Residential Care Costs
Following the “Living Longer, Living Better” aged care reforms passed in 2013, changes apply to residents entering residential aged care from 1 July 2014 onward. These changes include how care recipients are financially assessed. The government will continue to undertake the assessment of how a care recipient can contribute to costs incurred for accommodation and care, but this will be by an overall means test rather than being based solely on income or assets. There will also be no distinction made at entry for people requiring a high or a low level of care; all care recipients will only be assessed as requiring residential care.
These reforms have an effect on the costs that a resident may be liable to incur. All aged care costs are detailed below.
Accommodation payment
The accommodation payment is to cover capital costs of past and future building.
All care recipients entering care will be assessed to see whether they are liable for an accommodation cost or not. The test is undertaken by the Department of Human Services using a combined income and asset assessment (a link to the application form for this is here). It is recommended that an application for this is made prior to entering residential care as it takes around 6 weeks to be processed. Additionally, until the result of the combined income and asset assessment is known, all residential care recipients are liable for the accommodation payment by default, although this is fully refundable if the outcome of the assessment indicates no liability.
If it is deemed that the care recipient is not liable to pay the full amount of an accommodation payment, then the care recipient is classified as a supported care recipient. As a mission based organisation and registered charity, Italian Aged Care is committed to maintaining around 40% of the beds at Villa Terenzio for supported care recipients.
The accommodation payment can be paid as a lump sum (“RAD” or Refundable Accommodation Deposit), or as a daily fee (“DAP” or Daily Accommodation Payment), or as a combination of RAD and DAP. Please note that the care recipient has 28 days from entry to elect how the accommodation payment will be made and until an election they will be charged the DAP.
Italian Aged Care has a number of different standards of rooms offered and each room has a maximum accommodation charge attached to it. It is important to stress that each room has a maximum accommodation charge, but no minimum charge, which gives us the ability to negotiate based on each care recipient’s circumstances. Consequently, every care recipient entering permanent residential care is liable to meet an accommodation charge ranging between $0 and the maximum accommodation charge published for that room. We recognise that each care recipient has individual circumstances, so feel free to discuss this with us.
In accordance with Commonwealth legislation, we are obliged to publish maximum accommodation charges. Please note that our maximum accommodation charges for all places are $550,000 RAD, which is equivalent to a DAP of $89.81 per day or a combination of 50% RAD / 50% DAP would be $275,000 RAD and $44.90 DAP.
However, depending on individual circumstances and ability to pay an accommodation payment, we are always able to negotiate to a set lower level dependent on the room and its amenity. The set lower levels are shown in the table below and have been expressed as: 100% RAD or 100% DAP or a combination of RAD and DAP. Please note that for the example of a combination we have used 50% RAD and 50% DAP, although any combination is available. These are current as at 1 August 2018.
These reforms have an effect on the costs that a resident may be liable to incur. All aged care costs are detailed below.
Accommodation payment
The accommodation payment is to cover capital costs of past and future building.
All care recipients entering care will be assessed to see whether they are liable for an accommodation cost or not. The test is undertaken by the Department of Human Services using a combined income and asset assessment (a link to the application form for this is here). It is recommended that an application for this is made prior to entering residential care as it takes around 6 weeks to be processed. Additionally, until the result of the combined income and asset assessment is known, all residential care recipients are liable for the accommodation payment by default, although this is fully refundable if the outcome of the assessment indicates no liability.
If it is deemed that the care recipient is not liable to pay the full amount of an accommodation payment, then the care recipient is classified as a supported care recipient. As a mission based organisation and registered charity, Italian Aged Care is committed to maintaining around 40% of the beds at Villa Terenzio for supported care recipients.
The accommodation payment can be paid as a lump sum (“RAD” or Refundable Accommodation Deposit), or as a daily fee (“DAP” or Daily Accommodation Payment), or as a combination of RAD and DAP. Please note that the care recipient has 28 days from entry to elect how the accommodation payment will be made and until an election they will be charged the DAP.
Italian Aged Care has a number of different standards of rooms offered and each room has a maximum accommodation charge attached to it. It is important to stress that each room has a maximum accommodation charge, but no minimum charge, which gives us the ability to negotiate based on each care recipient’s circumstances. Consequently, every care recipient entering permanent residential care is liable to meet an accommodation charge ranging between $0 and the maximum accommodation charge published for that room. We recognise that each care recipient has individual circumstances, so feel free to discuss this with us.
In accordance with Commonwealth legislation, we are obliged to publish maximum accommodation charges. Please note that our maximum accommodation charges for all places are $550,000 RAD, which is equivalent to a DAP of $89.81 per day or a combination of 50% RAD / 50% DAP would be $275,000 RAD and $44.90 DAP.
However, depending on individual circumstances and ability to pay an accommodation payment, we are always able to negotiate to a set lower level dependent on the room and its amenity. The set lower levels are shown in the table below and have been expressed as: 100% RAD or 100% DAP or a combination of RAD and DAP. Please note that for the example of a combination we have used 50% RAD and 50% DAP, although any combination is available. These are current as at 1 August 2018.
|
Section
|
Description
|
RAD
only |
DAP only
|
Combination
(example: 50% RAD / 50% DAP) |
|
Villa Terenzio - Houses
|
Each of the four houses has 10 single rooms each with an en-suite. There is a communal kitchenette, lounge and dining room available in each house along with their own garden and outside areas.
|
$425,000
|
$69.40
|
RAD $212,500
and DAP $34.70 |
|
Villa Terenzio - John Re
|
Single room with en-suite. There is a communal lounge, dining room, dementia specific activity programme, garden and outside areas.
|
$460,000
|
$75.11
|
RAD $230,000
and DAP $37.56 |
|
Villa Terenzio - SCU
|
Single room with en-suite. There is a communal lounge, dining room, dementia specific activity programme, secured garden and outside areas.
|
$450,000
|
$73.48
|
RAD $225,000
and DAP $36.74 |
|
Villa Terenzio - SCU
Villa Terenzio - SCU |
Shared double room with shared en-suite. There is a communal lounge, dining room, dementia specific activity programme, secured garden and outside areas.
Shared double room designed for a couple with oversized en-suite and bespoke cabinetry. The room was purpose built in June 2016. There is a communal lounge, dining room, dementia specific activity programme, secured garden and outside areas. |
$385,000
$550,000
|
$62.87
$86.95
|
RAD $192,500
and DAP $31.43 RAD $275,000
and DAP $43.42 |
|
Villa Terenzio - SCU
|
An extra spacious single room with extra large en-suite and a bay window. There is a communal lounge, dining room, dementia specific activity programme, secured garden and outside areas.
|
$550,000
|
$86.95
|
RAD $275,000
and DAP $43.42 |
|
Villa Terenzio - Nursing Home
|
Single room without en-suite. There is a communal lounge, dining room, activity programme, garden and outside areas.
|
$300,000
|
$48.99
|
RAD $150,000
and DAP $24.49 |
|
Villa Terenzio - Nursing Home
|
Shared double room without en-suite. There is a communal lounge, dining room, activity programme, garden and outside areas.
|
$245,000
|
$40.01
|
RAD $122,500
and DAP $20.00 |
Daily fee
The daily fee is to cover living costs such as meals, laundry, and utilities.
This fee is Commonwealth Government gazetted rates and is equivalent to 85% of the aged pension rate. The current fee is $50.16 per day (current from 20 March-19 September 2018) and all care recipients are required to pay this.
Care fees (means-tested contribution)
The means tested care fee may be charged to care recipients with higher means as a contribution towards the cost of direct care.
The fee reflects the care recipient's ability to make a contribution to the cost of their direct care and is determined by the Department of Human Services from the combined income and assets assessment. There are annual and lifetime caps on the amount a care recipient contributes.
This fee effectively assists public expenditure in aged care, as care subsidies that we receive from the government are reduced by the amount contributed by care recipients in means tested care fees.
Extra services fees
An extra services fee may be charged where all care recipients in an area benefit from superior accommodation and services, but this is subject to meeting stipulated criteria and government approval.
There are no extra services areas approved at Villa Terenzio. However, it should be noted that currently our food and services fulfill and exceed the minimum criteria for extra services (for example: extensive menu choices, snacks, wine served with lunch and dinner, wide-ranging and extensive lifestyle programs, satellite channel to communal areas and bedrooms).
Additional services fees
An additional service fee may be charged where only an individual care recipient benefits from a specific service beyond the services that aged care providers are obliged to provide.
Additional services may include hairdressing, newspapers, personal telephone and the costs of providing these are recharged to the care recipient. Please inquire as to the range of additional services available. Alternatively, if you have a specific service requirement that we don't currently offer we would be pleased to examine the possibility of meeting such need.