Costs & fees
Aged care costs in Australia, in plain English
Aged care fees look complicated because several different fees work together. Here's what each one is, who pays it, and where to get an estimate for your own situation.
The four building blocks
Every aged care home fee, explained
When someone moves into a government-subsidised aged care home, the cost is made up of these parts. What you actually pay depends on your income, your assets and the room you choose.
Basic daily fee
$68.93 per dayEveryone pays this
This covers day-to-day living: meals, cleaning, laundry, heating and cooling. It's set at 85% of the single basic age pension and is adjusted every March and September, no matter your income or assets.
Accommodation payment
Varies by home and roomMost people pay something
This pays for your room. You agree a room price with the home before moving in, then choose how to pay: a refundable lump sum (a RAD), a non-refundable daily payment (a DAP), or a mix of both. If your income and assets are low, the government helps with — or fully covers — this cost.
Means-tested contributions
Up to $22.15 + $109.45 per dayDepends on your income and assets
Services Australia assesses your income and assets. If you can afford to, you contribute towards everyday living services (the hotelling contribution, capped at $22.15 a day) and personal and clinical care (the non-clinical care contribution, capped at $109.45 a day with a lifetime cap of $140,652.80). Full pensioners with few assets often pay nothing here.
Higher everyday living fee
OptionalOnly if you choose extras
Some homes offer a higher standard of hotel-style services — premium meals, wine with dinner, extra activities — for an additional fee. This is always optional and agreed with the home before you move in.
Figures shown are the maximum rates current from 20 September 2026. Fees are indexed twice a year, so always check the latest rates on My Aged Care before making decisions.
Recent changes
What changed on 1 November 2025
New fee names
The new Aged Care Act renamed the fees for people entering care from 1 November 2025. The old "means-tested care fee" became the hotelling and non-clinical care contributions, with new caps.
RAD retention and DAP indexation
Under the new arrangements, homes can keep up to 2% per year of a RAD for up to five years, and daily accommodation payments are indexed over time. People already in care keep their existing arrangements under the "no worse off" principle.
Caps still protect you
Lifetime caps limit what anyone can be asked to pay towards care, and people with low means still have their accommodation subsidised by the government. Nobody is refused care for an inability to pay.
Your own numbers
Get an estimate in minutes
The Australian Government's free fee estimator gives you a personalised estimate based on your income and assets — no personal details required. Your actual fees are set by Services Australia after a formal means assessment.
Open the My Aged Care fee estimatorOfficial resources
- My Aged Care
The government's starting point for all aged care — call 1800 200 422.
- Aged care home costs and fees
The official guide to current fees, caps and means assessments.
- Aged care home fee estimator
Estimate what your family might pay, in about ten minutes.
For decisions about the family home, pensions or large payments, independent advice from a licensed aged care financial adviser is well worth it — we can point you to trusted specialists.
Fees still feel overwhelming?
We explain the exact figures for your family's situation, free, before you commit to anything.