Guide to Fees and Charges
How much you could be asked to pay towards your accommodation costs will depend on your financial situation. You may be asked to pay only part of or no accommodation costs.
The Australian Government will conduct an assessment of your income and assets. They will then advise you and Homewood Care if you can be asked to pay towards your accommodation costs, and if so how much.
If you are required to pay for your accommodation, you have greater choice in how you pay. You can use a:
- lump-sum payment, called a ‘refundable accommodation deposit’
- regular rental-type payment called a ‘daily accommodation payment’, or
- a combination of both.
If you are required to pay an accommodation payment, you will have 28 days from the day you entered care to decide on your payment method.
Until you decide on your ongoing payment method, you will need to pay your accommodation costs by rental-type ‘daily accommodation payment’ until you decide on your ongoing payment method.
Refundable accommodation deposit
If you choose to make your payment as a lump sum, this is called a ‘refundable accommodation deposit’. A refundable accommodation deposit works like an interest-free loan to Homewood Care. The balance of the deposit is refunded when you leave the home less any amounts you have agreed to have deducted.
Daily accommodation payment
Instead of paying for your accommodation as a lump sum you can choose to pay as periodic payments. The amount you pay is based on a daily rate which is why this type of payment is called a daily accommodation payment. However, you will pay in instalments up to a month in advance. Daily accommodation payments, unless you have paid in advance, are not refundable if you leave the aged care home.
Using a combination
You can choose to pay for your accommodation as a part lump-sum refundable accommodation deposit and part rental-type payment known as ‘daily accommodation payments’.
The payment method which is most suitable for you will depend on your personal and financial situation. You may want to consult with a financial adviser before you make a decision. There are various government services and resources that can help you obtain appropriate financial advice. It’s a good idea to do some research to see what options work best for you.
For example, choosing a particular payment method may affect your pension, if you receive one.
Drawing down your refundable accommodation deposit
If you choose a combination approach, there is the option to have your rental-type daily accommodation payment taken out of your lump-sum refundable accommodation deposit.
This will mean that the total amount in your refundable accommodation deposit will be reduced over time as your daily accommodation payment is deducted.
As your refundable accommodation deposit is reduced, your provider may ask you to top up your refundable accommodation deposit or pay a higher daily accommodation payment.
If you would like to discuss the fees in detail please book a visit with the CEO. All residents are encouraged to seek independent financial advice before entering into an agreement. Centrelink provide a free service to advise on Residential Care fees.
Department of Health – Residential Care Fees and Charges
To obtain an updated list of Residential Care Fees and Charges please visit the Department of Health website.