There are different ways you can pay for your accommodation. When you enter your aged care home, you have up to 4 weeks to choose the alternative you prefer.
The choices are:
The amount you pay is as negotiated and agreed with your aged care home.
Your payment is refunded when you leave the aged care home, less any amounts agreed during the original price negotiations.
The full lump sum cost of your accomodation is converted to an equivalent daily cost, according to a government legislated formula. Your monthly accommodation payment is a summation of the daily costs.
This payment is not refunded when you leave the aged care home. It can be considered as rent.
This alternative allows for just part of the full lump sum cost of your accomodation to be paid up front. The proportion not paid up front then becomes the basis for determining your pay as you go amount.
The partial lump sum payment is refunded when you leave the aged care home, less any amounts agreed during the original price negotiations. The pay as you go payments are not refunded when you leave the aged care home.
If you pay all your accommodation payment up front, this is called a Refundable Accommodation Deposit or RAD. It's called a Refundable Accommodation Contribution or RAC, if you are responsible for paying part of your accommodation costs and the government is paying the remainder.
If you pay your accommodation payment as you go, this is called a Daily Accommodation Payment or DAP, if you are responsible for all your accommodation costs. It's called a Daily Accommodation Contribution or DAC, if you are responsible for paying part of your accommodation costs and the government is paying the remainder.