This can benefit people who:
- are not permitted to pay the full accommodation payment as a RAD due to the minimum permissible asset requirement
- Aged care facilities cannot accept a RAD that leaves the person with less than $48,50014
- For couples, 50% of the combined assets of the couple are measured against the $48,500 threshold. This assessment can result in the person wanting to pay a higher RAD, but being prevented from doing so as only half of the couple’s assets are included in the assessment.
- Where a person pays an additional RAD 28 days after entering aged care, the minimum permissible asset rule also does not apply
Things to be aware of:
- When determining the person assets, the market value of their former home is included
- If the person pays an additional RAD after 28 days from entering aged care, ensure they have sufficient funds to meet their expenses. If a member of a couple, consider whether the other member of the couple will require aged care funding
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Disclaimer and Warning
The information above is of a general nature only. It should not be used as a source to make financial decisions. It’s also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status. We recommend that if you are looking for advice on this matter, you should contact us.