Page 16 - Understanding Aged Care
P. 16
UNDERSTANDING AGED CARE
RENT HOME RENT HOME SELL HOME
Pay DAP Cash investment Pay RAD in full
* to pay RAD in full
Age pension $11,271 $14,110 $0
Interest $5,678 $0 $32,678
(at deeming rates)
Rent received
(net of expenses) $26,000 $26,000 $0
Total cashflow $42,949 $40,110 $32,678
Basic daily fee $19,239 $19,239 $19,239
Means-tested fee $10,336 $8,913 $28,339
DAP $12,120 5 $0 6 $0 6
Total fees (year) $41,695 $28,152 $47,578
Surplus cashflow $1,254 $11,958 -$14,900
The Case Study is illustrative only and is not an estimate of the investment returns you will receive or fees and costs you will incur.
*This Case Study is based on current rules and rates as at 1/7/2021.
1. Deeming on $300,000 financial assets
2. Deeming on home sales proceeds of $1.5 million (sales costs ignored)
3. Means tested fee capped at $28,338.71 per annum
4. Mark pays accommodation fully as DAP (ie $300,000 at 4.04%)
5. Mark pays for accommodation fully as a lump sum RAD of $300,000
6. Centrelink payment will cease after 2 years
16
