Aged Care Online
HomeCaring
The Australian Government pays for the bulk of aged care services in Australia through subsidies paid to aged care providers.

You may be asked to contribute costs if you are financially able to do so, however there is help available if you are unable to pay for care and accommodation costs. You will never be denied access to aged care if you cannot afford to pay the fees. 

If you or a loved one is moving into residential aged care you may be asked to pay: 

A basic fee: this is a fee paid by everyone who receives residential care. For some people, this may be the only fee you need to pay.  

A means tested care fee: this is an extra contribution towards the cost of care that you may need to pay - on top of the basic fee - depending on your income and assets.  

An accommodation payment: this is a payment for accommodation in an aged care home.You may have your accommodation costs paid in full or in part by the Australian Government or you will need to pay the accommodation price you negotiate with your aged care home.  

Extra service fees: this is an extra payment you can pay if a higher standard of accommodation is chosen or additional services such as hairdressing or pay TV in rooms is elected.  

What is a Refundable Accommodation Deposit? 

A Refundable Accommodation Deposit (RAD) is a lump sum payment for accommodation in an aged care home. This is the price of a room, in lump sum form that you have agreed with your aged care home to pay. You can pay the accommodation price in full by RAD or you can pay via a combination of a smaller RAD and Daily Accommodation Payment (DAP) or you can pay in full by DAP.  

If you and your aged care home agree, you can ask your provider to deduct certain amounts from the lump sum you've already paid - for example for care fees. The RAD (minus any amounts deducted, as agreed) is refunded when you leave the aged care home.  

What is a Daily Accommodation Payment? 

A Daily Accommodation Payment (DAP) is the daily payment for accommodation in an aged care home. The aged care facility will work out the DAP based on a legislative formula that converts the RAD to a DAP price. You will make this payment on a regular basis, up to a month in advance - similar to paying rent. The DAP is not refunded.  

You can choose to pay a combination of a RAD and a DAP for your accommodation costs.  

Read more about RADs and DAPs here.

Search for residential aged care vacancies in:


Need help finding aged care?

Our free aged care concierge and comparison service will help you find the best options tailored to your needs. Get a personalised shortlist, completely free, and make informed decisions with confidence.

Call 1300 197 230

Article posted:Jun 9, 2019
Category: Aged care financial planning

RSL ANZAC Village Renewal Redefines Ageing: Veteran and Senior Voices Driving Inclusive, Future-Focused Living

on Friday, July 4, 2025

RSL LifeCare is proposing a transformation of RSL ANZAC Village - one of the Northern Beaches’ most iconic communities. The renewal will reimagine the 86-year-old site as a modern, tranquil village for veterans and seniors, where independence, wellbeing and connection are at the heart of everyday life.

How to Find the Right Home Care Provider in Melbourne

on Thursday, July 3, 2025

As our loved ones age, many families in Melbourne are turning to home care services to help older Australians live independently in the comfort of their own homes. Whether you’re just beginning your search or looking to switch providers, navigating the options can feel overwhelming. Fortunately, finding the right home care provider in Melbourne doesn’t have to be difficult—especially with the right tools and information at your fingertips.

Barney, the little horse who made a big impact at Harden Grange Aged Care

on Thursday, July 3, 2025

When Barney the pony wandered casually through Harden Grange Aged Care Community in country New South Wales, recently, there were gasps of delight from residents. Barney was brought in by volunteer Courtney and her son who visit monthly as part of a pet engagement program. 

Care Connect’s workforce evolution: Why multidisciplinary teams are key to home care reform

on Wednesday, July 2, 2025

As Care Connect marks 30 years of supporting older Australians to live independently, the home care provider is doubling down on a future-focused strategy that places workforce development, client empowerment, and multidisciplinary care at the heart of its growth.

Page 1 of 1108  > >>