Ongoing Fees

There are three ongoing care fees that may be payable when entering care:

Basic daily care fee: a contribution towards daily living costs such as nursing, meals and personal care.

This fee is based on 85 per cent of the full Basic Single Age Pension and generally all aged care residents are required to pay this fee for each day they are in care.

Means-tested fee: may be payable in addition to the basic daily care fee and is an additional contribution to the cost of care. This fee is based on a formula that takes into account your income and assets. The general rule of thumb is the higher level of income and assets you hold, the higher this additional fee will be.

Extra services fee: charged by the facility for extra services provided. This may include pay TV, a larger room or additional leisure activities. This fee is determined by the facility. 

Accommodation Fees

This fee goes towards the cost of your room. 

The Australian Government will pay for your accommodation costs if your combined income and assets sit below a certain amount.

If required, you have the choice of paying as follows:

• a refundable lump sum (RAD) – aged care facilities can charge a maximum RAD of up to $550,000. A higher charge requires approval by the Aged Care Pricing Commissioner.

• a daily accommodation payment (DAP) – is required if you do not pay the RAD in full. It is effectively “interest” payable on any lump sum RAD not paid.

• a combination of the above. 

Consult a qualified Financial Adviser for strategies to try and minimise the costs.

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