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If you’re starting to look into seniors living or retirement options, you will soon be confronted with a barrage of acronyms you would have never heard before.

Do you know a RAC from a RAD or a DAC from a DAP? With many of the key acronyms around the funding and financing of retirement options, you could soon find yourself entering a confusing minefield where failure to understand the difference between similarly sounding acronyms could have financial consequences.

Don’t worry, here are the most common acronyms you’ll find when you’re working out the best option for you and what they mean.

MAC – My Aged Care

My Aged Care, often referred to as MAC, is the Australian Government’s starting point for anyone looking to access government-funded care services. Visit My Aged Care online or call 1800 200 422.

ACAT – Aged Care assessment team

Anyone looking to access Government-funded care – whether that’s home care, respite or residential aged care will need to undergo an ACAT assessment. This assessment will determine your care level.

ACFI – Aged care funding instrument

The aged care funding instrument (ACFI) is used to measure the level of care each resident needs, based on activities of daily living, residents behaviour and complex health care. Outcomes are then used to allocate Australian Government subsidy to residential aged care providers to care for the residents.

HCP – Home Care Package

A Home Care Package provides Government funded services that will help you to remain at home for as long as possible. Home care packages are available in four levels. From Level 1 for low care up to Level 4 for high care.

CDC – Consumer directed care

Consumer directed care is a model of service delivery that puts consumers at the centre of their own care. The Home Care Package program moved to a CDC model in early 2017, which gave people more control over their care and the right to choose the types of care and services they receive as well as who delivers those services.

CHSP – Commonwealth Home Support Program

The CHSP gives entry-level home support to older people still living independently at home. It covers basic services such as domestic support and transport.

RAD – Refundable accommodation deposit

The upfront accommodation payment paid by a non-supported resident when entering aged care. As the name suggests, this payment is refunded when the resident leaves the facility.

RAC – Refundable accommodation contribution

If the resident is fully or partially supported, a RAC is payable when entering aged care. The contribution amount is based on the asset assessment.

DAP – Daily Accommodation Payment

This payment applies to non-supported residents who choose not to pay the RAD as a lump sum. The DAP is worked out by converting the RAD to a daily amount, which is payable as a periodic amount by aged care residents.

DAC – Daily accommodation contribution

Payable by fully or partly-supported aged care residents, a DAC applies for those who don’t pay the RAC as a lump sum and is instead broken up into periodic payments with an interest rate set by the Department of Social Services at the date of entry.

With the different choices around paying for accommodation upfront or as ongoing payments, it’s always worth getting aged care financial advice before moving into aged care.

For an alternative approach to, with no DAC/DAP confusion, discover the Seasons difference.

Belinda Peters
Belinda brings more than 17 years experience in journalism to her role as Seasons Digital Content Writer. As our blog editor, Belinda will take the confusion out of aged care with entertaining and informative stories from across the aged care industry and our Seasons communities.
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