Residential Aged
Care Costs
What fees and charges are included in residential aged care?
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Your Accommodation charges in aged care
The price of a bedroom is determined by the Care Community, depending on the type of bedroom.
For example, a private bedroom with an ensuite will be more expensive than a companion bedroom with a shared bathroom. Any bedroom price over $750,000 is approved by the Aged Care Pricing Commissioner.
The amount you can be asked to pay towards your accommodation is based on your Income and Assets Assessment. Once your assessment is complete, Services Australia will advise you what fees and charges a residential aged care provider can ask you to pay. Your assessment will place you in one of the following categories:
- Supported: the Government will pay for your accommodation.
- Partially supported: the Government will contribute to some of your accommodation costs and you will be asked to pay the balance.
- Financial: you will be required to pay your full accommodation costs.
If you’re required to pay part or all of your accommodation, you can pay for your accommodation in three ways:
1. Refundable Accommodation Deposit (RAD): A lump sum amount that is refundable to you when you leave the Care Community for any reason, minus provider retentions and any outstanding charges owed under your agreement.
Under the Aged Care Act (2024), providers are required to retain 2% of the lump sum amount each year for a maximum of five years (the retention amount is calculated daily and deducted from the lump sum monthly).
Retention requirements also apply to those residents who are partially supported by the government and choose to pay a Refundable Accommodation Contribution (RAC), a reduced lump sum amount. Importantly, both RADs and RACs are 100% government guaranteed.
2. Daily Accommodation Payment (DAP): A rental style equivalent, which is a daily interest payment on the full bedroom price. The maximum permissible interest rate is set by the government and is fixed on the date you enter care and doesn’t change unless you voluntarily choose to move bed or bedroom.
DAPs are indexed to the Consumer Price Index (CPI) and change twice a year in March and September.
Those residents who are partially supported by the government pay a daily accommodation contribution (DAC), which unlike the DAP is not indexed to CPI. As both the DAP and DAC are interest-only payments, neither is refundable in any part.
3. Combination of a RAD/DAP or RAC/DAC: A combination of the two types of payment above whereby you can pay a partial lump sum amount and the remainder as a daily accommodation interest payment.
Only the partial lump sum payment is refundable when you leave the Care Community. You have 28 days from the day you move into a Care Community to decide which payment method best suits your financial situation.
The rental style (DAP) must be paid until you decide on your preferred method of payment. More information about payments for accommodation is available on the My Aged Care website.
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The basic daily fee covers your day-to-day living costs in residential aged care such as meals, cleaning and laundry, heating and cooling. This fee is the same for every resident in every aged care residence across Australia regardless of your financial situation.
The basic daily fee is set by the Federal Government and is calculated as 85% of the single person rate of the basic age pension. It’s indexed with the age pension (it increases when the aged pension increases) and is adjusted every March and September. Please check myagedcare.gov.au/aged-care-home-costs-and-fees for the most current fee.
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The Means-Tested Care Fee applies to residents who are assessed to have sufficient means to contribute to their overall residential aged care costs, including nursing and personal care. If you’re required to pay a means-tested care fee, the amount will be clearly stated on the determination letter you receive from Services Australia after completing your Means Assessment.
Please be aware that the government reviews your financial situation each month to determine if there are any changes to your income and assets and may adjust your means-tested fee in line with changes to your situation.
There is an annual cap and a lifetime cap on the means tested care fee. You can view the current maximum amount that can be charged on the My Aged Care website.
As you may only find out that you are eligible to pay a means-tested care fee after you’ve already moved into care, we recommend you seek independent financial advice before you move into care and/or use the government’s My Aged Care Fee Estimator, which can be found at myagedcare.gov.au.
Remember that the accuracy of the estimated fee generated by the Fee Estimator depends on the accuracy of the information you enter.
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Higher Everyday Living services are optional inclusions available in some Care Communities. These are over and above what we’re required to provide under the Aged Care Rules 2024 and the Residential Care Service List. These services are designed to enhance the resident experience by offering a range of inclusions that promote wellbeing.
Not every Care Community offers Higher Everyday Living services, and the services themselves vary between Care Communities. For more information about these services and what’s available, please speak to the Customer Support Team in the Care Community of your interest.
Estimate your DAP with our Cost Calculator
Seek independent financial advice
Before committing to residential aged care, we strongly advise seeking independent financial advice. This step can help you unlock any eligible government assistance and provide an informed estimate of your likely care costs. If you need help finding an independent advisor, our team at your local Opal HealthCare Community is always ready to assist, or you can contact the Department of Health and Aged Care (DOHAC) for a referral.
FAQs - Questions and Answers about Fees and Charges
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Your Means Tested Fee may change if your financial circumstances change. Services Australia informs your aged care provider when your fees have been adjusted as a result of a change in your financial situation. Your aged care provider will make the adjustments to your fees and also notify you of the changes.
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You have up to six months to pay the RAD or RAC. You’ll be charged the Daily Accommodation Payment (DAP) or Contribution (DAC), which is the government-set interest rate on the full price of the accommodation until the refundable deposit or contribution is received.
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Your lump sum is refundable to you under the following circumstances:
- If you give at least 14 days written notice of leaving the Care Community, your lump sum will be repaid within that period.
- If you notify Opal HealthCare in writing more than 14 days before you leave, your lump sum will be refunded on the day you leave.
- If you give no written notice of your departure, your lump sum must be repaid within 14 days after your leave date.
- In case of death, the lump sum must be refunded 14 days after the provider is presented with a certified copy of probate or letters of administration.
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If you ask to move bedrooms, you may either be asked to pay the increase or be given a refund, depending on whether the new bed is more expensive or less expensive than your current arrangement.
When you move bedrooms voluntarily and are paying a Daily Accommodation Payment, the new DAP amount will be calculated based on the MPIR rate set by the Government at that time.
If your care needs change and the Care Community requires you to move to a different bed or bedroom, the Care Community will make every effort to accommodate a move without impacting your fees.
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The Australian Government has measures in place to help residents who are having difficulty paying for their care. If you need help, please call the My Aged Care Information Line on 1800 200 422.
