From 1 July 2014, new rules relating to accommodation payments become effective. How much will I be asked to pay for my accommodation?
The amount you can be asked to pay for your accommodation will be based on your income and assets, and will be one of the following:
- No accommodation costs: if your income and assets are below a certain amount, the Australian Government will pay your accommodation costs.
- An accommodation contribution: if you are required to pay part of the cost of your accommodation, the Australian Government will pay the rest.
- An accommodation payment: if you are required to pay for the full cost of your accommodation.
The Department of Human Services will advise which applies to you based on an assessment of your income and assets.
You cannot be asked to pay both an accommodation payment and an accommodation contribution at the same time.
Paying for the full cost of your accommodation
Residents who enter permanent care at Maroba with an Aged Care Assessment Team approval for residential care after 1 July 2014 have the choice of paying a Refundable Accommodation Deposit (RAD) or a Daily Accommodation Payment (DAP) or a combination of both. Residents have 28 days after admission to change their choice of payment.
What is a refundable accommodation payment
A refundable accommodation payment is the money paid or payable by way of a lump sum when a resident enters residential care. The amount payable will be determined by the type of accommodation at Maroba you choose.
What is daily accommodation payment
A daily accommodation payment is an amount calculated by converting the refundable deposit payment into a daily charge having regard to the maximum permissible interest rate applicable at the time of admission.
How is the refundable accommodation payment amount determined
The amount of the refundable accommodation payment depends on the type of accommodation you choose at Maroba.
There are four types of Accommodation available:-
- Manor Suites – single room,
- Manor Suites – shared room,
- Lodge Suites – single room
- Braye Park Suites – single room (Dementia specific).
The amount that a resident pays as a refundable accommodation payment is included in the new means tested care fee calculation. More information on the new means tested care fee is found on our fees and charges page. Read More about the Accommodation Key Features ….
Are there any deductions from the refundable accommodation payment
Normally there will be no deductions from the capital value of the refundable accommodation payment while the resident is in care. However, residents who choose a combination of RAD and DAP may elect to have the amount of the daily accommodation payment deducted from the balance of the refundable accommodation payment. The balance of the refundable accommodation payment (after agreed deductions have been drawn down) will be refunded to the resident or their estate on termination of the agreement for residential services.
What amount of money will I be left with upon entering the facility
Residents cannot be charged a refundable accommodation payment if it would leave them with less than the permissible asset value of 2.5 times the annual pension. A supported resident will not be asked to pay a refundable accommodation payment because they have assets less than this value.
How long do I have to pay the refundable accommodation payment
Refundable accommodation payments can be paid up to six months from the date of entry. Interest is calculated daily from the date of entry for unpaid RADs and is invoiced monthly. Residents may change their mind about their options for paying a RAD, DAP or combination up to 28 days after admission.
What is the rate of interest
Interest rates for unpaid RADs are determined by the Australian Government. The current rate of interest will be shown in the key features statement for each type of accommodation available.
What are my choices for paying an accommodation payment
Accommodation payments can be paid as lump sum amounts, by daily payment or a combination of both. Where accommodation payments are paid by a combination of RAD and DAP, the amount and frequency of the payment will be advised in the offer of care and is determined in conjunction with the resident. Amounts paid as daily accommodation payments are non-refundable.
When are refundable accommodation payments returned
As outlined in the Resident Agreement that we supply on admission, we guarantee repayment of the Refundable Accommodation Payment Balance in accordance with the following criteria.
The Refundable Accommodation Payment Balance will be refunded if:
- The person being cared for dies; or
- Ceases to be provided with Residential Care in the Care Facility; or
- The Care Facility ceases to be certified under the Act.
The refundable accommodation payment balance will be refunded within the following time frames:
- On death – within 14 days after the day on which a certified true copy of the grant of probate or letters of administration of your estate is produced to us;
- On moving to another residential care service and:
- We have been notified more than 14 days before the day on which you cease to receive care at Maroba; or
- We are notified within 14 days before the day on which you cease to receive care at Maroba– within 14 days after your notification; or
- We are not notified of your intentions – within 14 days after we cease to provide care to you.
At the time the refundable accommodation payment balance is refunded, we must also pay to you interest on the outstanding refundable accommodation payment balance calculated at the Base Interest Rate for the period from the day after the occurrence of that event until the date on which the refundable accommodation payment balance is refunded in full.
How do I know if Maroba is managing my accommodation payment money responsibly?
Since 1 October 2011 the Disclosure Standard contained within the User Rights Principles has required that residents paying accommodation payments must receive a statement that the approved provider will provide certain information within seven days of a request (refer section 23.42(1)(c) of the User Rights Principles).
Under the Aged Care Act 1997 (the Act), residents and prospective residents or their representatives are entitled to receive particular information from their approved provider on request.
This includes, in relation to the previous financial year:
- A summary of the permitted uses for which Maroba has used refundable accommodation payments
- Information about whether Maroba complied with the requirements for permitted uses of refundable accommodation payments and with the prudential requirements for refundable accommodation payments
- Information about the number of refundable accommodation payment balances (if any) that were not refunded in accordance with the time frames set by the Act. For entry contributions (payable before 1997), information about the number (if any) that were not refunded in accordance with the entry contribution agreement
- A copy of the independent audit opinion on Maroba’s compliance with the prudential requirements for accommodation payments
- Most recent statement of audited accounts of Maroba.
Statement of compliance
According to 14A.8(1)(b) of the Fees and Payments Principles 2013, we dertify that the prices published have been determined having regard to the relevant leglisation, to subsection 14A.7(2) of the Fees and Payments Principles 2013 and to the Accommodation Pricing Guidelines. In particular we certify that the prices take into account the standard of accommodation and other facilities available and have been determined having due regard to the list of factors specified in subsection 14A.7(2) of the Fees and Payments Principles 2013 and the Accommodation Pricing Guidelines.
How can I get more information
Contact either David or Silvana in our Finance Department. We are happy to help with any queries you might have.