How is the means tested fee calculated?

How is the means tested fee calculated?

The income-tested care fee is calculated at the rate of 50 per cent of income above the income free area (IFA) applicable to the person.

What is the difference between a RAD and a RAC?

Refundable accommodation contribution (RAC): This is when the government helps with the costs. Refundable accommodation deposit (RAD): This is when you pay the full amount yourself.

Is the RAD means tested?

Means testing of the RAD and DAP The social security and aged care means tests do not assess regular payments of the DAP by a relative. The value of the RAD paid is an exempt asset for social security purposes. So, paying for a RAD with the person’s own funds may help them receive more in Age Pension.

Can you negotiate aged care fees?

Your price negotiations Aged care homes are required to publish their maximum accommodation costs for their various rooms on this website. You and your provider can negotiate and agree to a lower price. However, you cannot be charged more than the published price for that room.

How much money can I have before my pension is affected?

Assets Test A single homeowner can have up to $588,250 of assessable assets and receive a part pension – for a single non-homeowner the lower threshold is $804,750. For a couple, the higher threshold to $884,000 for a homeowner and $1,100,500 for a non-homeowner.

Are you a homeowner if you pay a rad?

If you sell your home, you will become a non-homeowner but the amount you pay to the facility as a refundable accommodation deposit (RAD) is exempt for Services Australia and Veterans’ Affairs, and may help to maximise your age pension.

Can you negotiate a rad?

YES, you can negotiate a RAD (formerly Bond) with any facility but it will be up to the facility to accept your offer. RAD’s are usually based on the location and the size of the room, views etc. Be careful with aged care facilities who request to see your assets assessment before you know the RAD or DAP amount.