Refundable Accom Deposit and Daily Accom Payment

I am currently evaluating an Aged Care Home for my wife who has dementia. The facility offers a range of rooms with RAD’s ranging from $350,000 to $600,000, with Daily Accom Payments from $53 to $91.The Fee estimator shows, that for my circumstances, the Accomodation contribution would be $44.71 per day. However, I am unclear how to use this in my estimate of what I can afford. Does this mean that the maximum DAP that I would have to pay is $44.71? If so, does this mean that I have to accept the lowest priced room ($53) and only pay $44.71, or can I negotiate for a higher cost room and still pay $44.71?I would prefer to pay the Refundabe RAD, but cannot raise $400,000. I presume that the $44.71 converts to a Govt subsidised RAD, but how. I look forward to your advice.

But how do we apply the Accommodation Contribution figure to the list “price” for the room? I don’t understand how to work out the cost? If a room is $47.24 does this mean it is less than thebasic fee and will cost only $47.24? Or is the $47.24 on top of the basic fee?

Hi Bruce,
Thank you for your question. The good news is that all accommodation points can be negotiated with a specific residential aged care home. We definitely recommend it. Knowing the residential aged care home’s estimated RADs (or DAPs if you choose to pay the fee as a daily amount) is just a starting point of the negotiations. Also, remember you have the choice of paying the accommodation fee as a combination of both a RAD and a DAP. So using a RAD of $350,000 as an example, you might choose to pay $100,000 as a RAD and then the DAP would be paid on the remaining $250,000. Speaking to a Financial Advisor who specialises in aged care is always recommended as they can give the best advice, tailored for your specific financial situation. We hope this helps.