From 1st July 2014 all aged care providers are required to provide prospective residents and their representatives with information regarding the type and standard of accommodation available and the maximum costs associated with that accommodation.
Accommodation Costs
If your assets are more than the threshold amount set by the Australian Government, you will be required to make an accommodation payment. This payment will go towards your aged care home accommodation.
Before you sign your Resident Agreement, we will agree to the amount of the accommodation payment with you. You will have 28 days to decide the method of your payment which will be either:
a) A Refundable Accommodation Deposit (RAD), or
b) A Daily Accommodation Payment (DAP), or
c) A combination of the two
Please note the DAP is the default payment method.
If you are seeking government assistance with aged care accommodation costs, you must undergo an income and assets assessment by the Department of Human Services or the Department of Veterans' Affairs.
If your assets are less than the lower cut-off level, you won't need to make an accommodation payment. Cut off levels are determined by the Department of Human Services.
The maximum price for all resident rooms at Emmerton Park is $350,000 and we provide examples of each payment method below:
Example 1 RAD by Lump Sum Only
Maximum Price = $350,000
The Refundable Accommodation Deposit (RAD) is 100% refundable upon departure from Emmerton Park. Retentions from the RAD do not apply after 1st July 2014. You may request, in writing, for other fees and charges, to be deducted from your RAD (conditions apply).
Example 2 (DAP)
DAP = Daily Accommodation Payment (periodic payment which effectively replaces the Daily Accommodation Charge). DAP is calculated as follows:
RAD x Maximum Permissible Interest Rate (MPIR)/365.
RAD = $350,000 equates to $38.45 per day.
Example 3 Combination of RAD and DAP
RAD 50% = $175,000
DAP 50% = $19.22
DAP calculated by Maximum RAD less RAD Paid by Lump Sum x MPIR/365
MPIR
The Maximum Bond Interest Rate (formerly the Treasury Note Yield) is the maximum interest rate chargeable on unpaid RAD and overdue fees under a resident agreement. The rate is set by Australian Treasury each quarter.
The above examples have used a MPIR of 4.01%.
SELF ASSESSMENT CERTIFICATION
I certify that the prices published have been determined having regard to the relevant legislation and Pricing Guidelines. In particular, I certify that the prices take into account the standard of accommodation and other facilities available and have been determined having due regard to the
list of factors specified in the Pricing Guidelines.
Chief Executive Officer.