Fees & Charges
Residential Aged Care
There are three fees you may be required to pay when entering residential aged care:
- Basic Daily Fee
- Means Tested Aged Care
- Accommodation Payment
Basic Daily Fee
This fee covers living costs such as meals, laundry and electricity. This fee is set at 85% of the single person rate of the basic age pension and increases in line with the pension each March and September.
This fee is paid by all residents and - for some - may be the only fee paid.
Means Tested Care Fee
This is an additional contribution towards the cost of care that some residents may be required to pay. Services Australia will calculate if there is a requirement to pay this fee based on an assessment of a resident's income and assets, and advise the amount.
There are annual ($34,174.16) and lifetime ($82,018.15) caps in place that apply to the means tested care fee. Once these caps are reached, a resident cannot be asked to pay further means tested care fees.
Accommodation Payment
This is for accommodation in the home chosen. Some residents will have their accommodation costs met in full or in part by the Australian Government, whilst others will need to pay the accommodation price (Refundable Accommodation Deposit or equivalent Daily Accommodation Payment) applicable for the home.
Eligibility for assistance from the Government with the accommodation cost is determined by Services Australia and is based on the assets of the resident.
Income & Assets Assessment
All residents entering into Aged Care are assessed to determine if they are eligible to receive assistance with their accommodation costs from the Australian Government or if they need to pay a means tested care fee.
For this assessment to occur, the form Permanent Resident Aged Care - Request for a Combined Assets and Income Assessment (SA457) must be completed and lodged with Centrelink. If this form is not completed, a resident will not be eligible for any Australian Government assistance toward their fees and will have to pay the full cost of both their care and accommodation, which can be quite substantial.
Residential Care Fee Estimator
A useful tool to help estimate the fees a prospective resident may be asked to pay is contained on the MyAgedCare website.
This fee estimator is to be used as a guide only but does give some idea, based on the income and assets entered into the estimator, of the fees that may be applicable to permanent entry into a home.
This tool is provided as a guide for your general information only. It can help you estimate the fees and payments you may be asked to pay while living in an aged care home. It does not cover facilities such as retirement villages.
The actual amount of the fees and payments payable will depend on your personal situation, the time you enter care, the information you provide to the relevant Australian Government Departments and your personal and financial information at the time of the assessment. If you do not complete the assessment, you may be asked to pay the maximum fees and charges.
This Fee Estimator is not a substitute for financial advice. You should consider seeking independent legal, financial, taxation or other advice to check how the estimate relates to your particular circumstances.
We respect your privacy and the information you provide will not be used for any other purpose except to provide an estimate. The Australian Government will not store the information you enter into the fee estimator. This information will be deleted once you close your internet browser.