Residential Care Decisions
Knowing when it's time, choosing the right facility and understanding RADs and DAP fees without the guilt.
"I promised I'd never put them in a home."
This is the heaviest decision you will make, and the guilt can be overwhelming. But remember: keeping them safe and ensuring they get 24/7 care is an act of love, not abandonment. You are stepping out of the role of full-time carer and back into the role of a daughter.
The financial side (RADs, DAPs, Means Tested Care Fees) is notoriously complex. Take a deep breath. You don't need to understand it all today, but you do need to take these first steps.
Your Immediate Next Steps:
- Verify SAS Approval: You cannot enter a subsidised aged care home without the SAS - Single Assessment Process approving them for residential care.
- Complete the Income & Assets Assessment: Submit this to Services Australia (Centrelink) to determine what fees you'll need to pay.
- Start Touring Facilities: Don't just look at the chandeliers in the lobby. Speak to the nurses, check the weekend staffing ratios and observe the residents.
Understanding the Costs
I know the financial side of aged care looks like alphabet soup at first. It's one of the most overwhelming parts of the journey, but once you break down the acronyms, it becomes much easier to understand.
We highly recommend speaking with a specialist Aged Care Financial Planner to help you make informed financial decisions for your family's specific situation. But to help you start, here is a simple breakdown of the main costs you might encounter:
1. The Basic Daily Fee
This is a standard fee that all residents pay. It is set at 85% of the single basic Age Pension and is updated twice a year. This fee covers everyday living expenses — things like meals, cleaning, laundry and general care. For some people with no other assets, this might be the only fee you need to pay.
2. Accommodation Costs (RADs and DAPs)
This is the payment for the actual room and accommodation. If your assessed assets are below the government threshold (currently around $238,000), the government may subsidise part or all of this cost. If you have no assets at all, there is a safety net in place to support you.
If you are required to pay for your accommodation, you have a few ways to do it:
- Refundable Accommodation Deposit (RAD): A lump-sum payment made when entering care. It is fully guaranteed by the Australian Government. When your parent leaves the home or passes away, the balance is refunded to them or their estate. Note: If agreed in your resident agreement, the provider may retain up to 2% of the RAD each year for a maximum of five years (meaning up to 10% may be deducted before the refund).
- Daily Accommodation Payment (DAP): A non-refundable daily rate, similar to paying rent.
- A Combination (RAD + DAP): You can choose to pay part of the cost as a lump sum (RAD) and the rest as a daily payment (DAP). You can even ask the provider to deduct the DAP or other care expenses directly from the RAD you've already paid.
3. Care Contribution
This is an extra contribution towards the cost of care that you may need to pay on top of the basic daily fee. It covers non-clinical care services like bathing, mobility support and lifestyle activities. This contribution is means-tested and is capped at both a daily rate and a lifetime limit.
4. Additional Service Fees
These are completely optional payments for enhanced amenities or lifestyle offerings that go beyond standard government-subsidised care. Think of things like in-house theatre movies, barista-style coffee, a wider menu choice, or streaming services.
Frequently Asked Questions
The Essential Aged Care Nursing Home Tour Q&A
It’s easy for everything to look reassuring during a tour. This checklist helps you know what to look out for, what questions to ask and how to feel more confident in the decision you’re making when moving into permanent residential aged care.
- 50+ critical questions to ask
- Red flags to watch out for
- Comparison matrix for 3 facilities
Aged Care Costs Explained: RADs, DAPs & Centrelink
A simple and plain-English guide to help you understand what RADs and DAPs actually mean, how aged care costs are structured and what Centrelink needs to know so you can feel more confident understanding it.
Suggested Reading
More advice and guidance for this stage of the journey.
The Ultimate Gift Guide: What to Buy When Your Aging Parent Moves to Residential Care
Moving into aged care is a massive transition. Here is a comprehensive, thoughtful guide to the most practical and comforting gifts to help their new room feel like home.
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Preparing for the SAS Assessment: A Guide for Australian Families
The acronyms alone are enough to make your head spin. Here is a plain-English breakdown of what the new SAS (Single Assessment System) is, how to prepare, and what to expect on the day.
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Signs Your Aging Parent May Not Be Coping As Well As You Think
It's rarely one big event. Usually, it's a slow collection of small changes. Here are the subtle signs that your parent might need more support than you can provide.
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