Payment Options

It's important to understand the fees and charges that are applicable when accessing aged care. There are a number of factors which influence the amount of money a resident pays to live in aged care and a specialist financial advisor might be the best place to offer this advice.

From the 1st July 2014, people moving into aged care can be asked to pay a basic fee, a means tested care fee based on assets and income and an accommodation payment.

Fees and Charges as from the 20th September 2018
  • A BASIC FEE is paid by all people who receive residential care, currently $50.66. This rate may vary on review by the Australian Government.
  • A MEANS TESTED CARE FEE is an extra contribution toward the cost of care that residents may need to pay on top of the basic fee depending on income and assets. Annual and lifetime caps have been set to limit how much a person will need to pay in means tested care fees. The annual cap is $27,232.33. The lifetime cap is $65,357.65.
  • An ACCOMMODATION PAYMENT is a payment for accommodation in an aged care home. Some people will have their accommodation payments paid in full or in part by the Australian Government and others will need to pay the accommodation price they negotiate with Murray House.

Types of Fees Chargeable by Income and Assets Levels
  • Assessable assets of $49,000.00 or less and an income of less than $26,985.40. Resident pays the basic fee only.
  • Assessable assets of between $49,000.00 and $166,707.20 and an income between $26,985.40 and $52,036.40. Resident pays the basic fee plus an accommodation contribution.
  • Assessable assets greater than $166,707.20.  Resident pays the basic daily fee, an accommodation payment and a means tested care fee.
The maximum price Murray House charges at present for permanent care is $300,000.00 and can be paid either as a RAD, a DAP or combination of either. The resident has up to 28 days after admission to decide the method of payment and until that decision is made, payment will be a DAP. The RAD is fully repaid when the resident vacates Murray House. The DAP is calculated at 5.96%, the current maximum permissible interest rate (MPIR) on the balance of the accommodation deposit after the amount of the RAD is determined and paid. Arrangements can be made to pay the DAP from the RAD but the DAP will be recalculated monthly to compensate Murray House for loss of interest revenue on the RAD.

Pricing Example 1

Resident Assessable Assets $350,000.00
Required Minimum Assets to be Retained $49,000.00
Assets Available for RAD $301,000.00
Maximum Accommodation Price $300,000.00

a) The resident chooses to pay a RAD equal to the maximum price.
    ⎯ The full amount of the RAD paid is refunded to the resident or estate on departure.

b) The resident chooses to pay the whole accommodation price as a DAP
     ⎯ DAP payable is $48.98 per day.
       Accommodation Price x MPIR / 365 = ($300,000.00 x 5.96% / 365)

c) The resident chooses to pay the accommodation price by 50% RAD and 50% DAP.
    ⎯ RAD paid $150,000.00
    - DAP therefore is $24.49 [($300,000.00 - $150,000.00) x 5.96% / 365]

If the DAP is paid from the RAD this would reduce the RAD by $24.49 per day and the DAP would be recalculated monthly.

Pricing Example 2

Resident Assessable Assets $200,000.00
Required Minimum Assets to be Retained $49,000.00
Assets Available for RAD $151,000.00
Maximum Accommodation Price $300,000.00


a) The resident chooses to pay a RAD equal to their maximum available asset level of $151,000.00.
    ⎯ The balance of the accommodation price is calculated as a DAP of $24.32 per day         [($300,000.00 - $151,000.00) x 5.96% / 365]

b) The resident chooses to pay the whole accommodation price by DAP.
     ⎯ The DAP payable is $48.98 per day ($300,000.00 x 5.96% / 365)

c) The resident chooses to pay the accommodation price by 40% RAD and 60% DAP.
    ⎯ The RAD is $120,000.00.
    ⎯ The DAP payable is $29.39 per day [($300,000.00 - $120,000.00) x 5.96% / 365]

If in examples a) and b) the DAP is paid from the RAD thereby reducing the RAD held by Murray House, the DAP will be recalculated monthly.

Regardless of your financial situation you and your family are encouraged to seek financial advice concerning your entry into Murray House and there are companies locally who specialise in Aged Care services should you wish to use them.
Telephone: (03) 5027 3384
31-37 Murray Street, Wentworth NSW