UNDERSTANDING THE COSTS

Your Guide

24/7 nursing care and medical assistance
More than 30 years of experience
Retain Your Independence
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Pets Allowed
Engaging Lifestyle
EMBRACIA AGED CARE, MELBOURNE

A place to belong and call home.

Your guide to understanding aged care costs and the options that are available:

Basic Daily Fee

This is a government set fee that everyone pays in any aged care home, and covers basic daily living costs in an aged care home.

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This fee is approximately 85 per cent of the aged care pension and is reviewed twice a year by the Australian Government. The basic daily care fee covers things such as meals, laundry service, basic medical and personal care, utilities and the cleaning of your room and communal living areas.

*For the current basic daily fee, please refer to the schedule of fees
https://agedcare.health.gov.au/ aged-care-funding/aged-care- fees-and-charges

Means-Tested Care Fee

The Department of Human Services (Centrelink) determines if you are required to pay this fee and how much it will be based on your completed income and assets assessment form.

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This form can be accessed online  https://www.servicesaustralia.gov.au/sa486 as outlined above. There are limits to the means-tested care fee, including annual and lifetime caps to control the amount you pay. If you are part of a couple, the assessment will consider half of your combined assets and income.

If your Income and Asset Assessment form is not finalised by the government before your move into aged care, you will be charged the full means tested care fee until the accrual assessment is finalised by Centrelink.

*For the current thresholds and caps, please refer to the schedule of fees
https://agedcare.health.gov.au/aged- care-funding/aged-care-fees-and- charges

Minimum Assets

If you choose to pay part or all of your accommodation costs as a lump sum, there is a minimum amount of net assets that you must be left with.

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*Please refer to the schedule of fees for the specific amount
https://agedcare.health.gov.au/ aged-care-funding/aged-care -fees-and-charges

Additional Services

If you like to enjoy the finer things in life, we have a suite of Additional Services available to residents who would like to take up these options.

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Additional Services are extra or over and above the essential services you are provided and prescribed by the Australian Government. They are entirely optional and will be made available individually or as part of a package. You will have to pay extra if you choose to enjoy additional services and will be billed monthly.

*Please see the additional services brochure for specific services and charges.

Accommodation Costs

Based on the outcome of your assets and income assessment, the amount you will be asked to pay for your accommodation will be either,

1. No Accommodation Costs
If your income and assets are below a certain amount, the Australian Government will pay for your accommodation costs.

2. An Accommodation Contribution
Shared by yourself and the Australian Government.
You can choose from 3 methods in which to pay your accommodation contribution:

Refundable Accommodation Contribution (RAC)
The refundable accommodation contribution (RAC) can be paid as a one off lump sum payment that is fully refundable when you leave the home (to yourself or your estate), minus any amounts you agree to have deducted. This RAC is guaranteed by the Australian Government.
Daily Accommodation Contribution (DAC)
If you are eligible for government assistance with your accommodation costs, this rental style payment is called a DAC. This daily payment is invoiced monthly at the maximum permissible interest rate (MPIR) as set by the Australian Government. Daily Accommodation Contributions are non-refundable.
*for the current MPIR please refer to the schedule of fees
Combination Of Both
You can choose to pay your accommodation contribution via a combination of a part lump sum ‘refundable accommodation contribution’ and part rental style payment known as a ‘daily accommodation contribution’. Depending on the amount of your initial one off payment (RAC), we will calculate the ongoing daily payments (DAP) required to cover the balance of the accommodation cost. As with the RAC, the one off lump sum payment is fully refundable at the end of your time at Embracia. The DAC interest payments are non-refundable.

3. An Accommodation Payment
If you are not eligible for government assistance and need to pay the full cost of your accommodation. These costs are dependent on which home and room type you select. If you are required to pay an accommodation contribution or payment, you have 28 days from the day you are admitted into aged care to decide on how you wish to pay. However, until you decide how you want to pay for your accommodation, you must pay your accommodation costs by the rental style payment method.

There are 3 ways in which your accommodation can be paid.

Refundable Accommodation Deposit (RAD)

The refundable accommodation deposit (RAD) can be paid as a one off lump sum payment that is fully refundable when you leave the home (to yourself or your estate), minus any amounts you agree to have deducted. This RAD works like an interest free loan to an aged care home and is guaranteed by the Australian Government. The total amount of the RAD to be paid is negotiated directly with Embracia Aged Care and is to be paid in an upfront lump sum within 28 days of moving into the home.

All room types and RAD prices are listed on our website www.embraciaagedcare.com.au and the My Aged Care website www.myagedcare.gov.au. Again, the rental style method is applied until the upfront lump sum is paid. If you pay 100% RAD on the day of entry, you will not be charged any interest.

Daily Accommodation Payment (DAP)

The Daily Accommodation Payment (DAP) is a rental style payment that essentially covers an interest only cost of your accommodation. This daily payment is charged monthly at the maximum permissible interest rate (MPIR) as set by the Australian Government. Daily Accommodation Payments are not refundable if you leave the aged care home or at any point.

*for the current MPIR please refer to the schedule of fees
https://agedcare.health.gov.au/ aged-care-funding/aged-care -fees-and-charges

Combination Payment (RAD and DAP)

You can choose to pay your total accommodation cost via a combination of a part lump sum ‘refundable accommodation deposit’ and part rental style payment known as a ‘daily accommodation payment’. Depending on the amount of your initial one off payment (RAD), we will calculate the ongoing daily payments (DAP) required to cover the balance of the accommodation cost.

As with the RAD, the one off lump sum payment is fully refundable at the end of your time at Embracia. The DAP interest payments are non-refundable.

EMBRACIA AGED CARE HOMES, MELBOURNE

Family owned and operated for over 30 years

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