While many people baulk at the price tag on a luxury car, for many Australians, the most expensive purchase they will ever make isn’t a Ferrari – it’s aged care.

Across most capital cities, the price of a typical aged care bed now comes with a lump sum of around $750,000. Some beds are cheaper, particularly those with shared bathrooms, in regional areas or older homes. Others, in premium locations with hotel-style amenities, can exceed $3 million. There’s a wide range – but even the “mid-range model” is far from cheap.

The Ferrari 296 GTS is priced at $688,000, which is still cheaper than the cost of aged care.

Whether you pay your accommodation cost as a lump sum Refundable Accommodation Deposit (RAD), a Daily Accommodation Payment (DAP), or a combination of the two is up to you. If you pay the full lump sum, there is no DAP.

The lump sum is refunded when you leave, less a retention fee of 2 per cent, per annum, capped........

© The Sydney Morning Herald