| Basic daily fee | Accommodation payment |
| Fee payable by all residents to cover living expenses. | Means tested – may be paid as either an upfront lump sum, a daily payment or a combination of both. |
| Standard rate, currently $65.55 per day. | Means tested government subsidy of up to $70.94 per day available (‘maximum accommodation supplement’). |
All amounts shown are current as at 20/09/2025.
Basic daily fee
Aged care homes charge residents a basic daily fee as a contribution towards day-to-day living expenses such as meals, cleaning, laundry, heating and cooling. This fee is not means tested. For new residents, the maximum basic daily fee that can be charged is set at 85 per cent of the single basic aged pension rate. The basic daily fee increases on 20 March and 20 September each year in line with increases in the age pension rate.
Cost of accommodation
If a new resident is required to pay for their accommodation under the means test, they have up to 28 days after entering an aged care home to decide whether to pay a lump sum refundable accommodation deposit (RAD), a daily accommodation payment (‘DAP’), or a combination of both. If a RAD is chosen, the resident has up to six months after entry to pay it. This gives the resident time to sell assets (if required) in order to help fund the payment. In the interim, a DAP is paid. The DAP equivalent of the quoted RAD will be calculated using a rate up to the maximum permissible interest rate. These payment options apply regardless of whether the level of care provided is high or low.
The example below shows how a room priced at $500,000 could be paid as a combination of both RAD and DAP.
- A lump sum RAD of $400,000
- DAP of $20.85 per day, based on the balance of the cost ($500,000 – $400,000 = $100,000).
The DAP is calculated as follows:
- $100,000 x MPIR (as at 01/10/2025) 7.61% / 365
The resident will have the option of funding any DAP payable, from the RAD that they have paid to the provider. In this case, the provider will likely increase the DAP by an amount that compensates for the impact of the decreasing RAD balance.
The maximum amount of the RAD a resident can be asked to pay must leave the resident with at least the minimum permissible asset level, which is calculated as 2.25 times (rounded to the nearest $500) the basic single age pension rate at the time of entry.
As the name suggests, the RAD is fully refundable (except to the extent where any DAP amounts have been deducted from the RAD at the request of the resident) upon exit from the home, either payable to the individual or their estate upon death.
Who sets the prices and how are they published?
Approved aged care home providers must publish their current level of accommodation payments for the different types of rooms available. They need to show the DAP, the equivalent RAD and one example of a combination of both payments. A description of the key features of each different type of room must also be provided.
This information should be readily available on providers’ websites and in documentation provided to prospective residents and their families. It’s also published on the government’s My Aged Care website to facilitate comparison of prices.
Accommodation prices above the level set by the government (based on RAD of $750,000), need to be approved by the Aged Care Pricing Commissioner. The government subsidises the cost of accommodation by paying the aged care provider a means tested accommodation supplement. For new residential aged care facilities completed on or after 20 April 2012, or existing facilities that have been significantly refurbished on or after that date, the government sets a maximum accommodation supplement (MAS). For older facilities, a lower MAS is paid.
If a resident is assessed as being eligible to pay a MAS to the facility, and the cost of accommodation charged by the home is set at the MAS, the provider cannot charge the resident any additional amount for their accommodation. Where the resident is required to pay less than the MAS, the amount they pay towards their accommodation is referred to as an accommodation contribution. Where the full amount is required to be paid by the entrant, it is referred to as an accommodation payment. The amount of accommodation contribution payable is not fixed. It will vary as the care recipient’s means vary. As such, the care recipient may need to top-up a RAD or increase the amount of a DAP if the quarterly means testing results in a higher means tested amount. However, whilst the care recipient remains in a service where the cost of accommodation is set at the MAS, they cannot be asked to pay an accommodation payment, even if their means improve substantially. This means they will never be asked to pay more than the MAS.
Approved aged care home providers and residents may agree on an amount that is less than the published price.
Means tests
The amount someone pays for residential aged care depends on their income and assets, which are evaluated through a means assessment. For most individuals, Services Australia conducts this assessment. However, for clients of the Department of Veterans’ Affairs (DVA), the assessment is managed by the DVA. Contributions based on your means assessment.
Hotelling contribution: This is an additional contribution that some people on 1 November 2025 fee arrangements pay towards daily living services such as meals, cleaning and laundry.
Non-clinical care contribution (NCCC): This is an amount that some people on 1 November 2025 fee arrangements pay to cover personal care, such as bathing, mobility assistance, and lifestyle activities.
Means tested care fee: This is an amount that some people on 1 July 2014 fee arrangements pay toward the cost of their care.
Means tested care fee calculator
The calculator available on the My Aged Care website provides an estimate of the means tested care fee payable by an individual entering an aged care facility.
DVA pensions
Generally, individuals in receipt of DVA income support pensions are means tested in a similar manner to that of Centrelink pension recipients. This excludes the War Widows/Widowers Pension and DVA Disability Pension, which are both classed as compensation rather than income support and are not subject to a means test. However, the amounts received from these pensions are assessable income for aged care means testing.
Need some extra help?
Accommodation price list – Refer to attachment for each site in the Locations tab.
Resources to help – The best information is available on the government website – MyAgedCare
Seek independent advice – We strongly recommend that you seek independent advice regarding the financial aspects of residential care.