Going into aged care requires careful planning and consideration. Some of the potential expenses may include…

Accommodation costs: This may include a daily accommodation payment (DAP) or a lump-sum refundable accommodation deposit (RAD). The DAP covers the cost of living in the care home and the RAD can be used to secure a place in a care home, with the remaining amount refunded when the resident leaves. On average, DAPs can range from around AUD 30 to AUD 200 per day, but can be much higher for luxury care homes or those located in more expensive areas. On average, RADs can range from around AUD 100,000 to AUD 600,000.
Care fees: These fees cover the cost of personal care and can include services such as bathing, dressing, and assistance with medication. The fees vary based on the level of care required and can range from around AUD 20 to AUD 150 per day, and again, can be much higher for luxury care homes or those located in more expensive areas.
Means-tested care fee: Additionally, some individuals may be required to pay a means-tested care fee, which is assessed by the government and can vary based on their income and assets. This fee is in addition to the standard care fee and is used to help offset the cost of care for those who are able to contribute to their own care.
Basic daily fee: The basic daily fee is a fee set by the government to cover the cost of basic daily living expenses such as meals and utilities. The fee is not means-tested and is the same for all residents regardless of their financial situation. As of 2021 the basic daily fee for aged care was $49.60.
Additional services and amenities: Some care homes may offer additional services and amenities, such as hairdressing, laundry, and activities, which may incur additional fees.

It is important to note that the cost of care homes can vary greatly and it is best to research and compare different facilities to determine the expenses that will be incurred. Additionally, some individuals may be eligible for government financial assistance to help cover the cost of care home expenses. The My Aged Care website (www.myagedcare.gov.au) is a good resource for information about the costs of care homes in Australia.

Rick Maggi