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 that you can be asked to pay towards your accommodation is based on your Means 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 completely refundable to you when you leave the Care Community for any reason.Those who are partially supported by the government have the option to pay a refundable accommodation contribution (RAC). The refundable amount is 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.
Those who are partially supported by the government will be asked to pay a daily accommodation contribution (DAC). Since this is a monthly interest-only payment, it is not refundable in any part.
3. Combination of both (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 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 the My Aged Care Homes and Fees page 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 care fee in line with changes to your situation. There’s 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.
Remember, the accuracy of the estimated fee generated by the Fee Estimator depends on the accuracy of the information you enter.
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If you enter care before 1st November 2025, you may be offered Additional or Extra services. These optional fees are for higher-end services. After 1st November, these optional extras will be called Higher Everyday Living Fees (HELF).
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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When a resident leaves residential aged care or passes away, Opal HealthCare will refund the lump sum to the estate of the deceased resident, minus any other allowable amounts (such as any outstanding fees).
For residents who entered aged care after 1 November, providers are required to retain 2% of the lump per annum. Retentions are calculated daily and deducted monthly and cease after 5 years in care.
The refund will be made within 14 days of receiving one of the following certified documents: A Grant of Probate or Letters of Administration.
We recommend you seek legal advice regarding questions around probate. For general questions about the refund of a lump sum, please call the Customer Support Manager in your Care Community
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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 speak with your Care Community or call the My Aged Care Information Line on 1800 200 422.
