How do residential care home fees work?
It can be overwhelming and confusing to know how much residential care costs will apply when moving into residential aged care. Everyone can afford residential care. Depending on income and assets, the Australian Government may pay some fees. We have tried to simplify the residential care costs as much as possible below. For more information, contact our friendly and knowledgeable Admissions Team on 1300 653 600 who are experts in all things aged care.
The aged care system in Australia involves a few different fees. Not all fees are relevant to everyone, this depends on each person’s income and assets. Centrelink will work out which fees apply.
- A basic daily fee
- An accommodation payment or contribution
- A means-tested care fee
- Fees for additional services
Basic Daily Fee
This covers everyday living costs such as meals, cleaning, laundry, heating and cooling. Everyone moving into an aged care home can be asked to pay this fee and it is equal to 85% of the single basic age pension.
Accommodation payment or contribution
This is the amount charged for a room. Some people will have all or part of this cost covered by the Australian Government.
There are 3 main payment options available:
1. Refundable Accommodation Deposit (RAD)
The RAD is paid up front and is refunded when you leave the care home.
2. Daily Accommodation Payment (DAP)
This payment is accrued daily and is not refunded when you leave the care home.
3. A combination of both
You can combine the above options to suit your budget.
A Means-Tested Care Fee
Centrelink will tell you if this fee applies, based on an income and assets assessment. This fee covers the cost of daily care needs such as nursing and personal care.
Additional fees are payable if moving into an Extra Services room, or our Adelaide metro care homes which have Elevate Club or Elevate Lifestyle programs in place.
A fee estimator is available through My Aged Care.