Many seniors have finite funds. They may be able to pay for their own care for a period of time but find their money does run out at some stage. If an individual is unable to continue paying for their aged care services, they may become eligible for hardship assistance.
If you cannot pay your aged care costs for reasons beyond your control, you may be able to get financial hardship assistance. If eligible, this can include: stopping or reducing your fees. financial help paying all or some of your fees.
What if I can't afford to pay the RAD in full? If your income and assets are above the threshold for government support, but you cannot, or do not wish to pay the RAD applicable to your chosen aged care facility, you can choose to instead pay a Daily Accommodation Payment (DAP).
If you leave your principal home to go into aged care, we may include your home in your assets test. Read about aged care means test assessments. If you leave your principal home due to illness and enter a care situation, we may exempt your home from the assets test.
If the facility has a long waiting list of people who are willing to pay the asking price, they may not negotiate on the price. But if the facility has a number of beds available, they are usually more willing to accept a lower price.
While the RAD is included as an asset, it is not considered a financial asset and therefore no income is deemed to be earned on this amount. Any amount paid as a RAD is also excluded from the age pension asset test and may impact their age pensions.
Daily accommodation payment (DAP)
use this formula: DAP = (RAD × MPIR) / 365.
A DAP is suitable for carers who do not wish, or are unable to pay, a lump sum to the Nursing Home. While some carers would sell the family home to pay via a RAD, some family homes could still be occupied or have sentimental value to the carer. In this instance, a DAP option may be better.
Remember, the RAD is fully refundable and it is Government Guaranteed, so if the facility is government accredited and something goes wrong, you won't lose your money.
The maximum amount of the RAD a resident can be asked to pay must leave the resident with at least the minimum permissible asset level (currently $57,000), which is calculated as 2.25 times (rounded to the nearest $500) the basic single age pension rate at the time of entry.
In Australia, all older people are entitled to access care, regardless of their financial situation. For any individual who does not have the means to pay for aged care, there are options available. The first step is a means test to see if someone is eligible for financial hardship assistance.
The underpayments were caused by RSL LifeCare making fundamental payroll and rostering system errors, including incorrect system set up and incorrect pay rules being entered.
The value of your assets is what you'd get if you sold them at market value. We'll deduct any debt you owe that your asset is security for, from its market value. If you got an unsecured loan specifically to buy the asset, we may also deduct this loan from the value of the asset.
Deeming assets are financial assets including your super as well as dividends, shares and bonds, investment funds and interest from bank accounts. Non-financial assets such as your home and its contents, your car, caravan or boat, antiques and collections are not included in deeming calculations.
Paying RAD
The Refundable Accommodation Deposit (RAD) is a Centrelink exempt asset that can help retain or increase social security entitlements (if any), and reduce the means tested amount. While the RAD is an assessable aged care asset, no income is assessed for the income test.
If an individual moving into residential aged care with assets below the minimum permissible asset amount will not be required to pay an accommodation contribution.
For example, it has the power to obtain your information from other government agencies as well as accessing information from banks, building societies and credit union accounts. It can do this without your prior consent or knowledge. Centrelink's investigation is not limited to recent deposits.
You can request a Statement of Debt for any 5 year period going back to 1998. You can make more than one request.
Bank interest reviews. We check your bank account information is up to date. We do this to check we paid you the right payment and amount in the past.
The Work Bonus income bank is useful for pensioners who wish to work, particularly those who undertake intermittent or occasional work. Note: from 1 December 2022 to 31 December 2023, a one-off, temporary credit of $4,000 applies to Work Bonus income bank balances.
Can I Get the Pension if I Have Super? Having superannuation savings does not deny you from receiving Age Pension payments. Eligibility for the Age Pension is based on an Assets Test and an Income Test.