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Aged care homes accommodation costs

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Depending on your income and assets you may be asked to pay an accommodation contribution or accommodation payment. This is for your aged care home accommodation. This is in addition to the:

  • basic daily fee
  • means-tested care fee
  • fees for extra and additional services.

Your income and assets assessment will determine if you will receive assistance with your accommodation costs. Some people will have their accommodation costs paid in full or in part by the Australian Government. Others will need to pay the price agreed to with the aged care home.

If you are eligible for assistance with your accommodation costs from the Australian Government, the Department of Human Services will tell you and the aged care home the amount that you will need to pay based on an assessment of your income and assets.

If you do not complete an income and assets assessment, you will not be eligible for any Australian Government assistance towards your accommodation costs.

This means your aged care home provider may ask you to pay:

  • the maximum accommodation price (agreed with the aged care home before you start care) and
  • the full cost of your care.

Paying for accommodation

If you are eligible for assistance with your accommodation costs, the amount you can be asked to pay for your accommodation is based on your income and assets, and will be one of the following:

  • No accommodation costs: if your income and assets are below a certain amount, the Australian Government will pay your accommodation costs.
  • An ‘accommodation contribution’: if you need to pay for part of your accommodation, the Australian Government will pay the rest. You can choose if you would like to pay your accommodation costs by a refundable accommodation contribution (RAC), daily accommodation contribution (DAC) or a combination of both.

If you are not eligible for assistance with your accommodation costs and need to pay the full costs of your accommodation, you can be asked to pay:

  • An ‘accommodation payment’. You can choose if you want to pay your accommodation costs by a refundable accommodation deposit (RAD), daily accommodation payment (DAP) or a combination of both.

You will need to negotiate your room price directly with your aged care home.

Fee estimator for aged care homes

You can use the fee estimator tool to help you estimate what fees your aged care home provider may ask you to pay. Use the income and assets checklist to help you fill in the estimator.

Financial hardship assistance

If you believe you will face financial hardship in paying your aged care home costs, you can ask to be considered for financial hardship assistance.

Aged care home costs if you received care before 1 July 2014

Aged care home costs are different if you entered an aged care home before 1 July 2014. If you were in an aged care home before 1 July 2014, these changes do not apply and you may continue to be asked to pay your current costs.

If you transfer to a new aged care home provider, you can choose to opt into the new arrangements, or you can choose to keep your current fee arrangements.

Booklet

The Fees for Home Care Packages and Residential Aged Care for People Entering Care from 1 July 2014 booklet provides more details on aged care home costs.


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Last reviewed: 12 April, 2017.