Combined DAP/RAD

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Combined DAP/RAD

IF we do a combined RAD & DAP does that reduce the lifetime payment amount of approx 62K ($21,000 per year) that would be paid if no RAD was paid.  ie a RAD of 349,000 with a deposit of 200000 was made which reduced the daily fee to approx $23 ($8500 per year).  Would the lifetime payment still be 62K or would that reduce commensurately.  

Jill_Donaldson

Hi bergy,

Rob Craven our expert adviser from Affinity Aged Care Financial Services  has responded to your question as follows:

If no lump sum was paid, with a RAD of $349,000, the DAP would be $55.08 per day and this amount would need to be paid for the duration of the resident’s stay in care.  This fee is not capped.

 

If a lump sum of $200,000 was subsequently paid, the DAP would reduce to $23.51 per day. 

 

 

The indexed lifetime cap (currently $62,498.66) only applies to the means tested care fee. 

Neither the basic daily care fees nor the daily accommodation payments are included in the lifetime cap.

I hope that helps

Regards

Jill

 

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