Aged Care Costs Made Easy

30 January 18

The decision to enter an aged care facility can often present a stressful situation for the many people involved and understanding the costs can cause additional worry. So here’s a simplified explanation of the costs involved.


Essentially this is like paying board, it covers your day-to-day living costs like meals, washing, heating, laundry and 24 hour care. Care fees are made up of the Basic Daily Fee and potentially a Means Tested Care Fee.

This is the same across all facilities and is set by the government at 85% of the pension (currently $49.42 per day). All residents must pay this fee.

If your assets are above $162,087 or you have an annual income of $26,072 you will have to pay a contribution to your care. Centrelink will advise how much of a contribution that you will be expected to make. If you do not meet this threshold the government pays your share of the cost.


Your accommodation payment helps cover the cost of your room, amenities and maintenance. It is set by the facility and can be paid as:

  • A lump sum (RAD) – This payment is just like a bond that you would pay if you were renting somewhere and is fully refundable when you leave OR
  • A daily contribution (DAP) – This payment is like rent and is non-refundable OR
  • A combination of the two

Depending on your financial situation (typically assets above $47,500) you may have to pay all, some or none of the Accommodation Payment.


There are some fees that you may be charged for additional services such as podiatry, newspaper delivery etc. that are not covered in the other fees and charges.

As with any major life decision you should seek professional advice from a qualified financial advisor or the Department of Human Services.