Aged care guide
Aged care costs and fees estimator
This page explains the 1 November 2025 fee arrangements. These may apply to you if you first enter permanent residential care on or after 1 November 2025.
Existing residents retain their existing accommodation costs and contribution arrangements for the entirety of their stay in residential care. Visit the Government website if you want to learn about the 1 July 2014 fee arrangements.
How much do aged care homes cost?
Residential aged care fees can vary, depending on the care home you choose, your financial situation and the level of care and services you require.
As a new resident, you will be required to pay a Basic Daily Care Fee. This is a standard contribution payable by all residents towards everyday living expenses such as meals, cleaning, and laundry.
In addition to the Basic Daily Care Fee and depending on your personal circumstances and the outcome of your income and assets assessment, you may also be required to pay other fees under the Aged Care Act, which came into effect on 1 November 2025.
These may include Accommodation Cost, which covers your room and living space and vary based on your financial situation and choice of accommodation. Our maximum room prices are published on this website. The Government may contribute to your Accommodation Cost if you are eligible for financial assistance.
You might also pay a Hotelling Contribution, which contributes to daily hotel-style services like meals, housekeeping, and laundry. Further, a Non-Clinical Care Contribution may apply for support services that enhance your wellbeing, such as bathing, social activities, lifestyle programs, and mobility assistance. The amount you pay is based on your income and assets assessment.
If you choose to add Higher Everyday Living Service after moving into care, an additional monthly fee will apply. These services are optional, vary by location and are designed to provide enhanced comfort, convenience, and lifestyle offerings. At Bupa Aged Care, the Higher Everyday Living Services are known as Sapphire Services.
Accommodation Costs and Higher Everyday Living Fees are set by the aged care provider, while the Basic Daily Fee and the Contributions are set by the Australian Government. If you have limited income and assets, the Government also helps with accommodation costs and sets your contribution.
How much does respite care cost?
For respite short-stay care, you won't need to pay the accommodation cost, but you'll be required to pay the Basic Daily Fee.
How can I pay for my accommodation?
In residential aged care, there are 3 main payment options available for residents:
Refundable Accommodation Deposit (RAD): A lump sum accommodation payment. The full deposit amount (RAD) is refunded when you leave the care home, less any amounts you have agreed to deduct and the retained amounts. You can agree to deduct your DAP from RAD.
Daily Accommodation Payment (DAP): Instead of paying for your accommodation as a lump sum, you can pay a daily fee. The amount you pay is calculated based on the MPIR (maximum permissible interest rate, set by the Australian Government), current on the day you move into permanent care.
Combination Payment: Part refundable accommodation deposit (RAD) and part daily accommodation payment (DAP), with the part RAD minus the retained amount being refunded when you leave the aged care home.
If you receive government support, your accommodation payments are referred to as the Refundable Accommodation Contribution (RAC) and the Daily Accommodation Contribution (DAC).
Want to calculate your costs for residential aged care?
Use our accommodation costs estimator below or contact our friendly team for assistance.
Need help? Contact our team who can provide you with a personalised quote tailored to your needs. If you have concerns about the affordability, ask us about government-funded accommodation options.
Frequently Asked Questions
What are accommodation costs, and do they apply?
In addition to your basic daily fees, you may be asked to pay for or contribute in part to your accommodation.
Your aged care fees for permanent care may also include an accommodation payment. This payment refers to the price of your chosen room and will vary across homes.
The amount you’re required to pay is based on individual financial circumstances (assets and income), determined by Services Australia upon completing an assessment.
Depending on the assessment outcome, you may be required to pay all or contribute to the cost of your accommodation. Some residents may have their accommodation paid for by the Australian Government. The means test is not compulsory to complete, but if you choose not to, you’ll be required to pay the full room price and other fees as determined by the Department.
If you have questions about the affordability of your aged care accommodation costs, contact us and ask about government-funded accommodation options.
This fee does not apply to respite short-stay care.
Does the 2% RAD retention cause a DAP to be paid?
When your RAD balance reduces due to retention deductions, this does not trigger any additional payments to ‘top up’ the RAD back to the initial lump sum payment. However, the reduced value of a RAD due to retentions will be reflected in the calculation of the resident's contribution towards the Non-Clinical Care Fee and the Hoteling Supplement.
How does the DAP indexation work?
DAPs are indexed twice a year (on 20 March and 20 September) to the CPI. This aligns with government-funded accommodation supplement increases. It applies only to new residents from 1 November 2025. It does not apply to DACs.
Is it compulsory to carry out a Combined Assets and Income Assessment?
No, it’s not compulsory to complete an “Aged Care calculation of your cost of care”. For those who choose not to complete this assessment, you’ll be charged the maximum HSC and NCCC and the full accommodation price.
Am I eligible for subsidised aged care costs?
This depends upon an individual’s assessment. This is determined by Services Australia after completing an “Aged Care calculation of your cost of care”.
The Government will subsidise payments for people who can’t afford residential aged care fees, so depending upon your personal situation you may be classified as a ‘Fully Supported Resident’ or a ‘Partially Supported Resident’ and receive some government financial assistance.
If I choose to pay with a Refundable Accommodation Deposit, is this completely refundable when I leave my care home?
The deposit is not fully refundable due to a 2% retention fee that is deducted monthly. When you leave the care home, the full amount of the deposit will be refunded, minus any agreed-upon deductions and the retention fees. The retention is calculated as 2% of the RAD per annum, applied daily to the remaining balance, and deducted monthly, for a maximum period of 5 years.
How much does respite care cost?
For respite or short term care, you will be required to pay the Basic Daily Fee. You won’t need to pay the accommodation cost.
Should I seek financial advice?
Yes. It is always recommended to seek advice from an accredited financial adviser who can guide you through the financial decisions relating to aged care.
What does “grandfathering” mean, and what happens for residents who entered care before 1 November 2025?
If you entered permanent residential aged care before 1 November 2025, you are protected under legislation as a “post-2014 resident.” This means your existing funding arrangements continue under grandfathering rules unless you choose to opt into the new rules. You can find further information on 1 July 2014 fee arrangements on the Government website.
Where can I learn more about residential aged care home fees?
The My Aged Care website is a great resource to get started with aged care and learn more about fees and costs.
Where to apply for an aged care assessment
Learn more about aged care fees such as DAP and RAD
Learn more about DAP indexation
Learn more about Basic Daily Care Fee (BDCF)
Learn more about Hotelling Supplement Contribution (HSC)
Learn more about Non-Clinical Care Contribution (NCCC)
Learn more about Higher Everyday Living Fees (HELF)