Currently Aged Care is predominately funded by the government in Australia. However, all residents are required to pay a contribution. This may be as little as 85% of their pension. However, all aged care residents undergo a means test (asset & income test) to determine their contribution. If the residents have the means to pay, they have the option of paying a RAD or DAP. The RAD is in effect an interest free loan to the facility, and is repayable to the estate of the resident or to the resident upon leaving the facility.

Upon entry to the aged care facility, the resident negotiates with the facility the amount of the RAD or DAP based upon their means to pay. They may choose to pay a RAD upfront as a lump sum or the DAP as monthly installments. They can choose to pay a combination of a RAD and a DAP depending on their circumstances.

The costs associated with entry into Aged Care are complex and may involve a means tested fee if the residents has entered care after the 1st July 2014. Care must be taken in managing the necessary finances, whilst ensuring the minimum possible effect on D.V.A. (Department of Veteran Affairs), Centrelink and other pension entitlements.

We offer specialist Aged Care Credit Advice, assisting with unique solutions designed to assist you pay for aged care costs.