Exceptional circumstances
Australia’s aged care system is not designed to support younger people. If you are aged under 65 years, you should only live in residential aged care in exceptional circumstances, such as if you are either:
- an Aboriginal and Torres Strait Islander person aged 50 to 64 years or over
- aged 50 to 64 years and homeless or at risk of homelessness.
In all other circumstances you must explore age-appropriate accommodation and supports first to be eligible for residential aged care.
The National Disability Insurance Scheme (NDIS) supports NDIS participants under 65 years with a disability to live in the community and use housing, care and services that suit you.
From 1 July, under the new Aged Care Act, if you are aged under 65 years, you can only access Australian Government-funded aged care services if you have care needs and are either:
- an Aboriginal or Torres Strait Islander person aged 50 years or over
- homeless or at risk of homelessness and aged 50 years or over
- already living in an aged care home or accessing aged care services.
Residential aged care resident agreement
If you are aged under 65 years, and approved to enter residential aged care, you will sign a resident agreement and an accommodation agreement with the aged care home. This will set out the care and services you will receive and the costs.
Entering residential aged care
The NDIS may assist eligible younger aged care residents with care costs.
You also need to contribute to your residential aged care costs. The types of fees and how much you pay will depend on:
- your income and assets, as assessed in your aged care means assessment
- the level of care you require
- the home you choose.
Your NDIS support coordinator or NDIS planner will discuss aged care fees when developing your NDIS plan.
The NDIS Younger People in Residential Aged Care Operational Guideline details NDIS aged care fees and support.
Accommodation costs
Lump sum deposit
The NDIS does not fund lump sum deposits, such as:
- refundable accommodation deposits (RAD)
- refundable accommodation contributions (RAC).
But you can still choose to pay a lump sum for your accommodation.
The lump sum balance will be:
- refunded by the provider when you leave the aged care home
- less any amounts that have been drawn down from the lump sum to pay other aged care costs while in the aged care home.
Daily payment
If you are assessed as ‘low means’, you are eligible for government assistance with your accommodation costs.
You may be asked to contribute towards your accommodation as a Daily Accommodation Contribution (DAC). The NDIS will help with this payment. Your aged care provider will need to tell you the DAC payment amount.
If you don’t have ‘low means’ status, you will pay the agreed room price and can choose to pay by Daily Accommodation Payment (DAP). The NDIS will help with part of this payment – up to the value of the service’s eligible maximum accommodation supplement.
Providers may need to tell the NDIS this amount. You must pay any amount that is higher than the service’s eligible maximum accommodation supplement. The NDIS does not fund this.
Basic daily fee
The basic daily fee helps pay for your day-to-day services, such as meals, cleaning, facilities management, and laundry.
You must pay this fee. The NDIS does not fund daily living costs, so does not help pay for the basic daily fee.
Means-tested care fee
This is a contribution that some people pay towards their cost of care, determined by a means assessment.
If you are required to pay a means-tested care fee, the NDIS may assist you with this fee.
Services Australia or your aged care provider can advise you of the fee.
Additional service fees
You will be responsible for paying additional service fees, often ‘hotel-type services’, if you choose to access these services. The NDIS does not assist with these fees.
Entered aged care before 1 July 2014
If you entered aged care before 1 July 2014, you will receive some assistance from the NDIS with aged care fees. These amounts will be included in your NDIS plan.
Your NDIS support coordinator or NDIS planner will discuss aged care fees when reviewing your NDIS plan.
Read more information on aged care costs if you entered care before 1 July 2014.
Accommodation bond or charge
The NDIS does not fund the accommodation bond, which is based on the type of accommodation and level of care needs.
The NDIS will help you with the accommodation charge payment. This payment applies if you moved into an aged care home and had high-level care needs.
Income tested fee
If your income is above the threshold, your provider can ask you to pay an income tested fee calculated by Services Australia.
The NDIS will support you with the income tested fee.
Additional service fees
You will be responsible for paying additional service fees, often ‘hotel-type’ services’, if you choose to access these services. The NDIS does not assist with these fees.
Cross billing payments for residential aged care subsidies and supplements
If you are a younger aged care resident, your NDIS plan will include ‘Cross billing payments for residential aged care subsidies and supplements’.
You do not need to do anything with this item. It is the cost of subsidies and supplements that the government pays for aged care residents, and is managed by the National Disability Insurance Agency.
Read more information in the NDIS Younger People in Residential Aged Care Operational Guideline.
More information
To understand the costs of aged care, read more information on aged care home costs and fees.