Fees and charges
Fees and charges in residential aged care will vary according to your personal needs and circumstances, and the care home in which you choose to reside. Generally, you will be required to pay for your basic living expenses, your care and your accommodation. You may also want to take advantage of extra services your care home provides.
Government financial support may be available
You may be eligible for government support to cover some, or all, of your care and accommodation fees. To apply for this support, you need to complete this and submit it to the Department of Human Services (DHS).
As it takes 2-4 weeks for the DHS to assess your eligibility, it’s a good idea to complete the form long before entering aged care. If you choose not to complete the form, that’s okay too, but it’s likely you will have to cover all the fees yourself.
Get an estimate of your fees online
There’s a lot to consider when entering aged care, and we understand that you may not have time to complete the combined income and asssessment form before moving into your Japara Care Home. Fortunately, the Department of Human Services has developed this handy online calculator . Using it will give you a good indication of the fees you can expect once your assessment form has been processed. Alternatively, contact your local Japara Care Home Manager. They’ll provide you with an estimate of your fees, based on the information you provide. Or call us on (03) 96492100.
The four types of fees you may need to pay
Set out below is a summary of the fees associated with aged care. We explain what they cover, how they are calculated and whether you will have to pay them. Depending on your financial situation these fees can be complex, and we recommend you seek advice from an accredited financial advisor. That way, you can be confident of having made the best possible decision about your aged care.
The basic daily fee
Covers day-to-day living costs such as meals, cleaning, laundry, heating and cleaning. Every Japara Care Home resident can be asked to pay this fee. Payment is required one month advance and can be made by direct debit or via Centrepay.
The means-tested care fee
Contributes to day-to-day care costs. The Department of Human Services determines whether Japara will ask you to pay this fee. If so, payment is required one month advance via direct debit.
Cover all accommodation-related costs. The Department of Human Services determines whether Japara will ask you to pay these fees. Their assessment also determines the payment options available to you.
Fees for other services
Include the cost of Japara Signature services, which are available at some of our care homes. Your preferred accommodation type determines whether we will ask you to pay these fees. If so, you can pay one month in advance via direct debit, or we can deduct the fees from your Refundable Accommodation Deposit. See below for details.
Accommodation funding options for non-concessional residents
Every room at a care home is allocated a price based upon the room type and its features. If you’re a non-concessional resident, three payment options are available to you, and you must nominate one of these within 28 days of entering care. The following example—based on a room price of $350,000—illustrates each option in detail:
Option 1: Refundable Accommodation Deposit (RAD)
You pay us a lump sum of $350,000 upon entry to your Japara Care Home. This lump sum is fully refundable once you leave. You have six months to pay the RAD after you enter care, but you will be charged interest on the outstanding amount at a rate determined by the Department of Health. As at 1 October 2017, the rate is 5.70%.
Option 2: Daily Accommodation Payment (DAP)
Essentially, you pay the Maximum Permissible Interest Rate (MPIR), as set by the Department of Health, on the $350,000 room price. The daily payment is calculated by: (RAD X MPIR)/365 = DAP.
Option 3: Combination payment
You can elect to pay part RAD and part DAP, where you would pay the DAP on the remaining RAD. This is calculated by: (Balance of RAD x MPIR)/365 = DAP. Therefore, if you were to pay $200,000 as a RAD/lump sum on a $350,000 room, the DAP equates to: [($350,000 – $200,000) x 5.70%] / 365 = $23.42 per day.
Methods of payment
A Refundable Accommodation Deposit (RAD) can be paid by cheque or EFT. Other accommodation fees should be paid one month in advance, via direct debt. As detailed immediately below, if you have paid a RAD, you have the option to deduct your other accommodation fees from your RAD balance.
Deducting fees from your Refundable Accommodation Deposit (RAD)
If you pay a RAD you can elect to have certain other fees deducted from your RAD balance. This includes your DAP as part of a combination arrangement, and fees for Japara Signature services. Your refund will be smaller when you leave your care home, but it may be easier to manage your bills.
How much can you pay outright?
How much can you optionally contribute? (Based on current MPIR of 5.72%)
Daily Accomodation Payment
Based on the asking RAD of $0 and an optional part payment deposit of $0, the DAP is $0.00. This DAP calculation is to be used as a guide only. Read more about fees and charges to understand how this is calculated.