Fees and Charges

We know that understanding the fees and charges applicable to entry into residential aged care can be daunting for first time users. If you would like to make an appointment to discuss these with us, please call our Administration team on (03) 5267 1200, available Monday to Friday from 9am to 5pm.

Fees payable following entry into Hesse Rural Health’s aged care service are set as per guidelines from the Commonwealth Department of Health. There are three types of residential aged care fees. One or more may apply, depending on wealth. Capacity to contribute towards these fees is determined by the Department of Human Services through completion of an ‘Assets and Income Assessment’.

A short summary of aged care fees and charges is provided below.

(1) The Basic Daily Care Fee
This standard fee, payable by all residents, represents 85% of the single rate of the aged pension, and increases incrementally in March and September each year. The current standard fee is $58.98 per day.

(2) Means Tested Fee
This fee is determined by the Department of Human Services following the completion by the resident of an Assets and Income Assessment. This represents an additional contribution towards the cost of care, payable by residents with assets and annual income above thresholds set by the Commonwealth. If payable, the fee is subject to an annual and a lifetime cap.

(3) Accommodation Payment
If your assets and income are low, the Commonwealth may subsidise some or all of this fee. However, if it is determined that you have the means to cover your accommodation costs, there is a flexible range of payment options available. Hesse has an accommodation room price that is set on a sliding scale, up to a maximum of $495,000. This is a maximum only, and the room price that is offered will be dependent on a person’s means. Nine of our 56 aged care rooms do not have ensuites, and are priced separately at $300,000.

Option 1: Refundable Accommodation Deposit
A Refundable Accommodation Deposit is a lump sum amount equal to the agreed room price (for example, $495,000). This has the nature of an ‘interest free loan’ to the health service. If you choose to leave, or in the eventuality of the Estate, it is refunded in full.

Option 2: Daily Accommodation Payment
A Daily Accommodation Payment is a daily charge calculated from the agreed room price using the interest rate advised by the Commonwealth. The daily charge is set on a sliding scale up to a maximum of $65.49 per day.

Option 3: Combination of Option 1 and Option 2
A combination of a lump sum Refundable Accommodation Deposit and a Daily Accommodation Payment may be arranged. A partial lump sum payment reduces the daily accommodation fee payable. You may also request that this daily fee be deducted from the lump sum that is held by the Health Service.