The MPIR is expected to take a slight decrease next quarter, with the rate expected to be set at 8.34% per annum from 1 April 2024. After two years of rate rises, this is the first reduction we have seen in the MPIR and reflects changes in interest rates over the last quarter.
This rate applies to new residents who enter care from 1 April 2024 to 30 June 2024 (inclusive) as well as RAD-paying clients who move rooms or any resident who moves to a new provider during this timeframe.
For example, a room with a RAD of $500,000 at 8.34% will convert to a daily accommodation payment (DAP) of $114.25 per day ($41,700 per annum).
Aged care is complicated and the impact the MPIR has on a person's cash flow, highlights the importance of seeking advice from an accredited Aged Care Specialist. If you know someone who is going into residential aged care, needs to change rooms or facilities and wants assistance understanding their options, call Sophie Doyle on 02 4325 0884 or email [email protected]
Sophie Doyle (AR#000470612) is a Retirement and Aged Care Specialist at Morgans Financial Limited (Morgans AFSL 235410 / ABN49 010 669 726); with a passion for assisting people make informed financial decisions, as they navigate their way through retirement and aged care.
Disclaimer: While every care has been taken, Morgans Financial Limited makes no representations as to the accuracy or completeness of the contents. The information is of a general nature only and has been prepared without consideration of your individual objectives, financial situation or needs. Before making any decisions, you should consider the appropriateness for your personal investment objectives, financial situation or individual needs. We recommend you see a financial adviser, registered tax agent or legal adviser before making any decisions based on this information. Current at 13 March 2024.
