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The Costs of Residential Aged Care

In Australia there is a minimum cost of aged care set by the Government, which can be covered with the rate of the pension (plus rent assistance). If you are financially disadvantaged then there is financial assistance available. You can find out what you are entitled to by contacting My Aged Care on 1800 200 422.

Daily Care Fees

In subsidised aged care there are two key fees, daily care fees and accommodation payments.

Daily Care fees refer to the basic services which must be provided in all homes such as meals, laundry/cleaning and mobility assistance. In high level care homes daily care fees can include the cost of specialised equipment that the resident needs to function on a daily basis, help with medications, nursing procedures et cetera.

The daily care fees are calculated by:

  • A basic daily care fee
  • An income-tested fee

The basic daily care fee is paid by everyone, the fee paid by those who receive no other income other than the pension or are on a part pension. 

If you have other income other than the pension, you will be assessed to determine how much extra you may be required to pay.

Regardless of your income situation, you cannot be asked to pay more in daily care fees than the actual cost of your care.

Accommodation Payments

Accommodation payments are different to daily care fees and are used by aged care homes to improve buildings and services. Not everyone pays this fee as it depends on the value of your current assets.

When calculating your assets the family home is not included if it is being occupied by a spouse, dependent child, close relative or carer who has lived there continuously for the past five years and is on an income support payment.


The amount of the RAD/DAP is decided between you and the aged care provider.  If you decide to leave the home, the balance of the RAD will be refunded.

Find out more: Making Sense of RAD & DAP

Do you need help finding aged care services?

My Care Path can provide you with a complete end to end consultancy service to assist you in navigating the complexities of aged care. Our consultants are ready to help - call today for a friendly, no-obligation chat! 

Call 1300 197 230

Article posted:Jun 24, 2019
Category: Residential Aged Care

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