The Australian Government’s Schedule of Fees and Charges for Residential and Home Care is updated quarterly.
The following summary of fees and charges for residential aged care is based the latest update om 1 January 2024
The amount you will pay for aged care is affected by your level of income and liabilities, and the value of property or other assets you own in your name.
The Australian Government’s Schedule of Fees and Charges for Residential and Home Care is updated quarterly.
Here is a summary of the current fees and charges as they apply to residential aged care.
What does residential aged care cost?
In Australia, fees and charges for residential aged care are broken down into three areas:
Basic care fee:
Everyone entering residential aged care pays the same basic care fee. It is a standard fee that is not means tested. The basic care fee covers day-to-day living costs such as meals, cleaning, facilities management, and laundry.
This fee is paid directly to the aged care facility, usually on a monthly or fortnightly basis.
The basic daily care fee is set at 85% of the standard full aged pension and is currently $6 per day.
Means-tested fee:
The means-tested fee is calculated based on income and assets, including the resident’s home if they own one. A resident with over $32,331.00 in annual income and/or $58,500 in assets will pay a means-tested fee, which is an ongoing fee towards the cost of their personal and clinical care.
Means-tested fees are determined by an assessment coordinated by Centrelink or the Department of Veteran Affairs.
The maximum means tested care fee an aged care home can charge you as of 1 January 2024 is:
• $32,718.57 per year, or
• $78,524.69 in a lifetime.
Refundable Accommodation Deposit (RAD):
The Refundable Accommodation Deposit pays for the cost of the room a resident is moving into and is negotiated between the resident and the aged care facility.
The average RAD in Australia is about $470,000 but prices can vary greatly depending on location and facility.
If a resident has income below $32,331.00 and assets below $58,500 the Australian Government will pay the RAD for their accommodation.
A resident with annual income over $76,096.50 and more than $197,735.20 in assets will be asked to pay the full RAD for their accommodation.
Here is some more information about Refundable Accommodation Deposits and how they can be organised and paid: https://agedcaredecisions.com.au/what-is-a-rad/
Additional or ‘extra’ service fees
Many aged care homes offer additional services such as hairdressing, pay TV, specialised menus, or custom fittings and furnishings. If you agree to additional services or an ‘extra services’ room, you will need to pay these extra fees, as negotiated with the aged care facility. Additional and extra fees are not subsidised by the government.
Download the Schedule of fees and charges for residential and home care
How much will I pay for residential aged care?
To determine how much the government will contribute to your residential aged care fees, you need to complete two assessments:
An Aged Care Assessment
Aged Care Assessments are coordinated by government organisation My Aged Care.
This assessment involves a face-to-face interview with a member of the government’s Aged Care Assessment Team (ACAT), who will complete a comprehensive evaluation of the physical, medical, psychological, cultural, social, and restorative care needs of a potential aged care resident.
An Aged Care Assessment must be completed to access government-subsidised residential aged care.
You can organise an ACAT assessment by booking online at: https://www.myagedcare.gov.au/assessment or by calling My Aged Care on 1800 200 422.
An Assets and Income Test
This assessment considers the assets and income of a potential aged care resident to determine the level of fees and charges that will apply to that resident’s aged care placement.
The Assets and Income Test is coordinated by Centrelink or the Department of Veterans Affairs (DVA), and assesses detailed information about the potential resident’s income, assets, liabilities, and other payments such as the pension.
If this financial information is not provided to Centrelink or DVA, an aged care resident may be required to pay the maximum level of fees and charges.
Here is more information about the Aged Care Fees Income Assessment: Information you need to know about your request for Aged care fees income assessment (servicesaustralia.gov.au)
My Aged Care – Fee Estimator
The Australian government is committed to ensuring we are well looked after as we age. To get an idea of what you are likely to pay for residential aged care, you can use My Aged Care’s Fee Estimator: Fee estimator: How much will I pay? | My Aged Care
This simple calculator asks for details about your income, assets, and household to calculate what your fees may be. The figures it provides are an estimate. The exact amount you pay will depend on your financial situation when you enter care and the provider you choose.
How can I plan for residential aged care?
Aged care is an important and necessary service, but it’s crucial that the right decisions are made when it comes to choosing a facility for your loved one, or for yourself.
Aged Care Decisions helps thousands of Australian families at every stage of their residential aged care journey.
We are a FREE and independent service that can help you find residential aged care vacancies that suit your unique needs.
We use custom-built software that takes your location, budget, specific care needs and personal preferences, and creates a tailored residential aged care Options Report for you. This report narrows your search down to only include residential aged care vacancies that match your needs.
Essentially, we do all the running around for you. With no stress, no hassle, and at no cost to you.
Contact us now to start your aged care search.
