Minimum amount of net assets required to remain

The residential aged care fees notice we received on completion of the assets assessment says “the provider must leave you with a minimum amount of nets assets of $47,5000 (if you choose to pay the RAD as a lump sum in full or part”. Since the house isn’t sold yet and mum starts permanent care Friday, how much of the RAD are we allowed to pay with current cash assets of $150,000? Would that be only $102,500.?
We had hoped to pay more of the RAD up front and fund the DAP by a contriburion from the family until the sale of the house but it sounds like a higher RAD contribution isn’t allowed. The aged care home seemed to indicate could put up more for the RAD. Thanks.

The same thing happepned to me. They had to leave the 47000 odd in assets after I part paid the RAD, but they allowed me to pay a further sum to top up to the full RAD after 29 days or so. this meant that I only had to pay the DAP for about 5

Hi Umbrellaharry,It is possible from your information that your mother could fall under the ‘partially supported resident’ status. There is a minimum amount you must have available to you for expenses after aged care fees are paid and currently that amount is $47,500. Your mother may not have to pay a Refundable Accommodation Deposit (RAD) but may have to make a more modest Daily Accommodation Contribution (DAC) instead (at an estimate between $15 - $20 a day). You would still have to pay the Basic Daily Care fee everyone does (currently $49.42). I dont think its likely you would be asked to pay a Means Tested Care fee.However I would call the Department of Human Services on 1800 227 475 t

means testing my mother is about to enter an aged care facility and we are trying to assess what the contributions will be. she is acat tested and able to be accepted. Currently has a retirement village home which we will sell for around160000 and mum has around $20000 in cash. no other assets or income. We understand 85%of her pension will go to the daily fee cost. the accommodation cost is$450000 which we intend putting the proceeds from the home sale to(160000) and then trying to pay the component difference at the rate of 5.72%.this is still a large daily payment to make with no income , Does the government subsidise this component in any way? ie is it then means tested and if so what is the critera. Its all a bit confusing so any help would be appreciated.

Hi Elena,

What you have outlined above sounds correct to me. To double check, I jumped onto My Aged Care and they have stated the below which again backs up what has been communicated to you "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 after paying the lump-sum amount.

This means that depending on your income and assets, you may not be able to pay by lump-sum in total, but you may be able to pay a combination lump-sum and daily amounts.

I hope this helps clear things up for you.
The agedcare101 team