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Comprehensive aged care
information for all Australians

How Much Will It Cost Me?

Residential Aged Care

Government Funding:

When considering going into an aged care home, it is advisable that you obtain a means test to determine how much of your aged care fees will be subsidised by the Commonwealth Government. It is not compulsory to obtain a means test through the Department of human services however, if you are not means tested then you will not receive a financial subsidy from the government towards your care.

It is worth getting an assessment prior to entering into residential care so that you know from the onset of the service what you will need to contribute. Be aware that it does take time for the assessment letter to be delivered.

You can free call the Department of Human Services on 1800 227 475 for further information.

Although you may receive the Australian Government subsidy, you may need to contribute to the cost of your accommodation if you are able to do so. This is determined by completing a combined income and assets assessment through the Department of Human Services.

There is a fee estimator tool available at www.myagaedcare.gov.au

There are annual caps placed on the amount that you can be asked to contribute to your care.

For more information and to find the specific amount of the income tested care fee, go to www.myagedcare.gov.au.

Accommodation Costs:

If you have been told that you need to pay the full cost of your accommodation after completing the assets and income assessment form through Department of Human Services, it will be by way of one of the following:

  • A Refundable Accommodation Deposit (RAD):
    • This is the full cost of your accommodation paid as a lump sum and you have up to six months to pay this after entering the aged care facility.
  • A Daily Accommodation Payment (DAP):
    • This is the full cost of your accommodation paid the Daily accommodation payment is the equivalent to the refundable accommodation deposit however it is paid periodically.

If you have been told that you are eligible for assistance for your accommodation costs after completing the assets and income assessment form through Department of Human Services, it will be by way of one of the following:

  • A Refundable Accommodation Contribution (RAC):
    • This is your financial contribution towards your accommodation, where it has been determined that you are eligible for assistance and you don’t need to contribute the full cost of your accommodation.
    • It is a lump sum payment.
  • A Daily Accommodation Contribution (DAC):
    • This is a daily contribution towards accommodation costs. It is a rental style payment that is the equivalent of the refundable accommodation contribution, but it is paid periodically.

For further information regarding accommodation costs in aged care homes, please go to www.myagedcare.gov.au or call 1800 200 422.

Home Care Packages:

There are four levels of home care packages.

Each level of home care package provides a different amount of funding.

This subsidy is paid to an approved home care provider once you have entered into a home care agreement with one.

The subsidy contributes to the total cost of your service and care delivery. It is also expected that you will contribute to the cost of your care through a basic daily fee, and in some cases an income-tested care fee.

Coins

Basic Daily Fee:

Your service provider may ask you to pay a basic daily fee which currently doesn’t exceed 17.5% of the single person rate of the basic aged pension.

From 20 September 2017, the basic daily fee was $10.17 per day based on the current age pension. This amount applies even if you are a member of a couple.

The basic daily fee is calculated daily, and you pay the basic daily fee for every day you are receiving a home care package from the day your care starts, to the day your care ends.

Income-Tested Care Fee:

Your service provider may ask you to pay an income-tested care fee that is based on your individual income and is in addition to the basic daily fee.

It is determined by completing an Aged Care Fees Income Assessment form through the Department of Human Services. The income assessment is purely based on income and not assets, however, if you are a part of a couple then half of your combined income will be tested to determine the income tested care fee (irrespective of who earned the income).

The amount of subsidy that the Government would normally pay to a provider is reduced by the maximum amount of income-tested care fee that the consumer can be charged.

For further information go to www.humanservices.gov.au or free call the Department of Human Services on 1800 227 475.

Additional Fees and Costs:

Your service provider might charge administration costs and case management fees.

These fees are typically deducted from the home care package government funds that the provider receives.

Be sure to ask your provider if they charge these fees and how much they charge.

Flexible Care

The Australian Government may subsidise certain flexible care however you will be expected to contribute towards your care financially if you are able to do so.

For more information about flexibe care and associated costs, go to www.myagedcare.gov.au or phone 1800 200 422.

It is important to know that different service providers may charge differently. It is important to discuss the costs involved in respect to your care with your service provider prior to receiving services.

Flexible Care

The Australian Government may subsidise certain flexible care however you will be expected to contribute towards your care financially if you are able to do so.

For more information about flexibe care and associated costs, go to www.myagedcare.gov.au or phone 1800 200 422.

It is important to know that different service providers may charge differently. It is important to discuss the costs involved in respect to your care with your service provider prior to receiving services.