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Navigating the cost of aged care in Australia can feel overwhelming, but knowing the different fees, government support options, and payment methods can make planning much easier. Whether you’re arranging care for yourself or a loved one, understanding the financial side helps you make informed choices and avoid unexpected expenses.
| Fee Type | Description | Cost / Amount (as of 20 March 2025) |
|---|---|---|
| Basic Daily Fee | Covers meals, cleaning, laundry, and utilities. Paid by all residents. | $63.82/day ($23,294.30/year) – 85% of the single basic Age Pension. |
| Means Tested Care Fee | Extra contribution for personal and clinical care, based on means assessment. | $0–$407.33/day with annual and lifetime caps. |
| Accommodation Costs | What you pay for your room. Government may cover costs if you meet low-income and asset thresholds. | Government covers if income < $34,005.40 and assets < $61,500.00. |
| Additional Service Fees | Optional extras such as premium meals, pay-TV, or upgraded toiletries. | Set by provider – not subsidised. |
| Extra Service Fees | Higher standard of hospitality in approved “extra service” rooms. Charged whether used or not. | Set by provider – not subsidised. |
Below is a more in-depth breakdown of the main aged care fees you may encounter, based on the latest rates from 20 March 2025.
Purpose: Covers everyday living expenses such as meals, cleaning, laundry, and facilities maintenance.
Amount: Set at 85% of the single basic Age Pension – currently a maximum of $63.82 per day. Updated each 20 March and 20 September.
Who Pays: All residents in government-subsidised aged care homes, regardless of income or assets. This fee is payable even during short absences (e.g. holidays or hospital stays).
Purpose: An additional contribution towards personal and clinical care, calculated after a means assessment by Services Australia.
Amount: Between $0 and $407.33 per day.
Caps:
Annual cap: $34,311.23
Lifetime cap: $82,347.13
Not everyone is required to pay this fee. It’s based on your income and assets and can change over time.
Purpose: Contributes to the cost of your room.
How It Works:
If your income is below $34,005.40 and assets are below $61,500.00, the government will pay your accommodation costs in full.
If you have higher means, you may need to pay some or all of the cost.
Your means status is set at the time you enter care and will not change, even if your finances do.
Purpose: Covers optional “hotel-style” extras, such as premium toiletries, pay-TV, or other comfort services.
Amount: Set by the aged care provider (not subsidised).
Notes: These services must be agreed to in advance and are only charged if you use them, unless they are a mandatory inclusion in your care agreement.
Purpose: Provides a higher standard of accommodation and hospitality, such as specialised meal options or upgraded furnishings, in approved “extra service” rooms.
Amount: Set by the provider and applies whether or not you use all the included services.
Notes: Ask for a list of bundled services before agreeing.
If you are experiencing genuine financial difficulty, you may be eligible for assistance with the Basic Daily Fee, Means Tested Care Fee, and Accommodation Costs. Assistance does not cover Additional or Extra Service Fees.
More information:
Services Australia – Financial Information Service (FIS): 132 300
My Aged Care: 1800 200 422
Refundable Accommodation Deposit (RAD):
A lump-sum payment, fully refundable when you leave the home.
Daily Accommodation Payment (DAP):
An ongoing, non-refundable daily fee.
You can also choose a combination of both. From 1 November 2025, providers can retain up to 2% per year of the RAD for a maximum of five years. Seek independent financial advice to decide which option suits your situation.
You do not always need to sell your home to pay for aged care. If a protected person (such as a spouse, dependent child, or eligible carer) remains living there, it will be exempt from the asset test. If no protected person lives there, the home may be counted as an asset in your means assessment.
If you can afford it, you’re expected to contribute to your accommodation costs.
Low means: Government pays the full cost.
High means: You pay the full cost.
Part means: You share the cost with the government.
Exact amounts depend on your assessment by Services Australia.
Everyone pays the Basic Daily Fee.
Other fees depend on your means assessment.
You may qualify for government help with accommodation and care costs.
Seek independent financial advice before deciding on payment methods.
Fee rates are updated every March and September.
Confident choices start with our Home Care Shortlist. Take the stress out of finding support - our Home Care Shortlist makes it easy to connect with trusted providers near you. Just tell us what you need and we’ll match you with qualified local providers - saving you hours of calls and confusion.
