Costs and Payment Options
At HammondCare, we provide the highest possible quality of care to all people with an assessed need, regardless of their financial circumstances.
This means that your financial situation will not affect finding a place at HammondCare.
There are a number of pricing options available for residents. These can be complicated, but we’ve tried to make them as clear as possible. If you’re not sure what the best option for you is, or if you would like to talk to someone about your financial situation, please don’t hesitate to get in touch.
What does it cost to live at HammondCare Caulfield?
Residential aged care costs fall under two main categories:
1. Accommodation costs
From 1 July 2014, residents have three options for paying for the costs of their accommodation:
Option 1: Refundable Accommodation Deposit (RAD). This is a lump sum payment.
The Maximum RADs for the various accommodation groups in HammondCare Caulfield are:
- Caulfield care home (single room with private bathroom): $500,000
- Caulfield care home (single room with shared bathroom): $440,000
- Caulfield care home (shared rooms): $400,000
- Montgomery care home (single accommodation): $350,000
- Namarra care home (single accommodation): $340,000
Option 2: Daily Accommodation Payment (DAP). The Maximum DAPs for the various accommodation groups in HammondCare Caulfield are:
- Caulfield care home (single room with private bathroom): $78.08
- Caulfield care home (single room with shared bathroom): $68.71
- Caulfield care home (shared rooms): $54.65
- Montgomery care home (single accommodation): $54.65
- Namarra care homes (single accommodation): $53.09
Option 3: RAD + DAP Combined. This is a combination payment that is made up of part refundable accommodation deposit, and part daily accommodation payment.
You are able to pay any RAD + DAP combination you wish. Some examples of RAD + DAP combinations for HammondCare Caulfield are:
- Caulfield care home (single room with private bathroom): A RAD of $325,000 and a DAP of $27.32
- Caulfield care home (single room with shared bathroom): A RAD of $285,000 and a DAP of $24.20
- Caulfield care home (shared rooms): A RAD of $227,500 and a DAP of $19.13
- Montgomery care home (single accommodation): A RAD of $227,500 and a DAP of $19.13
- Namarra care home (single accommodation): A RAD of $220,000 and a DAP of $18.73
In this case you can deduct the daily payment (DAP) from the lump sum payment (RAD).
Residents who choose to pay for their accommodation by a RAD (or a RAD/ DAP combination), may also determine to have any DAP or by agreement with HammondCare any means tested fee amount withdrawn from the RAD. Residents or representatives may have concerns that the RAD amount will over time be consumed by these deductions.
HammondCare will ensure that at least 70% of the RAD paid will be returned for residents who:
- Have a Centrelink assessment indicating that the RAD they have paid is the maximum that they are able to pay.
- Have paid a RAD that is equal to or higher than the HammondCare example RAD/DAP combination for their home (as shown on the HammondCare website or printed material).
Those who do not agree to have any regular deductions taken from the RAD they pay will receive the full deposit on departure.
The Australian Government also pays an accommodation supplement for residents who are unable to contribute to the cost of their accommodation. So in this way anyone, no matter what their financial circumstance, can access the care we offer.
2. Care costs
The Commonwealth Government subsidises the cost of care. Residents are asked to contribute in the following two ways:
Basic daily care fee
All residents pay a Basic Daily Care Fee which goes towards care needs and living expenses such as meals, cleaning and laundry. The standard Basic Daily Care Fee is 85% of the single pension, or $49.42 per day.
Means-tested care fee
In addition, residents whose income and assets exceed thresholds set by the Australian Government
will also be asked to pay a means-tested care fee which contributes to the cost of their clinical care.
So what will the total cost be?
Your specific care costs will depend on a number of factors, including your particular circumstances and care needs. If you would like to discuss these further, please contact our Client Services Officer on 1800 776 112.
To make things clearer, here are some examples of how accommodation and care costs might interact in individual cases. Please also have a read of our frequently asked questions.
Mary is a full pensioner who was renting a house in Liverpool. When she was assessed as eligible for residential care, she moved into The Meadows – a low care, dementia-specific home at HammondCare’s Hammondville campus in South West Sydney. Because she did not have significant income or assets, Mary receives the government’s accommodation supplement and she does not have to pay the means tested care fee. She will use her pension income to pay the basic daily care fee.
Bill is a retired welder who lives on the Central Coast of NSW. When he discovered he needed residential care, he sold his house for $400,000 and moved into HammondCare Erina. The home's maximum accommodation price is $550,000 and he chose to pay a combined $360,000 refundable deposit and a $29.82 daily accommodation payment (based on the outstanding amount of $190,000). He also pays a means tested care fee of around $10/day out of the remaining $40,000 from the sale of his former home. He also pays the basic daily care fee out of his pension.
Jane is a retired accountant from Sydney's Sutherland Shire. Before she moved into a 15-person cottage at HammondCare, Miranda she lived in a house near the beach that was worth $800,000. She paid the full refundable deposit of $758,000 and so did not have to make any daily accommodation payments. She now pays a means tested care fee based on her assets and her investment income. She also pays the basic daily care fee out of her investment income.
Frequently Asked Questions
Once I’ve move into an aged care home, will the accommodation costs change?
No. The accommodation price that you agree to before moving into an aged care home will remain fixed and there are three options for making this payment – a refundable deposit, an equivalent daily payment or a combination of the two.
Once you move into one of our aged care homes, you have up to 28 days to decide which payment option you wish to make. If you choose to pay a refundable accommodation deposit, you have up to six months after you move in to make that payment.
If you wish to make a combined refundable deposit and daily payment, you have the option of deducting the daily payment from the deposit. When you make this choice, the overall amount of your accommodation payment will not change but the amount of your daily payment will increase as your refundable deposit reduces.
How does the means tested care fee work?
If your income is higher than the basic full pension rate and/or your combined assets are above a set threshold, you will be asked to contribute to the cost of your care.
No one will be asked to pay more than $26,567 in one year or more than $63,760 over their lifetime.
How does this fee relate to my accommodation payments?
The way you choose to pay for your accommodation will impact how you contribute to the cost of your care. For example:
- If you wish, you can deduct your Means Tested Care Fee from a refundable accommodation deposit.
- If you decide to pay a refundable deposit, this amount will be included in the assessment of your assets, which is used to determine your means tested care fee.
- If you choose to rent out your former home and use rental income to pay a daily accommodation payment, the value of your former home will be capped at $162,815 for the purposes of determining your means tested care fee.
To discuss the options that are available to you, feel free to call our Client Services Officer on 1800 776 112.
Is there help for people who are financially disadvantaged?
Yes. No matter what your financial circumstances are, HammondCare has a place for anyone who needs care. And if you are unable to contribute towards your accommodation costs, the Government will pay an accommodation supplement on your behalf.
How do I know if I am eligible for the government’s accommodation supplement?
To see if you are able to receive the accommodation, you can complete an income and assets test through Centrelink or the Department of Veterans Affairs.
What about existing residents?
Residents who entered an aged care home before 1 July 2014 will have no changes in the way they contribute towards for their care and accommodation, unless their needs change and they enter a new residential agreement after this date.
What happens to my refundable deposit if I move out of an aged care home?
If you have paid a refundable accommodation deposit on entering an aged care home, it will be returned to you when you leave the home. If you have deducted daily accommodation payments or other payments, such as the means-tested care fee, the balance of your refundable deposit will be returned to you.