Aged care daily fees and costs guide

Moving into a residential aged care home is a big decision, and it’s important to understand the different fees and charges you may need to pay. These depend on the aged care home you choose, the level of care you need, the services available and your finances.

This guide outlines the key types of fees you may encounter when entering residential aged care.

 

Cost of aged care in Australia

Aged care daily fees are broken down into four areas:

1. Care

Care costs relate to the clinical care you will receive while living in an aged care home. The government can partially or fully fund it. The cost of aged care will depend on the level of care you need (determined by a care assessment) and your ability to contribute to the cost (determined by a means assessment). If you’re required to contribute to care costs, it’s called a means tested care fee.

2. Accommodation costs

Accommodation costs depend on the specific home and room you choose. Services Australia assesses the amount you contribute towards accommodation costs following a means assessment.

Based on this assessment, you may be required to pay the accommodation costs in full, contribute to the cost, or pay nothing. If you are eligible for government support, the government will pay an accommodation supplement directly to the provider, covering either the full cost or the difference between your contribution and the provider’s maximum supplement rate. You can choose to pay your share as a lump sum, daily payment, or a combination of both.

3. Living (basic daily fee)

Living costs encompass a range of services accessible once you live in a home. This aged care daily fee is paid by all residents in care, regardless of income or assets. They include all day-to-day services like meals, laundry, cleaning and heating/cooling. For some people, this is the only fee they are required to pay. This fee is set at 85% of the single basic Age Pension and is updated twice a year in line with pension changes

4. Additional services

There are optional extra costs depending on your preferences. For example, some aged care homes will offer enhanced lifestyle options or services, such as:

• paid/satellite tv;
• phone and internet;
• onsite hairdresser and beautician;
• special therapies such as massage, aromatherapy and hydrotherapy;
• facilities like a gym, pool, cinema, workshop and library; and
• a wider choice of meals and inclusions such as beer, wine and spirits.
  
  

These additional services must be clearly defined and priced in your agreement with the provider. Providers must also give you an itemised account showing the value of each individual service, even if services are bundled into packages.

 

Means-tested contributions

Based on your assessment, you may be required to pay additional fees based on your financial means. These contributions help cover the cost of non-clinical care and everyday living services in aged care homes.

• Hotelling Supplement Contribution (HSC): This covers everyday living costs such as meals, cleaning, laundry, and utilities. This is capped at approximately $12.55 per day.
• Non-Clinical Care Contribution (NCCC): This covers personal care services such as bathing, mobility assistance, and lifestyle activities. This is capped at approximately $101.16 per day, and is subject to a lifetime cap of $130,000 or a maximum of four years in permanent care, whichever comes first. 

 

How are aged care fees calculated?

• The assessment

Services Australia assesses your financial situation to determine the fee. They consider your income and assets. 

Your income includes your pensions, wages and any other income sources. Your assets are your savings, investments and the value of your home. The value of the family home is exempt from the aged care asset assessment if a protected person is living in the home.

• Calculating the fee

Based on your income and assets, Services Australia will advise the aged care provider of your required contributions. You will also receive a letter outlining your fees and any applicable caps.

• Caps and protections

There are safeguards in place to ensure that aged care remains affordable. The Basic Daily Care Fee is capped at 85% of the single basic Age Pension. The Means-Tested Contribution for Living Costs is subject to annual and lifetime caps, which limit the total amount you can be asked to pay over time.

Accommodation costs vary depending on the location, room type, and provider. If you are required to pay a Refundable Accommodation Deposit, the amount will be agreed upon before you enter care. While this deposit is refundable, providers may deduct up to 2% per year of residence for a maximum of five years (capped at 10%), as outlined in the Aged Care Act 2024.

 

For further information, read our aged care costs resource or call Estia Health at 1300 682 833.

If you’re looking for other aged care services, such as home care support, visit My Aged Care.