Learn how the Basic Daily Fee works in Australian aged care, including fee reductions, transitional arrangements, and special considerations for different.
Key areas covered:
- What is included in the Basic Daily Fee structure?
- How does the fee reduction supplement affect the Basic Daily Fee?
- Are there different Basic Daily Fee arrangements for different residents?
What is included in the Basic Daily Fee structure?
The Basic Daily Fee is one of the primary fee components in aged care, alongside other charges such as the hotelling contribution and non-clinical care contribution. It can be reduced by the fee reduction supplement but cannot go below zero.
How does the fee reduction supplement affect the Basic Daily Fee?
The fee reduction supplement is calculated at 15% of the basic age pension amount (rounded down to the nearest cent) and can be applied daily or fortnightly. This supplement reduces the Basic Daily Fee first before affecting other contributions.
Are there different Basic Daily Fee arrangements for different residents?
Yes, there are different arrangements for pre-2014 and post-2014 residential contribution classes. Pre-2014 residents may be subject to an income tested fee, while post-2014 residents may have a means tested care fee. Special exemptions apply for those with dependent children or former prisoners of war.
