Are my Aged Care costs negotiable?

YES, you can negotiate a RAD (formerly Bond) with any facility but it will be up to the facility to accept your offer. RAD's are usually based on the location and the size of the room, views etc. Be careful with aged care facilities who request to see your assets assessment before you know the RAD or DAP amount. This is like showing a shop keeper how much you have in the bank before they determine the price of the article. You would not accept this from the shop keeper, so why would you accept these requirements from the the aged care facility!
 
Most daily fees are negotiable with the facility apart from the means tested care fee, which has a set formula and is determined by a person's income and assets after threshold are applied. 
 
Some facilities have a formula to determine the reduction in fees by the amount the resident plans to pay. You should have your own personal financial circumstances reviewed to ascertain if the fee negotiation will be of benefit to you. Generally if this is calculated to the optimum the overall benefits can save you thousands of dollars. 
 
 

 

 

Tax offsets available on Aged Care fees

 A tax offset is available for taxpayers who have net medical expenses over certain limits. As the costs for aged care can accumulate to a significant amount during the year and if the resident is also paying the means tested care fee, tax relief is available. This is particularly relevant for self funded retirees.

 
The tax offset can include a range aged care fees,but does not include the accommodation deposit. 
 
 
Disclaimer: The information above is for general use only. It is not intended for personal financial advice.