Aged care fees and charges

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Aged care fees and charges

So it’s time for you or a loved one to consider going into residential aged care? But what exactly will it cost?

Things can get a little complicated when it comes to aged care fees and charges as there are a number of factors that are likely to impact the cost.

This article is designed to give a breakdown of the possible fees for aged care so you have a clearer picture of the true cost of aged care entry fees.

Fees for aged care

There are a number of aged care fees and charges you will likely be required to pay. These include:

  • Accommodation costs (government subsidy applies)
  • Basic daily fee
  • Means-tested care fee (government subsidy applies)
  • Extra service fees
  • Additional service fees.

* (Source:

Accommodation costs

Accommodation costs will be the major cost towards long-term aged care. However, what you pay will vary depending on the aged care home you choose, its location, the range of on-site facilities and services it offers, and the size and quality of the room or unit.

The accommodation fee may consist:

  • A refundable bond or lump sum up-front. This is called a Refundable Accommodation Deposit
  • A daily amount. This is called a Daily Accommodation Payment
  • A combination of a Refundable Accommodation Deposit and a Daily Accommodation Payment.

*** (Source:

Basic daily fee

The basic daily fee is paid directly to the aged care home, and covers day-to-day services such as cleaning, meals, laundry and the management of facilities (such as garden care). The fee is set twice a year by the Federal Government and everyone in aged care pays it.

The current maximum basic daily fee is $54.69. **(Source:

Means-tested care fees

The means-tested care fee is just that – an extra contribution that some people pay determined by a means test.

Means-tested care fees can range between $0 – $264.81 a day.

This fee goes towards the cost of personal (bathing, grooming, toileting) and clinical care (specialised nursing care, medication assistance) at the aged care home.

Additional and extra service fees

Want Netflix or demand? Or a weekly hairdressing or massage appointment?

Some aged care homes allow residents to select from a range of ‘additional’ services, but you pay for what you use. Others care homes will offer a package of services – and they will be a condition of living in the home.

Some aged care homes also offer extra ‘hotel-style’ services such as fine dining options, quality furnishings and luxury linens. Again, these come as an extra cost.

Contact us

MBA Financial Strategists have been committed to helping their clients reach their short and long-term financial goals since 1985.

Our expert team is well-versed in the aged care sector and can guide you in the process of managing and accessing aged care.

Call us on (08) 8357 3999 or book an appointment with one of our financial advisers today.



**Australian Government Department of Health and Aged Care