Single Resident

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John is 85 and has been assessed as requiring residential aged care. John has completed an ACAT assessment and his family is wondering what his cost of care will be. John is a renter, with a term deposit worth $500,000, a bank account with a balance of $50,000 and no other assets apart from his personal effects worth $5,000.

John and his family have found a suitable aged care facility in a convenient location, and the cost of a room in this facility is $450,000 (RAD). This facility has no Extra Services available to residents of the selected Aged Care home. 

The family have all agreed that they are happy to utilize Johns assets to meet the RAD for John if it helps to reduce the overall Total Cost of Care.

Basic Daily Care Fee

All residents entering Aged Care pay the Basic Daily Care Fee of $61.96 per day. Annually this will amount to $22,615.40 for John.

Means Tested Care Fee

Johns' total assets amount to $555,000, therefore his means tested care fee will be $15.50 per day or $5,567.50 per year if no RAD is paid.

If a RAD of $450,000 is paid, the means tested care fee will be $11.65 per day or $4,252.25 per year.

Accommodation Payment

If no RAD is paid, John will need to pay $103.07 per day for accommodation or $37,620.55 per year.

If the full RAD of $450,000 is paid John will have no accommodation payment to meet.

Total Cost Of Care

No RAD Paid

Basic Daily Care Fee $61.96/day plus Means Tested Care Fee $15.50/day plus Accommodation Payment $103.07/day Equals $180.53/day or $65,893.50 per year.

Full RAD Paid

Basic Daily Care Fee $61.96/day plus Means Tested Care Fee $11.65/day plus Accommodation Payment $0/day Equals $73.61/day or $26,867.65 per year.