Publication of accommodation prices:
For those Residents who entered care after 1 July 2014. The accommodation prices and descriptions must also be available on the respective aged care provider's website and in materials provided to prospective residents and their families.
The published information must include the maximum accommodation price as a refundable deposit, an equivalent daily payment and an example of a combination payment of both. The final accommodation price the residential home charges for any room may be less than the published amount, you can negotiate this, along with any extra services or amenities, as part of Your Accommodation Agreement. They will not be able to charge a resident an accommodation payment for a room if the residential home have not published the maximum price and accompanying information for that type of room.
When you move into an aged care home, you can be asked to pay a basic fee, a means tested care fee based on assets and income, an accommodation payment, and/or fees for extra or additional (optional) services.
Extra information on Costs - click on "How much does it Cost?"
A basic fee – paid by all people who receive residential care. For some people, this is the only fee they may need to pay.
What are ‘fixed’ costs?
and do be aware of the Adjustment payment -
A means tested care fee - an extra contribution towards the cost of care that residents may need to pay, on top of the basic fee, depending on income and assets.
New aged care means assessment forms:
The Department of Human Services (DHS) has released the new Aged Care Calculation of your cost of care (SA486) digital form. Your clients can fill it in online, print and sign it and send it to DHS with their supporting documents. The digital form uses dynamic questions tailored to the customers’ individual circumstances.
For clients who would prefer to use our simplified paper forms, they are as follows:
Customers entering Residential Care don’t need to fill in a form if they:
It is important to make sure their income and assets are up to date when they enter into care to ensure their assessment can be completed automatically. They can do this by accessing their Centrelink online account or by calling Centrelink on 132 300or DVA on 1800 555 254.
Department of Health
11 July 2019
- - - - - - - - - - - - - - - - - - -
An accommodation payment - a payment for accommodation in an aged care home. Some people will have their accommodation costs paid in full, or in part, by the Australian Government. Others will need to pay the accommodation price they negotiate with their aged care home.
Additional services fees in aged care homes – an extra payment residents can be asked to pay if a higher standard of accommodation is chosen or get additional services such as hairdressing or pay TV in rooms is elected.
Providers cannot charge additional fees for services or activities that are part of the normal operation of an aged care home, or are required to be delivered as part of a provider's responsibilities.
This does not prevent providers from offering a range of goods or services to residents for additional fees. Residents can agree to receive 'other care and services' for additional fees where they receive a direct benefit, or where they have the capacity to take up or make use of the services on offer.
This gives the providers the flexibility to seek additional revenue and allow residents and their families to choose from a range of options based on their preferences, while protecting residents from paying fees for services that they do not receive a direct benefit from.
17 February 2019
What information must be published?
Descriptive information
For each group of rooms or part of a room (a bed in a shared room or ward) that they are offering at different prices, they will be asked to provide the following information:
the kind of accommodation offered (e.g. private or shared) and maximum occupancy;
the type of bathroom (e.g. ensuite or shared);
a statement describing the quality, condition, size and amenity of the room and any common areas which a person in that room could access;
a description of any specific accommodation or design features of the room or the areas of the facility someone occupying this room will be able to access;
any additional care or services (other than those specified in the Quality of Care Principles 1997) included in the accommodation payment; and
whether there are any additional costs associated with the room (e.g. extra service fees).
Pricing information
For each group of rooms, the residential home will need to provide the following information:
the maximum price that they will charge for accommodation in that room, quoted as both refundable deposit and daily payment amounts; and
an example of a combination payment (for example, the price of the room if the resident paid 50% of the accommodation payment as a refundable deposit and 50% of the accommodation payment by periodic daily payments).
Financial equivalence between the refundable deposit and the daily payment
Prices must be published as both the refundable deposit amount and an equivalent daily payment, as well as show an example of a combination payment.
To calculate the equivalent daily payment, the refundable deposit is multiplied by the current maximum permissible interest rate (MPIR) and divided by 365 days.
- MPIR 4.98% for all new residents from 1 October 2019 to 31 December 2019
- MPIR 4,98% Maximum rate of interest that may be charged on outstanding amount of daily payment from 1 October 2019 - 31 December 2019
For example, a refundable deposit of $400,000 would have an equivalent daily payment of:
Refundable deposit x MPIR = $400,000 x 4.98% = $54.57 per day
365 365
An example of a combination payment for a $400,000 price may be a refundable deposit of $200,000 and a daily payment of the remaining $200,000 of:
Balance of price x MPIR = $200,000 x 4.98% = $27.28 per day
365 365
Another example of a combination payment for a $550,000 price may be a combination of a Refundable Accommodation Deposit (RAD) of $450,000 and a Daily Accommodation Payment (DAP) of $16.32 per day, with the Daily Accommodation Payment (DAP) determined as follows:
Balance of price x MPIR = ($550,000 - $450,000) x 4.98% = $13.64 per day
365 365
The MPIR is calculated quarterly. All aged care providers are notified of the MPIR prior to the commencement of each quarter (eg 1 October 2019 to 31 December 2019).
Q: Does a resident’s DAP need to be re-calculated each time the maximum permissible interest rate (MPIR) changes?
A: No. The MPIR used to work out the equivalence between a refundable deposit and daily payment amounts for a resident is that which is current on the day the resident agreed an accommodation payment with the aged care home. The same MPIR continues to apply unless the person subsequently moves rooms within the aged care home.
Aged care providers will not be able to publish or charge a maximum accommodation price that is higher than $550,000 unless they have received approval from the Aged Care Pricing Commissioner.
1 July 2021
For those Residents who entered care after 1 July 2014. The accommodation prices and descriptions must also be available on the respective aged care provider's website and in materials provided to prospective residents and their families.
The published information must include the maximum accommodation price as a refundable deposit, an equivalent daily payment and an example of a combination payment of both. The final accommodation price the residential home charges for any room may be less than the published amount, you can negotiate this, along with any extra services or amenities, as part of Your Accommodation Agreement. They will not be able to charge a resident an accommodation payment for a room if the residential home have not published the maximum price and accompanying information for that type of room.
When you move into an aged care home, you can be asked to pay a basic fee, a means tested care fee based on assets and income, an accommodation payment, and/or fees for extra or additional (optional) services.
Extra information on Costs - click on "How much does it Cost?"
A basic fee – paid by all people who receive residential care. For some people, this is the only fee they may need to pay.
What are ‘fixed’ costs?
- Care costs that are not tailored to individual resident needs.
- Care costs that are not affected by changes in the needs of individual residents:
- Direct – eg, night staffing, dining room supervision
- Indirect – eg, clinical educators, care co-ordinators, quality managers, infection control, remote salary loadings, staff leave.
- May vary based on location, size, specialisation of facility
- Actual proportions of fixed and variable cost will come from resource utilisation study.
and do be aware of the Adjustment payment -
- One–off initial payment
- Time-limited costs involved with residents transitioning into care, eg:
- Time spent getting to know the resident and their family
- Individualised care planning
- Behaviour management
- Health care assessments
- Facilitating health care arising from assessments:
- Pain control, dental care, palliative care etc
- Developing an advanced care directive in partnership with the resident and their family
A means tested care fee - an extra contribution towards the cost of care that residents may need to pay, on top of the basic fee, depending on income and assets.
New aged care means assessment forms:
The Department of Human Services (DHS) has released the new Aged Care Calculation of your cost of care (SA486) digital form. Your clients can fill it in online, print and sign it and send it to DHS with their supporting documents. The digital form uses dynamic questions tailored to the customers’ individual circumstances.
For clients who would prefer to use our simplified paper forms, they are as follows:
- Home Care Package Calculation of your cost of care (SA456)
- Residential Aged Care Calculation of your cost of care (SA457)
- Residential Aged Care Property details for Centrelink and DVA customers (SA485)
Customers entering Residential Care don’t need to fill in a form if they:
- get a means tested income support payment, and
- don’t own their own home.
It is important to make sure their income and assets are up to date when they enter into care to ensure their assessment can be completed automatically. They can do this by accessing their Centrelink online account or by calling Centrelink on 132 300or DVA on 1800 555 254.
Department of Health
11 July 2019
- - - - - - - - - - - - - - - - - - -
An accommodation payment - a payment for accommodation in an aged care home. Some people will have their accommodation costs paid in full, or in part, by the Australian Government. Others will need to pay the accommodation price they negotiate with their aged care home.
Additional services fees in aged care homes – an extra payment residents can be asked to pay if a higher standard of accommodation is chosen or get additional services such as hairdressing or pay TV in rooms is elected.
Providers cannot charge additional fees for services or activities that are part of the normal operation of an aged care home, or are required to be delivered as part of a provider's responsibilities.
This does not prevent providers from offering a range of goods or services to residents for additional fees. Residents can agree to receive 'other care and services' for additional fees where they receive a direct benefit, or where they have the capacity to take up or make use of the services on offer.
This gives the providers the flexibility to seek additional revenue and allow residents and their families to choose from a range of options based on their preferences, while protecting residents from paying fees for services that they do not receive a direct benefit from.
17 February 2019
What information must be published?
Descriptive information
For each group of rooms or part of a room (a bed in a shared room or ward) that they are offering at different prices, they will be asked to provide the following information:
the kind of accommodation offered (e.g. private or shared) and maximum occupancy;
the type of bathroom (e.g. ensuite or shared);
a statement describing the quality, condition, size and amenity of the room and any common areas which a person in that room could access;
a description of any specific accommodation or design features of the room or the areas of the facility someone occupying this room will be able to access;
any additional care or services (other than those specified in the Quality of Care Principles 1997) included in the accommodation payment; and
whether there are any additional costs associated with the room (e.g. extra service fees).
Pricing information
For each group of rooms, the residential home will need to provide the following information:
the maximum price that they will charge for accommodation in that room, quoted as both refundable deposit and daily payment amounts; and
an example of a combination payment (for example, the price of the room if the resident paid 50% of the accommodation payment as a refundable deposit and 50% of the accommodation payment by periodic daily payments).
Financial equivalence between the refundable deposit and the daily payment
Prices must be published as both the refundable deposit amount and an equivalent daily payment, as well as show an example of a combination payment.
To calculate the equivalent daily payment, the refundable deposit is multiplied by the current maximum permissible interest rate (MPIR) and divided by 365 days.
- MPIR 4.98% for all new residents from 1 October 2019 to 31 December 2019
- MPIR 4,98% Maximum rate of interest that may be charged on outstanding amount of daily payment from 1 October 2019 - 31 December 2019
For example, a refundable deposit of $400,000 would have an equivalent daily payment of:
Refundable deposit x MPIR = $400,000 x 4.98% = $54.57 per day
365 365
An example of a combination payment for a $400,000 price may be a refundable deposit of $200,000 and a daily payment of the remaining $200,000 of:
Balance of price x MPIR = $200,000 x 4.98% = $27.28 per day
365 365
Another example of a combination payment for a $550,000 price may be a combination of a Refundable Accommodation Deposit (RAD) of $450,000 and a Daily Accommodation Payment (DAP) of $16.32 per day, with the Daily Accommodation Payment (DAP) determined as follows:
Balance of price x MPIR = ($550,000 - $450,000) x 4.98% = $13.64 per day
365 365
The MPIR is calculated quarterly. All aged care providers are notified of the MPIR prior to the commencement of each quarter (eg 1 October 2019 to 31 December 2019).
Q: Does a resident’s DAP need to be re-calculated each time the maximum permissible interest rate (MPIR) changes?
A: No. The MPIR used to work out the equivalence between a refundable deposit and daily payment amounts for a resident is that which is current on the day the resident agreed an accommodation payment with the aged care home. The same MPIR continues to apply unless the person subsequently moves rooms within the aged care home.
Aged care providers will not be able to publish or charge a maximum accommodation price that is higher than $550,000 unless they have received approval from the Aged Care Pricing Commissioner.
1 July 2021