Aged Care Fees & Charges

There are a number of costs associated with residential aged care homes. How much and the type of costs you will have to pay depends upon the home you choose and an assessment of your income and assets (means assessment). The different types of residential aged care home costs are:

• Basic Daily Fee – an amount everyone pays for the daily services they receive. This is set at 85% of the single person rate of the basic aged pension.
• Hotelling Supplement Contribution – this supplement covers daily living expenses such as cleaning, meals, and laundry — over and above the Basic Daily Fee. Like other fees, it is means-tested with a daily cap of $12.55, ensuring individuals with higher financial means contribute more toward the cost of their accommodation.
• Non-Clinical Care Contribution – this fee replaces the Means-Tested Care Fee and covers the cost of non-clinical services like social support, lifestyle activities, and administration. It is calculated based on an individual’s income and assets, and is capped at a daily rate of $101.61, with a lifetime limit of $130,000 or four years, whichever comes first.
• Other fees- The Higher Everyday Living Fee is CraigCare’s Enhanced Everyday Living Package. It is an additional fee and is not mandatory for you to purchase this Package. It is special optional extra services designed to make life at CraigCare feel even more like home (e.g. dining upgrade, entertainment services).

Some aged care fees are negotiable while others are not. The Refundable Accommodation Deposit (RAD) and Enhanced Everyday Living Package may be negotiated with aged care homes.

The Basic Daily Care Fee, Hotelling Supplement Contribution, and Non-Clinical Care Contribution are set by the Commonwealth Department of Health and apply to all residents. These fees are standard and cannot be negotiated.

Many people keep receiving the same amount of pension after they move into a residential aged care home unless they have a significant change in circumstances. 

Your pension will contribute to your costs associated with paying the required Basic Daily Care fee which everyone is required to pay across all aged care providers. This fee helps pay for your daily services such as meals, cleaning, home management and laundry. The Daily Care fee is set at 85% of the single person rate of the basic aged pension. The government updates it on 20 March and 20 September each year in line with increases to the aged pension.

The most common aged care myth is that you must sell your home to pay for a Refundable Accommodation Deposit (RAD) when moving into residential aged care. You have the option of paying either a lump sum RAD upfront, a daily payment or a combination of both. Any amount you do not pay as a lump sum incurs interest at a rate set by the federal government. This is the Daily Accommodation Payment (DAP). It is like an interest-only loan or similar to a rent payment. 

No. You should use the Income and Means Assessment Tool to find out if this is a requirement depending on your circumstances. You can access this tool at www.myagedcare.gov.au. 

Yes. If you find out that you do need to pay a Hotelling Supplement Contribution, there is a cap on what you can be asked to pay. The daily cap is $12.55 per day.

If you are required to pay the Non-Clinical Care Contribution, the daily cap is $101.61 with a lifetime limit of $130,000 or four year,s whichever comes first.

If you are part of a couple, half of your combined income and assets will be included in your means assessment. This happens regardless of who earns the income or whose name the asset is held in.

Yes, if you have gifted assets over $10,000 in a single year or $30,000 in total over a rolling period of five years, these amounts will be included in your assessment.

If you have a spouse, partner or dependent child still living in the family home at the time of the assessment or at the time you enter into care; a close family member has lived in the family home for at least 5 years and is eligible for an income support payment (e.g. government pension or allowance); or a carer has lived in the family home for at least 2 years and is eligible for an income support payment (e.g. government pension or allowance). For more information, contact Department of Human Services on 1800 227 475.