Glossary – Understanding Aged Care

(Effective as at 20th March, 2017)


Age Care Assessment Team. In Victoria this is known as ACAS (Age Care Assessment Service). They assess for eligibility of entry into government subsidised aged care homes (permanent or respite) or eligibility for government subsidised home care and other services.


My Support Plan (ACCR old system)

My Support Plan or ACCR (Aged Care Client Record) are essentially the same thing. This is the report that you receive from My Aged Care, which describes your current care needs and includes your approval level of eligibility for government subsidised aged care services at home and residential care.


Basic Daily Care Fee (Residential Aged Care)

This is the minimum daily payment for all residents in government funded residential aged care facilities. It is 85% of the current aged care pension for a single person. This amount is adjusted twice per year indexed to the aged care pension.


RAD – Refundable Accommodation Deposit (Bond)

This is a lump sum payment made to the government funded aged care facility on entry into permanent residential aged care. It is essentially an interest free loan to the facility.

This fee is set by the facility, at their discretion, up to a maximum of $550,000.

For a facility to charge a RAD greater than $550,000 they must first seek pre-approval from the Aged Care Pricing Commission. Prices must be approved and published before being applied to incoming residents.


DAP – Daily Accommodation Payment (Periodic payment)

This is a daily payment made to a residential aged care facility instead of a RAD.

This fee is calculated based on the MPIR (maximum permissible interest rate) set by the government, current at the time of entry to the facility. This rate is adjusted twice per year.

(RAD x MPIR) / 365 = DAP


Care Contribution Fee (Income tested fee)

This is the means tested portion of the fees paid by residents in government funded residential aged care. This fee can also apply to recipients of government funded aged care services at home.

This fee is calculated by Centrelink after completing either the Income Assessment if receiving Home Care or the Combined Assets and Income Assessment for resident who choose to move into permanent residential aged care.

Annual Cap
Home Care services – $10,552
Residential Aged Care – $26,381

Lifetime Cap – $63,313 (total for home care and residential care)


Supported or partially supported resident (Concessional Resident)

A Centrelink assessment will determine the status of a fully supported resident for permanent residential aged care. The calculation is based on both income and assets.

Fully Supported Resident = Income less than $26,073 (single) AND Assets less than $47,500


RAC – Residential Accommodation Charge

This is a lump sum accommodation charge that may apply to partially supported residents.


DAC – Daily Accommodation Charge

Daily accommodation charge calculated from the RAC for partially supported residents.


Extra Service fees

Extra Service Fees vary from facility to facility as do the services offered. The details of these fees should be clarified and confirmed prior to moving into care.

These fees are set by the provider, and agreed to by the resident, prior to entering care. They are charged on a daily basis and cannot be changed after the resident agreement has been signed unless agreed to by both parties.


Additional Services

These are the fees for any additional services that the resident may use while they are in residential aged care. The resident has the right to opt in and out of these additional services based on the terms of the residential agreement.

Additional services may now be offered by all facilities.


Capital Refurbishment Fee (may be called several other names)

This fee is for the maintenance of the facility and the refurbishment of the room required when a resident leaves a facility.   This fee is calculated daily and can usually be deducted from the RAD when a resident leaves the facility.