In Australia, the Government pays for the majority of aged care costs, but you will be asked to contribute to the cost of your care if you can afford to. 
We’ve broken the main fees down to help you understand what they mean.

 

Accommodation payment

This is for your accommodation in the aged care home. Some people will have their accommodation costs met in full or in part by the Australian Government, while others will need to pay the accommodation price agreed with the aged care home. Services Australia will advise you which applies to you based on an assessment of your income and assets. If you are required to pay the room cost, you will have a choice of how you wish to pay. The home will provide this information to you.

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An Accommodation Payment is paid as a Refundable Accommodation Deposit; as a Daily Accommodation Payment; or as a combination of both. You can choose how to pay, and we recommend you get professional advice from an independent financial adviser who has expertise in aged care when making this decision.

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‍You have 28 days from the day you move into our home, to decide upon your preferred method of accommodation payment. Until you make this decision, your accommodation costs must be made as DAP payments.

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Daily Accommodation Payment (DAP)

As the name suggests a DAP is an accommodation payment paid on a daily basis by invoice. It is calculated using a formula and interest rate set by the government. This payment is not refundable. The DAP is published by every aged care provider for each room type they offer.  

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Refundable Accommodation Deposit (RAD)

A RAD is an accommodation payment that is paid in a lump sum. Once you choose to pay a RAD, you’ll have 6 months in which to pay it. When a resident departs from an aged care home, their RAD is fully refunded to them or their estate. The RAD is published by every aged care provider for each room type they offer.

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Basic Daily Fee

For residential aged care, this is the basic fee that everyone pays when moving in. It is set by the government on the 20 March and 20 September each year. The basic daily fee is 85% of the single aged care pension. Prices are published on the Department of Health Website.

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Non-Clinical Care Contribution
This is a contribution towards the cost of care that some people may be required to pay as referenced in the Aged Care Act 2024. Services Australia will work out if you are required to pay this fee based on an assessment of your income and assets and will advise you of the amount. There are annual and lifetime caps in place to limit the amount you will need to pay.

Hotelling Contribution
This is a means tested amount that you may have to pay based on the assessment of your income and assets. Services Australia will notify you if you have to pay this contribution.