Aged Care - The 28 Day Decision
17 Apr

Moving into residential aged care is a big step, and one of the most important financial decisions you’ll need to make is how to pay for your room.

The legislative rules provide clear guidelines on your payment options and the timeframe in which you must decide.

With so much happening when you make the move, it’s easy to feel overwhelmed or rushed. That’s why it’s important to understand the 28-day rule.

What is the 28-day rule?

Once you move into residential aged care, you have 28 days (from date of permanent entry) to decide how you want to pay for your room. This cost is separate from your daily care fees and can be covered in one of three ways:

1. Refundable Accommodation Deposit (RAD) – a lump sum payment that is refunded when you leave or pass away (minus any allowed deductions).
2. Daily Accommodation Payment (DAP) – an ongoing daily fee based on the government-set interest rate.
3. Combination of RAD and DAP – a mix of both options, offering flexibility based on your financial situation.

The 28-day decision period gives you time to explore your options and seek advice to ensure you make the best financial decision. Aged care providers should not require you to make this choice before you move in.

If you are unsure or need more time, you can let the care provider know that you choose to pay the daily accommodation payment (DAP). This allows you to move in without committing to a lump sum upfront. You can still switch to paying a lump sum RAD at any time if it becomes the better option for you.

No matter which option you choose, unless the full lump sum RAD is paid, you will need to cover the remaining balance as a daily accommodation payment.

Changes from 1 July 2025

From 1 July 2025, new contribution rules will apply for people moving into residential care. You will still have the same three payment options, but you won’t have to decide within 28 days.

Instead, the default payment method will be the daily accommodation payment, and you can decide later whether to pay a lump sum RAD when it suits you.

These changes aim to reduce financial pressure on families by allowing more time to make the right decisions.

Making the right choice

Deciding how to pay for your aged care room is a significant financial decision. It’s important to consider your savings, assets, and long-term financial needs before making a choice.

Speaking to a financial adviser accredited in aged care advice can help you understand your options and choose the best approach for your situation.

If you or a loved one is moving into aged care, start planning as early as possible. The right advice can help you feel confident in your decision and ensure the best financial outcome for your future.

 
Call Oxley Partners today on 02 48686100  to arrange a time to discuss your situation with Trevor Fair..

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BAS Lodgment Tips
17 Feb

Tips to help you stay on top of your BAS

The due date for your October–December business activity statement (BAS) is around the corner.

We know small businesses are busy, so we want to help you get your BAS right. Here are some tips to help you before you lodge.

• Make sure you enter the figures for your obligations at the correct label, and only complete fields that apply to you.
• Enter whole dollar amounts, leave cents out and don’t round up to the next dollar.
• If you have nothing to report for the period, you can lodge a ‘nil’ BAS online by selecting ‘Prepare’ and then ‘Prepare as nil’, or you can call the ATO automated service.
• If you made a mistake on your last BAS, instead of lodging a revision, you may be able to use your current BAS to fix them. For example, you can use label 1A to adjust GST on sales, label 1B to adjust GST on purchases, or label 7C if you have claimed fuel tax credits for fuel that has subsequently been sold, lost or disposed of.
• You can also use your BAS to vary an instalment amount.
• You won’t be able to get extra time to lodge this quarter as everyone gets 8 weeks to lodge. However, if you lodge your next quarterly BAS online, or through a registered tax or BAS agent, you may be able to get an extra 2 or 4 weeks to lodge and pay.
• If you still receive paper BAS, update your ATO communication preferences from ‘paper’ to ‘online’. Online statements are generally available one week after the generation date, but it may take up to 3 weeks to receive your BAS by post. You will also receive other correspondence more quickly from us, receive less paper and save the time it takes to file these documents.

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