Aged care costs if you entered care before 1 July 2014

Everyone who lives in an aged care home can be asked to pay the basic daily fee. This fee helps cover the costs of daily living such as meals, cleaning, laundry, heating and cooling.

For pre-1 July 2014 residents, the fee is one of the following:

• standard basic daily fee: this is 85% of the single basic age pension. The amount changes with the age pension amount each year in March and September.
• non-standard basic daily fee: this is 96.5% of the single basic age pension. You pay this fee if you first entered residential aged care before 20 March 2008. On 19 September 2009, and on each day since then, you must not have a dependent child and must meet one of the following criteria:
  • not be getting an income support payment
  • have paid an accommodation bond that is more than 10 times the basic age pension amount at the time of entry into care
  • have not provided income and asset information to Services Australia.

If you no longer meet the criteria on or after 20 September 2009, you will pay the standard basic daily fee.

• protected basic daily fee: this is 77.5% of the single basic age pension. You pay this fee if you were in care on 19 September 2009, and on that day:
  • were a self-funded retiree or part pensioner
  • your private income was equal to or more than the threshold amount for protected residents.

If your income is above the income threshold when Services Australia or DVA assesses you, your provider can ask you to pay an income tested fee. This fee is different for everyone because it’s based on your income and the cost of your care.

Your income tested fee will be between $0 to $104.11 (indexed) per day.
 
The fee is equal to the income tested amount or the cost of your care – whichever is lower. Services Australia calculates and advises the income tested fee.

Your income tested fee can change while you are in care, but there’s a maximum that you can be charged per day. This maximum changes over time.

For more information on basic daily fees, income tested fees, and rates and charges that apply to residents, read the Schedule of Fees and Charges for Residential Care.

There are 2 types of pre-1 July 2014 accommodation costs: accommodation charges and accommodation bonds.

An accommodation charge may have been applied if:

• you moved into an aged care home and had high-level care needs (other than an extra-service place).

An accommodation bond may have been applied if:

• you moved into an aged care home and had low-level care needs, or
• you moved into an extra-service place with high-level care needs.

If you move to a new home and remain under the pre-1 July 2014 fee arrangements:

• you will pay a bond in your new home if you were paying a bond or entry contribution in your old home
• you will pay a charge in your new home if you were paying a charge in your old home.

Read more about accommodation charges and accommodation bonds if you entered care before 1 July 2014.

A full list of current rates and charges that apply to residents is available in the Schedule of Fees and Charges for Residential Care.

Many aged care homes offer additional hotel-type services such as a preferred brand of toiletries, access to paid TV services, or arranging a hairdresser. These services are currently paid for through extra service fees or additional service fees. From 1 November 2025, these two existing fees are being replaced by a new higher everyday living fee that will still allow you to access these additional services.

Providers have until 31 October 2026 to transition residents from the extra service fee or the additional service fee to the higher everyday living fee. Any extra service fee or additional service fee agreements that remain in place on 31 October 2026 will cease.

A higher everyday living fee must not be agreed or charged before you have entered care, and it cannot be used as a condition of entry or to secure a room.

A higher everyday living fee agreement must be in place and must outline the cost of each higher or additional service to be delivered, the standards and frequency at which they will be delivered, and how they will be charged.

You should not be asked to pay for a service that you cannot or will not use. This does not prevent a bundle from including a service that you cannot use, but you must not be worse off than if you paid only for the services you can use.

There is a 28-day cooling off period. This means you can cancel or vary your higher everyday living services within this period without a cancellation fee. Your provider needs to be notified of this, but there is no minimum notice period.

After the initial 28-day cooling off period:

• if you choose not to use the service, or are no longer able to use the service, it can be cancelled or varied with 28 days’ notice
• in some instances, your provider can pass on expenses incurred beyond the 28-day period if they are unavoidable (for example, subscription fees), but for no more than 90 days.

If your provider can no longer deliver the service it must be cancelled or varied immediately.

Your higher everyday living fee agreement must be reviewed at least once a year to ensure you still want the services.