What is a Refundable Accommodation Deposit? (RAD)
A refundable accommodation payment is an amount of money paid or payable by a resident for entry to residential care. The balance of the refundable accommodation payment (after agreed deductions have been drawn down) will be refunded to the resident or their estate on termination of the agreement for residential services.
What is a Daily Accommodation Payment? (DAP)
A daily accommodation payment is an amount calculated by converting the refundable deposit payment into a daily charge using the maximum permissible interest rate that applied at the time of admission.
How is the Refundable Accommodation Payment Amount Determined?
The amount of the refundable accommodation payment is set for each type of accommodation Warrina Innisfail offers. Refer to RAD/DAC of unit.
Does Warrina Innisfail keep any Money from the Refundable Accommodation Payment?
Normally there will be no deductions from the capital value of the refundable accommodation payment while the resident is in care. Residents who choose a combination of RAD and DAP may elect to have the amount of the daily accommodation payment deducted from the capital balance of the refundable accommodation payment.
Are There Minimum Assets that a Resident must be Left With?
Residents cannot be charged a refundable accommodation payment if it would leave them with less than the permissible asset value of 2.5 times the annual pension. A supported resident will not be asked to pay a refundable accommodation payment because they have assets less than this value.
How Long do I Have to Pay the Refundable Accommodation Payment?
Refundable accommodation payments can be paid up to six months from the date of entry. Interest is calculated daily from the date of entry for unpaid RADs and is invoiced monthly. Residents may change their mind about their options for paying a RAD, DAP or combination up to 28 days after admission.
What is the Rate of Interest?
Interest rates for unpaid RADs are determined by the Australian Government, and are based on the Treasury Yield Note. The current rate of interest will be shown in the key features statement for each type of accommodation available.
What are my Choices for Paying an Accommodation Payment?
Accommodation payments can be paid as lump sum amounts, by daily payment or a combination of both. Where accommodation payments are paid by a combination of RAD and DAP, the amount and frequency of the payment will be advised in the offer of care and is determined in conjunction with the resident. Amounts paid as daily accommodation payments are non-refundable.
When are Refundable Accommodation Payments Returned?
As outlined in the Resident Agreement we supply on admission, we guarantee repayment of the Refundable Accommodation Payment Balance in accordance with the following criteria.
The Refundable Accommodation Payment Balance will be refunded if:
- The person being cared for dies; or
- Ceases to be provided with Residential Care in the Care Facility; or
The Care Facility ceases to be certified under the Act.
The refundable accommodation payment balance will be refunded within the following time frames:
- On death – within 14 days after the day on which a certified true copy of the grant of probate or letters of administration of your estate is produced to us;
- On moving to another residential care service and:In any other case – within 14 days of the happening of any of the circumstances set out above.
- We have been notified more than 14 days before the day on which you cease to receive care at the Warrina Innisfail Facility – on the day on which the care ceases; or
- We are notified within 14 days before the day on which you cease to receive care at the Warrina Innisfail Facility – within 14 days after your notification; or
- We are not notified of your intentions – within 14 days after we cease to provide care to you; or
- In any other case – within 14 days of the happening of any of the circumstances set out above
At the time the refundable accommodation payment balance is refunded, we must also pay to you interest on the outstanding refundable accommodation payment balance calculated at the Base Interest Rate for the period from the day after the occurrence of that event until the date on which the refundable accommodation payment balance is refunded in full.
If any of the events referred to above occur and the refundable accommodation payment balance is refunded to you after 14 days from the occurrence of that event, then, at the time the refundable accommodation payment balance is refunded, Warrina Innisfail must:
- For the first 14 days after the relevant event has occurred, pay to you interest on the outstanding refundable accommodation payment balance calculated at the Base Interest Rate for a period 14 days; and
- Thereafter pay to you interest on the outstanding refundable accommodation payment balance calculated at the applicable Maximum Permissible Interest Rate until the date the refundable accommodation payment balance is refunded in full.
How do I know if Warrina Innisfail is Managing my Accommodation Payment Money Responsibly?
Since 1 October 2011 the Disclosure Standard contained within the User Rights Principles has required that residents paying accommodation payments must receive a statement that the approved provider will provide certain information within seven days of a request (refer section 23.42(1)(c) of the User Rights Principles).
Warrina Innisfail is the approved provider for Warrina Innisfail and Warrina Villanova Centre. Under the Aged Care Act 1997 (the Act), residents and prospective residents or their representatives are entitled to receive particular information from their approved provider on request.
This includes, in relation to the previous financial year:
- A summary of the permitted uses for which Warrina Innisfail has used refundable accommodation payments
- Information about whether Warrina Innisfail complied with the requirements for permitted uses of refundable accommodation payments and with the prudential requirements for refundable accommodation payments.
- Information about the number of refundable accommodation payment balances (if any) that were not refunded in accordance with the time frames set by the Act. For entry contributions (payable before 1997), information about the number (if any) that were not refunded in accordance with the entry contribution agreement
- A copy of the independent audit opinion on Warrina Innisfail compliance with the prudential requirements for accommodation payments
- Most recent statement of audited accounts of Warrina Innisfail.
Warrina Innisfail must also provide:
- If you have already paid an refundable accommodation payment, a copy of your entry in the accommodation payments register
- If Warrina Innisfail invests refundable accommodation payments in particular kinds of permitted financial products, the investment objectives and the asset classes we may invest in.
Residents, prospective residents or their representatives may request any or all of the available information. Warrina Innisfail must provide the information within seven days of the request, and the information must be correct at the time of the request.
How Can I Get More Information?
Warrina Innisfail Admissions Manager will be happy to help with any further queries you may have:
(07) 4030 2500