St Hedwig Village is subsided by the Australia Government. However, residents are also asked to pay fees and charges as a contribution towards accommodation costs, living expenses and the cost of their care.

The Australian Government determinates the fees and charges payable. These are linked to your date of entry, your income and assets, whether or not you are a pensioner, and your level of care. There are protections in place to ensure that care is affordable for all residents.

When becoming a resident of St Hedwig Village, residents or their representative, will be asked if they have a letter from Centrelink regarding their financial status.

All residents and / or their representative will be asked to enter into a formal Resident Agreement. The agreement is required by the Australian Government to set out the terms and conditions that apply to both St Hedwig Village and the resident.

The agreement will be fully explained to you, during the admission process. It is strongly advisable that you seek independent or legal advice prior to signing the agreement.

What are the fees?

Note: Changes to fees apply to people entering aged care from 1st July 2014. If you are already in an aged care facility, or receiving a home care package, they will continue under current agreements.

Home Care Packages:

People receiving a home care package can be asked to pay:

  • A basic fee – which all consumers receiving a home care package can be asked to pay.
  • An income tested care fee – an extra contribution towards the cost of care that consumers may need to pay, depending on assessable income.

Residential Care:

A resident may be charged for the care and services provided, as follows:

Basic Fee

All residents in aged care, including respite residents, can be asked to pay a basic daily fee as a contribution towards accommodation costs and living expenses, like meals, cleaning, laundry, heating and cooling. The maximum basic daily fee for all residents is set by the Australian Government.

Means tested care fee

Residents (other than respite residents) may be asked to pay a means tested care fee, depending on their income and assets. No resident will pay more than they can afford, and no resident will pay more than the cost of their care. Annual and lifetime caps apply to this fee.

Accommodation Payment

From 1st July 2014, people who move into an aged care facility for the first time will hear some terms about the way accommodation costs can be paid.

1. Refundable Accommodation Deposit (RAD)
A lump sum payment for accommodation in an aged care facility. This is the price of a room, in lump sum form, that residents have agreed with their aged care facility to pay. Residents can pay their accommodation price in full by RAD or they can pay via a combination of a smaller RAD and a Daily Accommodation Payment (DAP) or they can pay in full by DAP.

2. Daily Accommodation Payment (DAP)
The daily payment for accommodation in an aged care facility. The facility will work out the DAP based on a legislated formula that converts the RAD price to a DAP price. The resident makes this payment on a regular basis, up to a month in advance, similar to paying rent.
The DAP is not refunded when the resident leaves the facility or decides to pay a RAD. The resident can choose to pay a combination of a RAD and a DAP for their accommodation costs.

Additional Service Fee

Charges incurred for medications, dental, hairdressing, podiatrist (only in lower care), books, personal preferences, special toiletries, etc, and any other services that are not included in the above fees are payable by the residents as “extra”. They will be identified separately in the account statements when issued.

Payment

For all permanent residents, direct debit for payment of accounts is available and is the preferred option. A consent form is included in the Resident’s Information Pack.

In all instances, prompt payment of accounts is expected. Interest may be charged for amounts outstanding for more than 42 days and the interest rate is set by the Department of Social Services.

It should be understood that St Hedwig Village reserves the right to ask any resident who has not paid their monthly fees or other accounts within a reasonable time to find alternative accommodation.

Further Information

The Australian Government’s My Aged Care website provides information about aged care and aged care services. It includes information about fee arrangements for aged care. You can receive further information and an estimate of fees by calling 1800 200 422.

We recommend you seek advice from a financial planner to understand your financial agreements when looking to be placed in residential care.