Admission & Fees
- What is an Extra Service facility?
- Who is eligible for admission?
- How much does it cost?
- What other costs will I have?
- Can I transfer to the non-extra service wing?
- Accommodation Bond
- Weekly Fee
- More Information
- Financial Advice
What is an Extra Service facility?
An extra service facility is one that has been recognised by the Commonwealth Government as providing a significantly higher standard of accommodation and services than is normally available within a residential aged care facility.
In return for the higher costs involved in meeting the extra service requirements, the facility is entitled to require residents to pay an accommodation bond and an extra services fee. Our extra services fee for Windsor House is an additional $20.50 per day.
Who is eligible for admission?
You must be assessed by an Aged Care Assessment Service (ACAS) as needing accommodation in a high care facility. Admission is available to all persons regardless of background, religion or belief.
How much does it cost?
- You pay a weekly fee. The amount you pay depends on your income.
- You also pay an accommodation bond. The amount depends on your assets. The accommodation bond and weekly fee is discussed below.
What other costs will I have?
Some of the other costs you may encounter that are not included in your weekly fee include clothing and bed linen, personal chemist item, spending money for outings and STD, ISD and mobile phone call charges. Charges for personal chemist items and telephone call costs will appear on your monthly account.
Can I transfer to the non-extra service wing?
If you are a resident of Windsor House and wish to transfer to the non-extra service wing, we can put you on the waiting list. When you transfer, your extra services will cease and you will no longer be required to pay the extra service fee.
Accommodation Bond
How is the accommodation bond determined?
The Commonwealth Government closely regulates most aspects of the operation of accommodation bonds. They have determined that applicants will not pay an accommodation bond unless they have sufficient assets. Assets are such things as money in the bank, a house or unit, shares and investments. In certain situations such as when your spouse will remain at home, your house is not included in your assets. The amount of accommodation bond you are currently required to pay is outlined below:
- If your assets are below $39,001 you are not required to pay a bond.
- If your assets are between $39,001 and $189,000 you are required to pay a bond that is $39,000 less than the value of your assets.
- If your assets are between $189,001 and $300,000 you are required to pay a bond of $150,000.
- If your assets are between $300,001 and $370,000 you are required to pay a bond that is $150,000 less than the value of your assets.
- If your assets are above $370,001 you are required to pay a bond of $220,000.
Additional accommodation bond options for persons with assets above $370,000 are outlined below.
What if I only have limited assets?
Regrettably, it may affect our ability to admit you to Windsor House. Applicants unable to pay an accommodation bond of $150,000 or above may be offered alternative accommodation within Centennial Lodge instead.
Are there any advantages in paying an accommodation bond?
Yes. Amounts placed in accommodation bonds are not included as assets under the assets test and do not generate deemed income for the purposes of calculating entitlement to the aged pension. Accordingly, the payment of the bond has the effect of increasing pension entitlements for part-pensioners and of turning some non-pensioners into part-pensioners. It will also reduce the income tested fee (see below) if you are required to pay one.
Are there any options for paying a higher accommodation bond?
We are pleased to offer additional accommodation bond options for persons with higher levels of assets that will allow them to maximise their pension entitlements and minimise or eliminate their income tested fees. Each of these options offers a reduction in the retention component of the bond outlined in below and/or a reduction in the weekly charges also outlined below. Please contact the Windsor House Manager / Director of Nursing if you want information about our higher bond options or refer to the accompanying Accommodation Bond Options.
How do I arrange to get my assets assessed?
You will need to arrange for Centrelink or the Department of Veterans' Affairs to undertake the asset assessment. They will return the assessment to you. It is important that you forward this to us promptly when you are placed on our waiting list. If you agree to pay the maximum required bond of $220,000, or one of the higher bond options, there is no need to arrange for your assets to be assessed, you can simply advise us of the bond you wish to pay.
If you are already a resident in an aged care facility and have paid an accommodation bond, you are only required to transfer the balance of the bond you paid to enter your current facility.
What happens to the accommodation bond?
The bond is held in a secure and accessible form, which meets the Government's prudential guidelines. An amount is deducted from the bond each month you are a resident for a maximum period of five years unless you are discharged earlier.
For accommodation bonds above $36,900 we retain $3,690 each year. The retention amount for part of a month is determined on a pro rata basis unless you stay less than three months. The remaining portion of the accommodation bond, less a maximum possible retention of $18,450 is returned to you or your estate when you are no longer a resident in an aged care facility operated by Royal Freemasons.
If you opt to pay one of the higher bond options outlined above your retention amount will be either $1,752 per year or nil.
What if I don't want to pay an accommodation bond?
The bond may be paid as a single lump sum or by periodic payment or by part lump sum and part periodic payment. The periodic payment is an ongoing monthly payment based on the amount of the accommodation bond owing. Residents opting for part or full periodic payment may pay off the balance of the bond at any time as a lump sum.
This payment involves a retention component, outlined in above, and an interest component. The interest rate changes every three months and is currently 8.92% per annum. If you opt to pay at least part of your bond as a periodic payment you may rent out your home and neither the asset value of the home nor the rental income is currently considered when calculating your pension entitlement.
Examples
Mrs. Smith is required to pay a bond of $220,000. She decides to pay $120,000 as a lump sum and the balance by periodic payment. The retention component is nil as this will be deducted from the lump sum and the interest component is $100,000 @ 8.92% or $8,920 per year or $24.44 per day.
If Mrs. Smith decided not to pay a lump sum the retention component would be $3,690 per year or $10.11 per day and the interest component is $220,000 @ 8.92% or $19,624 per year or $53.76 per day. Her total periodic payment is $63.87 per day.
We recommend that you consult a financial advisor if you are considering the retention of your home and/or the periodic payment option.
When do I have to pay the accommodation bond?
You are allowed up to six months from your date of admission to pay your accommodation bond, however an interest charge of, currently, 8.92% will apply from your date of admission.
When is the accommodation bond refunded?
The bond balance must be refunded to the resident or their estate within two months of discharge or within seven days if the bond balance is to transfer to another aged care facility. The balance should be returned upon discharge to another facility providing seven days' notice of discharge has been received.
Weekly Fee
How is the weekly fee calculated?
The weekly fee comprises of two components. They are:
- A fee calculated by the Government on the basis of your income, and
- An Extra Service fee for the additional amenities and services provided
How does the Government calculate its component of the weekly fee?
The Government determines the weekly fee applicable for each level of income and individual circumstances.
If you are a pensioner or part-pensioner, we complete a form advising the Department of Health and Family Services of your admission and they then calculate your fee.
Non-pensioners are required to complete a Helping You with Your Residential Aged Care Fee form for submission to Centrelink to calculate your income. The Department of Health and Family Services will then advise us of your weekly fee. You are not required to disclose your income, however if you choose not to, you will pay the maximum weekly fee.
What is the current government determined fee?
- Most residents, including full pensioners and some part pensioners with lower amounts of private income pay the Standard Resident Contribution of $281.75 per week.
- Residents who enter permanent care from 20 September 2009, including part pensioners with private income amounts above the income threshold and self-funded retirees pay the Phased Resident Contribution of $268.31 per week.
- Residents who were in permanent care on 19 September 2009, including part pensioners with private income amounts above the income threshold and self-funded retirees pay the Protected Resident Contribution of $257.18 per week.
- For residents who entered care prior to 20 March 2008, including self-funded retirees, pensioners who have agreed to pay a big bond, or residents who have chosen not to disclose their financial information to Centrelink, pay the Non-Standard Resident Contribution of $320.32 per week.
Income tested fee:
- Full pensioners still only pay the base fee.
- Part pensioners and non-pensioners will pay the base fee plus an income tested fee if they have non-pension income above the $421.95 per week, although in some circumstances a slightly lower income threshold applies. The weekly amount of income tested fee is determined by subtracting the relevant income threshold amount from the total weekly income, multiplying the sum by 5 and dividing it by 12. The maximum income tested fee is $452.83 per week. *
*Please note:
- The base fee for residents who have previously lived in an aged care facility before 20 September 2009 can be affected by such considerations as the date of admission to their previous facility, the amount of accommodation bond they may have paid and their amount of non-pension income, if any.
- There are often delays in determining your base fee if you lived in an aged care facility prior to 20 September 2009. This may require an adjustment in your account when we receive this advice from the Department.
- There are often delays in Royal Freemasons receiving advice from the Department regarding your income tested fee. This may necessitate an adjustment in your account when we receive this advice from the Department.
- The income tested fee commences on the date of admission although for the first 28 days an interim fee applies.
- Residents are assessed as new residents by the Department if they have not lived in an aged care facility for more than 28 days.
How much more is the Extra Service fee?
In addition to the Government determined fee you are required to pay an extra service fee from your date of admission. The level of this fee and any future fee changes are regulated by the government. Our Extra Service fee is currently $143.50 per week.
How do I pay the weekly fee?
You or a representative you nominate will be sent an account on a monthly basis payable in advance. This will include both your Government determined fee and the Extra Service fee as well as charges for other services such as pharmacy items, dry cleaning etc.
How is the weekly fee adjusted?
The Government determined component of the weekly fee is normally adjusted twice yearly by the Department in line with pension increases. It can also be adjusted any time there is a change in Centrelink's assessment of your income.
Increases in the Extra Services component may occur annually and require prior approval from the Department. The maximum allowable increase is 20% plus CPI.
Is there a resident agreement?
There is a very detailed Extra Service Agreement, which outlines your rights and entitlements and all conditions of residency.
Can the fees be claimed as a medical expenses rebate?
Yes. If you pay income tax the Australian Taxation Office currently allows weekly fees, including the extra service fee component, accommodation bond deductions, accommodation charge payments and periodic payments to be claimed as a medical expenses rebate. You are advised to contact your accountant or financial adviser to determine the impact of this rebate in your case.
More Information
Commonwealth Government's Aged Care Hotline
1800 500 853
Centrelink
13 23 00
Department of Veterans' Affairs
(03) 9284 6000
Financial Advice
The advisors listed below are licensed financial planners who specialize in the provision of financial advice to prospective residents of aged care facilities.
Aged Care Financial Services
Level 4, 3 Bowen Crescent,
Melbourne 3004
1300 134 783
www.agedcarefinancialservices.com.au
Lifetime Planning Pty Ltd
700 High Street,
Kew East 3102
(03) 9859 3554
www.lifetimeplanning.com.au
