutheran Services Residential Aged Care Service, but it will impact what they may have to pay for the service. When entering aged care you will pay for two things:
How much you pay will be decided by Services Australia by completing an income and assets assessment and obtaining a fee advice letter.
This is the cost of your room and is set by individual providers based on the types of rooms available, and the geographic location of the service. The accommodation charge comes in the form of a refundable lump sum, non-refundable daily payments, or a combination of both.
A Combined Income and Assets Assessment will place you in one of three categories that will determine the amount you will be asked to pay:
This is for your day to day living costs such as meals, cleaning, laundry, heating and cooling. The fee is set by the Australian Government and is the same across all aged care communities. Generally, it’s set at 85% of the single person rate of the basic age pension.
This is an extra contribution towards the cost of care that residents may need to pay, on top of the basic daily fee, depending on income and assets. This fee is also set by the Government.
An optional fee to cover “hotel-style” extra services such as alcoholic beverages, daily newspaper delivery, hairdressing services and more.
If you are required to contribute towards your Accommodation fees, there are three payment options you can choose from:
1. Refundable Accommodation Deposit (RAD)
You pay this as a lump sum. It’s a standard room price set by the aged care home and it’s fully refunded when you leave.
2. Daily Accommodation Payment (DAP)
This option is the equivalent of the option above…but paid in daily instalments. It’s an interest only payment and is non-refundable. For example, if a room cost $400,000, and the interest rates are 5% your daily fee would be charged at 5% of the $400,000 or $54.79 a day.
3. Combination Payment (RAD & DAP)
This option lets you split the accommodation cost between a Refundable Accommodation Deposit (RAD) and Daily Accommodation Payments (DAP). For example, for a $400,000 room, you could pay $100,000 as a refundable lump sum (RAD) and cover the remaining $300,000 through smaller, ongoing daily payments (DAP), offering flexibility to suit your finances. Only the partial lump sum (RAD) payment is refundable when you exit.
This tool helps you to explore what your daily accommodation payment (DAP) would be if you choose not to pay the full Refundable Accommodation Deposit (RAD).
Lutheran Services has been serving our community since 1935. Since then, we have continued the Lutheran tradition of care, now providing services and support to over 6,000 people every year.
