Aged care costs

esidents who enter aged care in Australia are required to pay:

+ care fees
+ accommodation fees
+ optional extras

Depending on the resident’s financial circumstances they may be eligible for Government assistance towards their costs.

Care fees

These fees are determined by the Government and cover the cost of nursing care, meals and housekeeping services.

They include:

Basic daily fee for aged care


The Means Tested Care Fee is indexed and capped annually ($26,566.54), and over the lifetime of a resident ($63,759.75)*.

*Correct to March 20, 2018


Accommodation Fees

This will differ depending on the type of room you choose. Prices are usually advertised on an aged care organisation’s website.

You can pay in three different ways:


1. A Refundable Accommodation Deposit (RAD)

This is a lump sum, and the balance is refunded when the resident leaves our care, minus any agreed deductions

Eg. $300,000


2. A Daily Accommodation Payment (DAP)

Instead of paying a lump sum you can pay a daily fee based on the RAD,

charged at the Maximum Permissible Interest Rate 

(currently 5.70%)

Eg. $300,000 x 5.70% / 365 = 

$46.85 per day


3. Any combination of both

Pay part Refundable Accommodation Deposit 

and part Daily Accommodation Payment

Eg. Half of $300,000 + $150,000 x 5.70% / 365 = 

$23.42 per day


*The MPIR is updated quarterly. Correct as of October 1, 2017- December 31, 2017


Optional extras

Depending on the Home the resident may have to pay extra for services such as telephone, internet, hair appointments and allied health services such as dental, podiatry etc.


Extra Services

Some Homes offer Extra Service places, for people seeking a premium aged care experience.

These places incur an extra daily fee, and may include:

 Ensuite rooms with superior furnishings and decor
 Massage therapy
 LCD televisions with Foxtel
 Choice of menu and wine with dinner
 Complimentary phone service 
 Wi-Fi service 
 Daily newspaper delivery
 Weekly hairdressing services