Navigating the financial complexity of a low means resident

Navigating the financial complexity of a low means resident

Our advisers tell us they are often contacted by facilities and asked for help when the admissions personnel suspect a resident will be assessed as ‘low means’.  Our upcoming webinar focuses on this important resident group. Identifying and managing potential residents assessed as ‘low means’ (also called concessional or supported) requires some additional considerations to ensure they are effectively supported, and for the facility to avoid any unintended financial outcomes.

Read on to learn more about practicalities to consider and register to our webinar to join us as we discuss this client group in more depth and answer your questions live.

How is a resident assessed as low means?

Pensioners (full or part) are assessed on their day of permanent entry by Services Australia using the financial details Centrelink has on file for them.  If they, or their partner, own a home or a retirement village unit, Service Australia will also require them to complete a form to determine whether the home will be included in the assessment. In cases where the resident is not a pensioner, Services Australia will require them to provide personal and financial information in the required form to avoid them being assessed as ‘means not disclosed’.

This subsequent assessment of their situation will determine if the resident is classified as low means and, if so, the DAC they will be required to pay (if any).

What Accommodation Supplement is payable for a low means resident?

For residents who are assessed as low means, a facility will receive the basic daily care fee (currently $54.69), an ACFI subsidy and one of the following accommodation supplements:

  • $60.74 per day if your facility has been significantly refurbished or newly built (on or after 20/04/2012)
  • $39.60 per day, if your facility hasn’t been significantly refurbished or newly built but meets the building requirements in Schedule 1 of the Aged Care (Transitional Provisions) Principals 2014
  • $33.26 if your facility does not meet these requirements

Note: the above supplements are reduced by 25% for any period where the facility has 40% or fewer low means residents.

If the resident is required to pay a Daily Accommodation Contribution (DAC), that amount goes towards the accommodation supplement.  The resident pays the DAC and the government pays the balance.  Either way, the facility will receive the full supplement.

Can a resident’s DAC be converted into a lump sum?

Yes, a resident’s DAC can be converted into a lump sum at any time at their request. The resulting lump sum is known as a Refundable Accommodation Contribution (RAC) and is capped at the Accommodation Supplement received by the facility.

From 01 July 2022 to 30 September 2022, for residents transitioning to permanent residential care during this period, the maximum permissible interest rate (MPIR) will be fixed at 5%.


  • a $60.74 per day accommodation supplement is equivalent to a $443,402 RAC
  • a $39.60 per day accommodation supplement is equivalent to a $289,080 RAC


Learn more at our upcoming webinar

We’ll be sharing more real-life examples as well as providing guidance on steps you can take and questions you can ask to ensure your potential residents and your facility avoid any unexpected surprises.

Thursday, 28 July 2022

1:00pm – 1:45pm AEST