Estia Health has introduced a new daily fee, known as an asset replacement contribution fee. It was introduced on June 6 and adds up to an extra $6500 per year for residents who pay for their accommodation upfront. Those who pay through a DAP will not be affected.
Combined with the basic daily care fee, the fee is more than the full age pension, meaning the difference will have to be made up by deducting money from residents RADs. Generally a RAD is repaid to residents in full if they pass away or move to another aged care home.
Aegis Aged Care brought in a similar $13.70 asset replacement contribution fee in April that is determined by what proportion of the accommodation fee the residents pays through their RAD and capped at 2.5 years. Japara Healthcare also has a $10 capped capital refurbishment fee that it introduced last year.
The National Aged Care Alliance has already voiced concerns about the new fees with the Department of Health with Council of the Ageing (COTA) chief executive Ian Yates saying the charges should be made public.
We are arguing to the government they should be very clear to the industry that this forms part of the accommodation charge and is legally required to be disclosed and published, he said.
The move follows the Governments $1.2 billion ACFI funding cuts across the next four years.
