There are a number of costs associated with aged care homes, and getting an idea of how they impact your finances can be difficult. Here is a basic layout of your possible costs:

Basic daily fee

Based on current rates, the maximum basic daily fee is $61.96 per day, or $22,615 per year.

This fee helps pay for your day-to-day services such as meals, cleaning, facilities management and laundry. Everyone is expected to pay a basic daily fee to cover these services.

The basic daily fee is 85% of the single person rate of the basic age pension. The government sets the price on 20 March and 20 September each year, changing in line with increases to the age pension. Prices are published on the Department of Health website.

You pay your basic daily fee directly to your aged care home, generally on a fortnightly or monthly basis. The fee applies for every day you are a resident, including days when you might be away overnight; for example, on holiday or in hospital.

Means-tested care fee

The means-tested care fee that you pay will be between $0 to $252.20 per day. 

Not everyone will have to pay a means-tested care fee. The exact amount you will pay is determined through an income and assets assessment.

The means-tested care fee is an ongoing fee that you pay towards the cost of your personal and clinical care. Personal care can include help with bathing, dressing, grooming, and going to the toilet. Clinical care can include services like specialised nursing services, medication assistance, or catheter care. 

Annual and lifetime caps

There are annual and lifetime caps on means-tested care fees. The maximum an aged care home can charge you is: 

  • $33,309.29 per year, or

  • $79,942.44 in a lifetime.

Accommodation 

Each home sets its own pricing, depending on factors such as the location of the facility and the size of the rooms. The amount you pay for your accommodation depends on your eligibility for government help.

Government help with accommodation costs

If you can afford it, you are expected to pay for your room. However, help with some or all of the accommodation costs is available to those that need it. This is determined by an income and assets assessment, but as a general guide:

  • if you have income below $27,250 and assets below $49,500, the Australian Government will pay your accommodation costs

  • if you have income above $68,750 or assets above $168,250, you will need to pay for the full cost of your accommodation, negotiated and agreed to with the aged care home

  • if you need to pay for part of your accommodation, the Australian Government will pay the rest.

More information on how the income and assets assessment is used can be found below, or you can read more on the government’s Income and assets assessment page.

Do I have to pay the full accomodation cost upfront?

No, you have a choice as to how you can pay. The options available are: 

  • a lump sum (a refundable accommodation amount)

    • If the government is helping with the costs, this is called a Refundable Accommodation Contribution (RAC).

    • If you are paying the full amount yourself, it’s called a Refundable Accommodation Deposit (RAD).

  • rental-style daily payments (a daily accommodation charge)

    • If the government is helping with the costs, this is called a Daily Accommodation Contribution (DAC).

    • If you are paying the full amount yourself, it’s called a Daily Accommodation Payment (DAP).

  • or a combination of both (for instance, to make the total required of $300,000 you could choose to pay $100,000 as a refundable lump sum, and the rest through smaller non-refundable daily payments).

If you choose to pay an amount as a lump sum, any unused money is refundable when you leave the home.