Unscrabble the Lingo of Retirement and Aged Care
The ABCs of RAD, GSC, ILU, DMF etc.
by Lesa Macpherson
Are you finding the terminology of Retirement Living options and Aged Care confusing? Trying to get your head around some of the abbreviations you need to know?
Don’t feel confused. We can help you decipher those complicated terms. Here’s some you might come across:
ACAT: Aged Care Assessment Team.
The team you need to know. They are dedicated to determining your best care options – at home, or in care.
DAP: Daily Accommodation Payment.
This is the payment for aged care accommodation. It is paid fortnightly or monthly and is non-refundable.
DMF: Deferred Management Fee.
This occurs in most Retirement Villages and is often also called the exit fee. This is often misunderstood and is in a sense, a deferred purchase cost. The DMF helps the Retirement Village pay for building all the community facilities you enjoy (pools, sports facilities, community rooms etc.). Generally when you enter a Retirement Living complex your purchase price is cheaper than relative values in the area. The DMF is paid upon exit, and is a percentage of either your purchase price, or sale price (depending on the particular village contract). Usually it is relative to the time you’ve been there. The DMF is often confusing and varies from contract to contract, so seek the advice of a specialist lawyer before signing.
GSC: General Services Charge.
This is payable for the day to day costs of management and administration, gardening, minor maintenance, recreation and entertainment facilities.
ILU: Independent Living Unit.
In the Retirement Village these are accommodation units/villas where people largely look after themselves, though usually some help is available (at a cost).
RAD: Refundable Accommodation Deposit
This is paid in part or in full upon entrance to an Aged Care facility, and is refunded upon exit (after deductions).
RTO: Right to Occupy.
Usually in Retirement Villages you purchase a Right to occupy. You don’t own the property. Often the RTO is referred to as a Lease or Licence.
LTD: LIVING THE DREAM. What we all hope for.
Retirement Living and Aged Care Law is complex. Contracts, whilst having some standard clauses through Government requirement, vary significantly between Village and Village. Advice prior to signing, or at least during any “Cooling Off” period is essential.