Understanding aged care costs in Australia
Aged care costs can be confusing. Here’s a plain-English guide to what you can expect to pay.
The Basic Daily Fee
Everyone in residential aged care pays a basic daily fee set by the government — currently 85% of the single Age Pension — covering meals, laundry, and utilities.
Accommodation: RAD vs DAP
Accommodation can be paid as a lump sum (Refundable Accommodation Deposit, RAD), a daily fee (Daily Accommodation Payment, DAP), or a combination. The RAD is fully refunded when you leave.
The Means-Tested Care Fee
Residents with higher income or assets may pay a means-tested care fee, assessed by Services Australia. Annual and lifetime caps apply.
Support at Home Program
For those receiving care at home, the Support at Home program provides government-funded support with co-contributions based on means assessment.