Under the new regulations commencing 30 July, there will be major changes for the funding of residents’ aged care accommodation payments.
Known as the New Aged Care Rule, the changes mean:
- For existing contracts, villages owners have to advance up to 85% of a resident’s estimated refundable ingoing contributions by way of a Refundable Accommodation Deposit (RAD) or Daily Accommodation Payments (DAP);
- For new contracts, village owners may have to advance up to 85% of a resident’s estimated refundable ingoing contribution by way of DAP only;
- If the village owner and resident can’t agree on the estimated contribution for the payment of a RAD, they must get an independent valuation.