| Basic Daily Care Fee (Standard Resident Contribution) | $63.57 |
| Income Free Area - Residential Care | |
| Single person | $33,735 |
| Couple, illness separated (single rate) | $33,059 |
| Residential Care Means Test | |
| Asset Free Threshold | $61,500 |
| First Asset Threshold | $206,039 |
| Second Asset Threshold | $495,117 |
| Family Home Exemption Cap | $206,039 |
| Cap on Means Tested Care Fee Payments | |
| Annual Cap | $34,174 |
| Lifetime Cap | $82,018 |
| Maximum Permissible Interest Rate - from 1/01/25 | 8.42% |
| Minimum Permissible Asset Level - the minimum amount of assets a resident must be left with if they pay at least part of their accommodation costs by Refundable Accommodation Deposit (RAD) | $61,500 |
| Maximum Refundable Accommodation Deposit - the maximum amount that can be charged for a room without prior approval from the Aged Care Pricing Commission | $750,000 |
The Maximum Permissible Interest Rate (MPIR) increased to 8.42% effective from January 1st 2025.
As facilities proceed to increase RAD’s, the lesser profitability of a concessional resident will result in a clear preference for RAD paying residents.
The effective Refundable Accommodation Contribution (RAC) on a refurbished aged care home, above the 40% concessional ratio, will be $302,671 from 1st January 2025, which will put pressure on those looking to find a concessional placement given average RAD’s are now much higher than this amount.
More about RAD, DAP & MPIR ...